Computer Associates Predicts Strong Profit

Computer Associates International Inc. said it expects fiscal fourth-quarter and 1998 earnings to beat analysts’ estimates, buoyed by strong sales of software to manage personal computer networks. Profit will reach 75 cents a diluted share for the quarter ended March 31 and $2.10 for the year, the company said. That exceeds the 71 cents average quarterly estimate and $2.07 annual estimate of analysts surveyed by IBES International Inc. Islandia, N.Y.-based Computer Associates is selling more software to manage PC-based corporate computer networks as its older mainframe software business erodes. The early announcement aims to allay concern that its failed $9.8-billion bid to buy Computer Sciences Corp. of El Segundo was pursued to mask slowing sales. The company is expected to report its results May 19. Its shares jumped $3.63 to close at $60.13 on the New York Stock Exchange.