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Citrix Systems (CTXS) Beats on Earnings & Revenues in Q1
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Citrix Systems Inc. posted better-than-expected earnings and revenues in the first quarter of 2017.
The cloud computing company’s earnings came in at 85 cents per share, beating the Zacks Consensus Estimate by 10 cents. Earnings, however, declined 13.27% from the year-ago figure.
Operating Results
Net revenue came in at $662.7 million, marginally above the Zacks Consensus Estimate of $661.1 million. However, revenues were down 19.74% on a year-over-year basis. Gross margin (adjusted) was 86.6% in the quarter under review, compared with 85.1% in the prior-year quarter. Quarterly operating margin (adjusted) was 27.5%, compared with 28.6% in the prior-year quarter. As of Mar 31, 2017, deferred revenues grossed $1.7 billion, compared with $1.5 billion a year ago.
During the first quarter of 2017, Citrix generated approximately $292 million of cash from operations, compared with $307 million in the same quarter of 2016. Citrix exited the quarter with $908 million in cash and cash equivalents, compared with $836 million at the end of 2016.
Revenues by Product Mix
Product and Licenses revenues grossed $191.6 million, down 5.2% year over year. License updates and maintenance revenues totaled $402.8 million, up 2.5% year over year. Software-as-a-Service (SaaS) revenues came in at $38.7 million, up 24.5% from the prior-year quarter. Professional Services revenues declined 9.2% to $29.6 million in the reported quarter.
Revenues by Geography
Net revenues in the Americas (both North & Latin America) increased 1% year over year. While revenues in Europe, Middle East and Africa (EMEA) region decreased 2%, the Pacific region saw a 10% increase.
Citrix Systems, Inc. Price, Consensus and EPS Surprise
The company expects net revenues in the band of $685 million to $695 million for the second quarter of 2017. Earnings per share (on an adjusted basis) are projected in the range of 97 cents to $1.00. The Zacks Consensus Estimate for second-quarter revenues and earnings per share is $693.06 million and 88 cents, respectively.
Outlook for 2017
The Fort Lauderdale, FL-based company expects net revenue in the range $2.81 billion to $2.84 billion for 2017. The Zacks Consensus Estimate for the same is $2.83 billion. Earnings per share (on an adjusted basis) are projected in the range of $4.60 to $4.65.The Zacks Consensus Estimate for it is $3.81.
Zacks Rank & Key Picks
Citrix carries a Zacks Rank #3 (Hold). Better-ranked stocks in the computer - software industry includeDST Systems , Adobe Systems Incorporated (ADBE - Free Report) and Avid Technology . DST Systems sports a Zacks Rank #1 (Strong Buy), while Adobe Systems and Avid Technology carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of DST Systems, Adobe Systems and Avid Technology gained around 13%, 29% and 28%, respectively, on a year-to-date basis.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
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Citrix Systems (CTXS) Beats on Earnings & Revenues in Q1
Citrix Systems Inc. posted better-than-expected earnings and revenues in the first quarter of 2017.
The cloud computing company’s earnings came in at 85 cents per share, beating the Zacks Consensus Estimate by 10 cents. Earnings, however, declined 13.27% from the year-ago figure.
Operating Results
Net revenue came in at $662.7 million, marginally above the Zacks Consensus Estimate of $661.1 million. However, revenues were down 19.74% on a year-over-year basis. Gross margin (adjusted) was 86.6% in the quarter under review, compared with 85.1% in the prior-year quarter. Quarterly operating margin (adjusted) was 27.5%, compared with 28.6% in the prior-year quarter. As of Mar 31, 2017, deferred revenues grossed $1.7 billion, compared with $1.5 billion a year ago.
During the first quarter of 2017, Citrix generated approximately $292 million of cash from operations, compared with $307 million in the same quarter of 2016. Citrix exited the quarter with $908 million in cash and cash equivalents, compared with $836 million at the end of 2016.
Revenues by Product Mix
Product and Licenses revenues grossed $191.6 million, down 5.2% year over year. License updates and maintenance revenues totaled $402.8 million, up 2.5% year over year. Software-as-a-Service (SaaS) revenues came in at $38.7 million, up 24.5% from the prior-year quarter. Professional Services revenues declined 9.2% to $29.6 million in the reported quarter.
Revenues by Geography
Net revenues in the Americas (both North & Latin America) increased 1% year over year. While revenues in Europe, Middle East and Africa (EMEA) region decreased 2%, the Pacific region saw a 10% increase.
Citrix Systems, Inc. Price, Consensus and EPS Surprise
Citrix Systems, Inc. Price, Consensus and EPS Surprise | Citrix Systems, Inc. Quote
Outlook for Second-Quarter 2017
The company expects net revenues in the band of $685 million to $695 million for the second quarter of 2017. Earnings per share (on an adjusted basis) are projected in the range of 97 cents to $1.00. The Zacks Consensus Estimate for second-quarter revenues and earnings per share is $693.06 million and 88 cents, respectively.
Outlook for 2017
The Fort Lauderdale, FL-based company expects net revenue in the range $2.81 billion to $2.84 billion for 2017. The Zacks Consensus Estimate for the same is $2.83 billion. Earnings per share (on an adjusted basis) are projected in the range of $4.60 to $4.65.The Zacks Consensus Estimate for it is $3.81.
Zacks Rank & Key Picks
Citrix carries a Zacks Rank #3 (Hold). Better-ranked stocks in the computer - software industry includeDST Systems , Adobe Systems Incorporated (ADBE - Free Report) and Avid Technology . DST Systems sports a Zacks Rank #1 (Strong Buy), while Adobe Systems and Avid Technology carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of DST Systems, Adobe Systems and Avid Technology gained around 13%, 29% and 28%, respectively, on a year-to-date basis.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>