Citrix Systems Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

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

The 10-second takeaway
For the quarter ended June 30 (Q2), Citrix Systems met expectations on revenues and beat expectations on earnings per share.

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


Margins contracted across the board.

Revenue details
Citrix Systems notched revenue of $615.2 million. The 30 analysts polled by S&P Capital IQ wanted to see revenue of $612.4 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $530.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.71. The 30 earnings estimates compiled by S&P Capital IQ predicted $0.59 per share. GAAP EPS of $0.49 for Q2 were 14% higher than the prior-year quarter's $0.43 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 87.4%, 200 basis points worse than the prior-year quarter. Operating margin was 13.4%, 480 basis points worse than the prior-year quarter. Net margin was 15.0%, 40 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $645.1 million. On the bottom line, the average EPS estimate is $0.71.

Next year's average estimate for revenue is $2.55 billion. The average EPS estimate is $2.77.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 461 members out of 531 rating the stock outperform, and 70 members rating it underperform. Among 155 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 129 give Citrix Systems a green thumbs-up, and 26 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 $88.67.

The article Citrix Systems Beats Up on Analysts Yet Again originally appeared on Fool.com.

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.

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