Though CA (CA -3.3%) beat FQ4 estimates, it's guiding for FY15 (ends March '15) EPS from continuing ops of $2.45-$2.52, below a $2.56 consensus. FY15 revenue guidance of $4.43B-$4.49B is in-line with a $4.47B consensus.
The systems management software vendor has also announced a new $1B buyback; it's good for buying 7.6% of shares at current levels. $167M was spent on buybacks in FQ4, and $505M in FY14.
While CA's revenue only fell 3% Y/Y in FQ4, bookings fell 15% to $1.24B thanks to a 21% drop in North American bookings to $768M; international bookings declined 1% to $473M. The company has been facing tough competition both from established vendors such as IBM, and upstarts such as ServiceNow.
Mainframe Solutions revenue fell 1% Y/Y to $613M, and had a 55% op. margin. Enterprise Solutions (includes server management) revenue fell 4%, and had a -2% op. margin.
In spite of the revenue drop, R&D spend rose 31% Y/Y to $159M, and G&A spend 17% to $118M. Sales/marketing spend fell 2% to $318M.
FQ4 results, PR