dcsimg
RealTime IT News

CA, Tech Data Disappoint Wall Street

Computer Associates and Tech Data reported quarterly results after the close on Thursday that weren't quite as strong as Wall Street analysts were looking for.

CA's pro forma earnings of 20 cents a share met estimates, and cash flow grew 26% to $738 million, but sales of $910 million were below Wall Street estimates, and the company's June quarter guidance also was below analysts' expectations.

Tech Data's results also left something to be desired. The company's earnings of 56 cents a share missed estimates by 4 cents, but revenues of $5.08 billion were ahead of forecasts. Tech Data also issued disappointing guidance, warning that second quarter earnings will come in at 40-45 cents a share, well below 56-cent expectations.

The shares of both companies fell in after-hours trading.

The broader market fared better Thursday, posting strong gains after first-quarter GDP was revised higher to 3.5%, alleviating some anxiety about the pace of economic growth. Inflation remained tame in the quarter.

The Nasdaq jumped 21 to 2071, the S&P 500 rose 7 to 1197, and the Dow climbed 79 to 10,537. Volume declined to 1.63 billion shares on the NYSE, but rose to 1.65 billion on the Nasdaq. Advancers led 22-9 on the NYSE, and 21-8 on the Nasdaq. Upside volume was 79% on the NYSE, and 81% on the Nasdaq. New highs-new lows were 95-23 on the NYSE, and 85-45 on the Nasdaq.

Wind River soared 22% after the company reported a profit on 17% sales growth.

Novell fell 7% after the company reported a loss due to restructuring charges. Pro forma results would have been breakeven for the quarter.

Cree jumped 10% on an order from Sumitomo.