Research Desk Line-up: Amdocs Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 14, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on CA, Inc. (NASDAQ: CA), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=CA, following the Company's posting of its financial results on October 25, 2017, for the second quarter fiscal 2018 (Q2 FY18). The New York-based Company's non-GAAP diluted EPS declined 10% y-o-y, however, it came in-line with market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Business Software & Services industry. Pro-TD has currently selected Amdocs Limited (NASDAQ: DOX) for due-diligence and potential coverage as the Company reported on November 08, 2017, its operating results for Q4 FY17 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Amdocs when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CA; also brushing on DOX. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/'symbol=CA
http://protraderdaily.com/optin/'symbol=DOX
Earnings Reviewed
For the three months ended on September 30, 2017, CA reported total revenues of $1.03 billion, which was above the $1.02 billion recorded at the end of Q2 FY17. However, total revenues for the reported missed market forecast of $1.05 billion. The Company attributed the growth in quarterly total revenues to an increase in software fees and other revenue, which rose to $133 million in Q2 FY18 from $119 million in the year-ago quarter. During the reported quarter, Professional services revenues came in flat at $75 million. Meanwhile, Subscription and maintenance revenues grew to $826 million in Q2 FY18 from $824 million in Q2 FY17.
The IT management software Company reported GAAP net income of $184 million, or $0.44 per diluted share, in Q2 FY18 compared to $212 million, or $0.50 per diluted share, in Q2 FY17. Meanwhile, the non-GAAP net income in Q2 FY18 was $263 million, or $0.62 per diluted share, versus $283 million, or $0.67 per diluted share, in Q2 FY17. Moreover, Wall Street had also expected the non-GAAP net income for the reported quarter to be $0.62 per diluted share.
Operating Metrics
In the three months ended on September 30, 2017, the Company reported non-GAAP operating expenses before interest and income taxes of $642 million compared to $608 million in Q2 FY17. The Company's non-GAAP operating income before interest and income taxes came in at $392 million for Q2 FY18 versus $410 million in the last year's same quarter. The Company reported non-GAAP operating margin of 38% of total revenues in Q2 FY18 compared to 40% of total revenues in the previous year's comparable quarter. Meanwhile, the Company's total bookings during the reported quarter was $720 million compared to $729 million in Q2 FY17.
CA's Segment-Wise
The Mainframe Solutions segment's revenues were $539 million for Q2 FY18, which was lower than the $550 million in the last year's comparable quarter. Meanwhile, the segment's profit improved to $351 million, or 65% of the segment's revenues, during Q2 FY18 from $339 million, or 62% of the segment's revenues, in Q2 FY17.
The Company's Enterprise Solution revenues increased to close at $420 million in Q2 FY18 from $393 million in Q2 FY17. However, the segment's profit fell to $40 million, or 10% of the segment's revenues, in Q2 FY18 from $69 million, or 18% of the segment's revenues, in Q2 FY17.
Services revenues came in flat at $75 million in Q2 FY18. The segment profit for the reported quarter was $1 million, or 1% of segment revenues, compared to $2 million, or 3% of segment revenues, in Q2 FY17.
Cash Flow & Balance Sheet
During the second quarter ended on September 30, 2017, CA generated $37 million in cash from operations against cash used in operations of $53 million in the second-quarter of fiscal FY17. Furthermore, positive free cash flow for the reported quarter was $27 million compared to a negative free cash flow of $61 million in Q2 FY17.
CA had $2.82 billion in cash and cash equivalents as on September 30, 2017, compared to compared to $2.77 billion as on March 31, 2017. Furthermore, the Company's long-term debt stood at $2.52 billion on September 30, 2017, versus $2.77 billion as on March 31, 2017.
Dividend
In the separate press release on November 09, 2017, the Company's Board of Directors declared a regular, quarterly cash dividend of $0.255 per share of common stock. The dividend will be paid on December 12, 2017, to stockholders of record at the close of business on November 30, 2017.
Outlook
For the full year FY18, CA expects total revenues to grow by 5% y-o-y and 4% in constant currency. The Company is anticipating FY18 non-GAAP operating margin to be between 36% and 37%. Furthermore, GAAP earnings is forecasted to decrease by 5% to 8% y-o-y, while non-GAAP EPS is projected to decline by 2% to flat during full year FY18.
Stock Performance
At the closing bell, on Monday, November 13, 2017, CA, Inc.'s stock marginally slipped 0.40%, ending the trading session at $32.32. A total volume of 1.44 million shares have exchanged hands. The Company's stock price advanced 1.92% in the past six months and 0.78% in the previous twelve months. Moreover, the stock gained 1.73% since the start of the year. The stock is trading at a PE ratio of 18.65 and has a dividend yield of 3.16%. The stock currently has a market cap of $13.45 billion.
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