Citrix Systems Beats Estimates Yet Again

Citrix Systems (NAS: CTXS) reported earnings on Jan. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Citrix Systems met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and earnings per share improved significantly.

Gross margins contracted, operating margins grew, and net margins dropped.

Revenue details
Citrix Systems chalked up revenue of $619.4 million. The 31 analysts polled by S&P Capital IQ expected a top line of $618.5 million. Sales were 17% higher than the prior-year quarter's $529.7 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.78. The 32 earnings estimates compiled by S&P Capital IQ averaged $0.76 per share on the same basis. GAAP EPS of $0.58 for Q4 were 16% higher than the prior-year quarter's $0.50 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 89.6%, 90 basis points worse than the prior-year quarter. Operating margin was 21.9%, 10 basis points better than the prior-year quarter. Net margin was 17.6%, 20 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $562.4 million. On the bottom line, the average EPS estimate is $0.50.

Next year's average estimate for revenue is $2.51 billion. The average EPS estimate is $2.72.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 449 members out of 520 rating the stock outperform, and 71 members rating it underperform. Among 160 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 144 give Citrix Systems a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Citrix Systems is outperform, with an average price target of $80.04.

Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Citrix Systems makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in our report: "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.