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Citrix Systems Inc. posted better-than-expected earnings and revenues in the fourth quarter of 2017.
The cloud computing company’s earnings (excluding $3.59 from non-recurring items) came in at $1.66 per share, above the Zacks Consensus Estimate of $1.60. The bottom line also increased 3.1% from the year-ago figure.
Net revenues came in at $777.9 million, marginally above the Zacks Consensus Estimate of $777.6 million.
Operating Results
Gross margin (adjusted) was 88% in the quarter under review compared with 86% in the prior-year quarter. Quarterly operating margin (adjusted) was 32% compared with 35% in the prior-year quarter. As of Dec 31, 2017, deferred revenues grossed $1.9 billion compared with $1.7 billion a year ago. Total operating expenses climbed 7.8% to $466.22 million in the reported quarter.
During the fourth quarter of 2017, Citrix generated approximately $254 million of cash flow from continuing operations compared with $208 million in the same quarter of 2016. Citrix exited the quarter with $1,115.13 million in cash and cash equivalents compared with $836.09 million at the end of 2016.
Citrix Systems, Inc. Price, Consensus and EPS Surprise
Product and Licenses revenues grossed $262.55 million, up 2.8% year over year. License updates and maintenance revenues totaled $427.2 million, up 4.4% year over year. Software-as-a-Service (SaaS) revenues came in at $49.71 million, up 37.6% from the prior-year quarter. Professional Services revenues increased 13.2% to $38.4 million in the reported quarter.
Revenues by Geography
Net revenues in the Americas (both North & Latin America) increased 8% on a year-over-year basis while the same inched up 1% in the Europe, Middle East and Africa (EMEA) region. Also, the metric in the Asia-Pacific and Japan (APJ) region climbed 10%.
Q118 Outlook
The Fort Lauderdale, FL-based company expects net revenues in the range of $670-$680 million. The Zacks Consensus Estimate for the same is pegged at $685.40 million. Earnings per share (on an adjusted basis) are projected in the $1.03-$1.06 band, ahead of the Zacks Consensus Estimate of $1.01.
2018 Outlook
The company expects net revenues between $2.86 billion and $2.88 billion. While earnings per share (adjusted) are anticipated between $4.80 and $4.90. The Zacks Consensus Estimate for 2018 earnings stands at $4.80 per share on revenues of $2.89 billion.
Shares of Aspen Technology, DST Systems and Progress Software rallied more than 21%, 15% and 33%, respectively, in 2017.
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Citrix's (CTXS) Q4 Earnings & Revenues Surpass Estimates
Citrix Systems Inc. posted better-than-expected earnings and revenues in the fourth quarter of 2017.
The cloud computing company’s earnings (excluding $3.59 from non-recurring items) came in at $1.66 per share, above the Zacks Consensus Estimate of $1.60. The bottom line also increased 3.1% from the year-ago figure.
Net revenues came in at $777.9 million, marginally above the Zacks Consensus Estimate of $777.6 million.
Operating Results
Gross margin (adjusted) was 88% in the quarter under review compared with 86% in the prior-year quarter. Quarterly operating margin (adjusted) was 32% compared with 35% in the prior-year quarter. As of Dec 31, 2017, deferred revenues grossed $1.9 billion compared with $1.7 billion a year ago. Total operating expenses climbed 7.8% to $466.22 million in the reported quarter.
During the fourth quarter of 2017, Citrix generated approximately $254 million of cash flow from continuing operations compared with $208 million in the same quarter of 2016. Citrix exited the quarter with $1,115.13 million in cash and cash equivalents compared with $836.09 million at the end of 2016.
Citrix Systems, Inc. Price, Consensus and EPS Surprise
Citrix Systems, Inc. Price, Consensus and EPS Surprise | Citrix Systems, Inc. Quote
Revenues by Product Mix
Product and Licenses revenues grossed $262.55 million, up 2.8% year over year. License updates and maintenance revenues totaled $427.2 million, up 4.4% year over year. Software-as-a-Service (SaaS) revenues came in at $49.71 million, up 37.6% from the prior-year quarter. Professional Services revenues increased 13.2% to $38.4 million in the reported quarter.
Revenues by Geography
Net revenues in the Americas (both North & Latin America) increased 8% on a year-over-year basis while the same inched up 1% in the Europe, Middle East and Africa (EMEA) region. Also, the metric in the Asia-Pacific and Japan (APJ) region climbed 10%.
Q118 Outlook
The Fort Lauderdale, FL-based company expects net revenues in the range of $670-$680 million. The Zacks Consensus Estimate for the same is pegged at $685.40 million. Earnings per share (on an adjusted basis) are projected in the $1.03-$1.06 band, ahead of the Zacks Consensus Estimate of $1.01.
2018 Outlook
The company expects net revenues between $2.86 billion and $2.88 billion. While earnings per share (adjusted) are anticipated between $4.80 and $4.90. The Zacks Consensus Estimate for 2018 earnings stands at $4.80 per share on revenues of $2.89 billion.
Zacks Rank & Key Picks
Citrix carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Aspen Technology, Inc. (AZPN - Free Report) , DST Systems, Inc. and Progress Software Corporation (PRGS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Aspen Technology, DST Systems and Progress Software rallied more than 21%, 15% and 33%, respectively, in 2017.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>