Shares of CA Inc. CA went up more than 4% in after-hours trading yesterday, after the company reported better-than-expected fourth-quarter fiscal 2016 results. Also, an encouraging 2017 outlook positively impacted the share price.The company posted adjusted earnings (including stock-based compensation but excluding other one-time items) of 56 cents, which came ahead of the Zacks Consensus Estimate of 52 cents.On a GAAP basis, earnings came in at 41 cents, compared with 33 cents a year ago.Quarter DetailsAlthough CA’s revenues of $1.009 billion decreased 1.4% from the year-ago quarter, it surpassed the Zacks Consensus Estimate of $993 million. The year-over-year decline was primarily due to a 3.5% decrease in Subscription and maintenance revenues (81% of total revenue) and a 1.2% drop in Professional Services revenues (8%). A 19.1% rise in Software fees and other revenues (11%) partially made up for the decline. An unfavorable foreign exchange impact of $28 million also took a toll on quarterly revenues.Moreover, on a segment basis, revenues from CA’s Mainframe Solutions were down 4.4% on a year-over-year basis to $547 million. Revenues from Enterprise Solutions increased 3.3% on a year-over-year basis to $380 million, whereas Services revenues decreased 1.2% year over year to $82 million. Mainframe Solutions and Services segments decreased primarily due to unfavorable foreign exchange impact.North America revenues were flat on a year-over-year basis, whereas International revenues were down 4% in local currency from the year-ago period.The company witnessed a 10% decline in total bookings. The year-over-year decrease was primarily due to lower renewals and lower new product sales.Moving on, CA reported adjusted income from continuing operations before interest and income taxes (including stock-based compensation but excluding other one-time items) of $352 million, up 14.3% year over year. As a percentage of revenues, adjusted income from continuing operations before interest and income taxes was up 478 basis points (bps) to 34.9%, primarily due to lower operating expenses. Adjusted operating expenses decreased 7.8% year over year to $507 million, while as a percentage of revenues, it decreased 351 bps year over year to 50.3%.CA’s adjusted net income from continuing operations (excluding amortization and other gains but including stock-based compensation) was $233.1 million or 56 cents per share. On a GAAP basis, net income from continuing operations came in at $171 million or 41 cents per share.CA exited the quarter with cash and cash equivalents of $2.812 billion compared with $2.353 billion in the previous quarter. The company’s total long-term debt (including current portion) came in at $1.953 billion. During the quarter, the company generated $471 million in cash from operating activities.Moreover, for fiscal 2016, CA repurchased 26 million shares worth $707 million. Going forward, management approved a $750 million stock repurchase program as of Mar 31, 2016. The company also paid $104 million as dividends to its shareholders during the quarter and $429 million for fiscal 2016.Fiscal 2017 GuidanceCA provided fiscal 2017 guidance. The company continues to expect total revenue growth in the range of flat to 1%, which translates to $4.04 billion to $4.08 billion (mid-point $4.06 billion). The Zacks Consensus Estimate for fiscal 2016 revenues is pegged at $4.05 billion.CA expects non-GAAP earnings per share from continuing operations to increase in a range of 1-3%. According to the company, “At March 31, 2016 exchange rates, this translates to reported non-GAAP diluted earnings per share from continuing operations of $2.51 to $2.56.” The Zacks Consensus Estimate for fiscal 2016 is pegged at $2.30.The company continues to expect cash flow from operations to increase in a range of 1%–5%. Considering the exchange rates as of Mar 31, 2016, this translates to a range of $1.06 billion to $1.10 billion.Our TakeCA reported better-than-expected fourth-quarter results. The year-over-year revenue comparison was however not favorable. CA’s major revenue generating segments were adversely affected during the quarter, primarily due to unfavorable foreign exchange impact. The company, however, provided an encouraging fiscal 2017 outlook.Furthermore, we believe that the increased efficiency offered by the wide range of products will attract customers across sectors, lending stability to the business model. We are positive about CA’s increased cloud exposure. A modest cash position and share repurchase also appear encouraging.CA has also adopted a “go to market” sales strategy. This brings together all the commercial functions including sales, marketing, brand management, pricing and consumer insight, which in turn helps the company to improve its bottom line, by integrating the marketing functions in order to lower cost.On the other hand, increasing competition from Oracle ORCL, International Business Machines IBM and HP Inc. HPQ and exposure to Europe remain the near-term headwinds.CA has a Zacks Rank #3 (Hold).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. 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