CA Technologies (CA:US), a maker of software for managing information technology, rose the most since January 2012 after quarterly sales and profit topped analysts’ estimates.
CA’s stock jumped 5.5 percent to $32.07 at 9:34 a.m. in New York. The shares, already up 38 percent this year before today, rose as high as $32.95 earlier in the session.
Excluding some items, earnings rose to 86 cents a share in the fiscal second quarter, the Islandia, New York-based company said yesterday in a statement. Analysts had projected 72 cents, according to data compiled by Bloomberg. Sales totaled $1.14 billion in the period, which ended on Sept. 30, beating the average estimate of $1.1 billion.
The results give a boost to the turnaround efforts of Chief Executive Officer Mike Gregoire, who joined the East Coast software maker in January after a career in Silicon Valley. He is increasing research and marketing spending in bid to jump-start growth with new products.
“This is clearly a beginning, but we still have work to do to get the aggregate portfolio growing,” he said in the statement.
To contact the reporter on this story: Nick Turner in New York at email@example.com
To contact the editor responsible for this story: Nick Turner at firstname.lastname@example.org