CA's stock climbs on better-than-expected Q3 sales
Islandia-based CA Technologies won its appeal against the Internal Revenue Service. Credit: Kevin P. Coughlin, 2012
Shares of software maker CA Technologies rose as much as 4 percent Wednesday after the company's third-quarter earnings beat analysts' expectations.
CA's stock hit $25.56 a share in midday trading, up from $24.55 on Tuesday.
The company, Long Island's largest by stock market value, said on Tuesday after the market closed that its third-quarter sales dropped 5 percent, to $1.2 billion, in the three months ended Dec. 31, compared to the same period last year. Analysts, however, had expected CA's sales to fall even further, to $1.17 billion.
The drop stemmed primarily from CA's largest unit: mainframe software. It's revenue fell 9 percent, to $622 million. That's largely because a 2009 legal settlement gave the company a $39- million single license payment in last year's third quarter, boosting sales.
The stock market value of Islandia-based CA is roughly $11.50 billion. It has about 1,525 employees on Long Island and close to 14,000 employees worldwide.
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