CA Technologies falls on outlook, job cuts costs
CA Technologies declines as outlook disappoints, sees costs for cut jobs and consolidation
NEW YORK (AP) -- CA Technologies' stock fell Wednesday as the software company announced job cut plans and offered 2014 adjusted earnings and revenue forecasts that missed Wall Street's expectations.
THE SPARK: On Tuesday CA Technologies reported fiscal fourth-quarter adjusted earnings from continuing operations of 68 cents per share on revenue of $1.15 billion. Analysts surveyed by FactSet expected earnings of 55 cents per share on revenue of $1.14 billion.
The company sees fiscal 2014 adjusted earnings between $2.35 and $2.43 per share on revenue in a range of $4.43 billion to $4.52 billion. Wall Street is looking for earnings of $2.53 per share on revenue of $4.64 billion.
CA Technologies said it will take a $150 million charge in 2014 related to the elimination of about 1,200 jobs globally and consolidation of some development sites. Most of the job cuts are expected to be completed by the end of its fiscal first quarter.
SHARE ACTION: Shares of CA Technologies fell 59 cents, or 2.1 percent, to $27.18 in afternoon trading. The stock has traded in a 52-week range of $21.48 to $27.94. Year-to-date the shares are up about 26 percent.
