We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Buyouts & Go to Market Strategy Drive CA's Q4 Earnings?
Read MoreHide Full Article
CA, Inc. (CA - Free Report) is slated to release fourth-quarter fiscal 2018 results on May 8. The company has a decent earnings surprise history. Notably, CA surpassed the Zacks Consensus Estimate in three of the trailing four quarters while matching the same on one occasion. It delivered an average positive earnings surprise of approximately 11%.
What the Zacks Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or #5) are best avoided.
CA has a Zacks Rank #3 and an Earnings ESP of -2.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Nevertheless, the company is expected to record improvement in top and bottom line figures. The Zacks Consensus Estimate for the fourth quarter is pegged at 60 cents per share, indicating an 11.1% increase on a year-over-year basis. Revenues are estimated to be around $1.08 billion, reflecting 7% year-over-year growth.
Factors to Consider
The regular enhancement of IT management, software and services portfolio via innovation and acquisitions is a major positive for the company.
Acquisitions have been one of the key strategies of CA to enhance its IT management, software and services portfolio. The company, last year, completed the acquisitions of Automic Holding GmbH and Veracode. Veracode recorded its highest bookings during the third quarter of fiscal 2018. We believe the diversity of its products and the increased efficiency offered by such buyouts will attract customers across sectors, lending stability to its business model.
Furthermore, we are optimistic about the recently launched products. The company has also been leveraging cloud computing to construct the most competitive business applications. The company is also focused on providing advanced management and security software required by organizations.
Additionally, the company’s “go to market” sales strategy brings together all the commercial functions, including sales, marketing, brand management, pricing and consumer insight. The integration of the marketing functions helps lower costs, consequently improving the bottom line.
However, intensifying competition, an uncertain economic environment and currency headwinds remain headwinds.
Analog Devices, Inc. (ADI - Free Report) has an Earnings ESP of +0.20% and a Zacks Rank #2.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Will Buyouts & Go to Market Strategy Drive CA's Q4 Earnings?
CA, Inc. (CA - Free Report) is slated to release fourth-quarter fiscal 2018 results on May 8. The company has a decent earnings surprise history. Notably, CA surpassed the Zacks Consensus Estimate in three of the trailing four quarters while matching the same on one occasion. It delivered an average positive earnings surprise of approximately 11%.
What the Zacks Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or #5) are best avoided.
CA has a Zacks Rank #3 and an Earnings ESP of -2.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Nevertheless, the company is expected to record improvement in top and bottom line figures. The Zacks Consensus Estimate for the fourth quarter is pegged at 60 cents per share, indicating an 11.1% increase on a year-over-year basis. Revenues are estimated to be around $1.08 billion, reflecting 7% year-over-year growth.
Factors to Consider
The regular enhancement of IT management, software and services portfolio via innovation and acquisitions is a major positive for the company.
Acquisitions have been one of the key strategies of CA to enhance its IT management, software and services portfolio. The company, last year, completed the acquisitions of Automic Holding GmbH and Veracode. Veracode recorded its highest bookings during the third quarter of fiscal 2018. We believe the diversity of its products and the increased efficiency offered by such buyouts will attract customers across sectors, lending stability to its business model.
Furthermore, we are optimistic about the recently launched products. The company has also been leveraging cloud computing to construct the most competitive business applications. The company is also focused on providing advanced management and security software required by organizations.
Additionally, the company’s “go to market” sales strategy brings together all the commercial functions, including sales, marketing, brand management, pricing and consumer insight. The integration of the marketing functions helps lower costs, consequently improving the bottom line.
However, intensifying competition, an uncertain economic environment and currency headwinds remain headwinds.
CA Inc. Price and EPS Surprise
CA Inc. Price and EPS Surprise | CA Inc. Quote
Stocks to Consider
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Microchip Technology Incorporated (MCHP - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Analog Devices, Inc. (ADI - Free Report) has an Earnings ESP of +0.20% and a Zacks Rank #2.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>