We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Key Reasons to Add Citrix (CTXS) Stock to Your Portfolio Now
Read MoreHide Full Article
Citrix Systems Inc. appears a promising pick right now on the back of stellar fourth-quarter 2017 results, strong product portfolio and acquisition synergies. Moreover, it has been a favorite with investors, courtesy of its rising share price and strong fundamentals.
The company’sshares have returned 15.3% over the past six months, substantially outperforming the 10.9% rally of the industry it belongs to.
Notably, Citrixhas a number of other aspects that make it a lucrative investment option.
Upbeat Q4 Results
Citrix delivered 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 higher than the Zacks Consensus Estimate of $777.6 million.
Positive Earnings Surprise History
Citrix has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters, recording a positive average earnings surprise of 7.1%.
Robust SaaS Revenues Aids Citrix
Software-as-a-Service (SaaS) revenues are anticipated to be robust in the first quarter identical to the last four quarters. This in turn will boost the company’s top-line in the period as well. In the last reported-quarter SaaS revenues came in at $49.71 million, up 37.6% from the prior-year quarter. The Zacks Consensus Estimate for first-quarter SaaS revenues stands at $51 million, higher as reported in the previous quarter.
Strong Product Portfolio & Buyouts
We are impressed by the company's efforts to expand its product portfolio. Citrix’s strong customer base is also a catalyst. In a customer-friendly move, the company recently purchased Cedexis — a web monitoring company. Apart from widening the choices to Citrix’s customers, the deal offers increased flexibility aimed at improving operational performance and efficiencies. The addition of Cedexis’ technology will enhance Citrix’s networking portfolio. The company completed the spin-off and merger of its GoTo business with LogMeIn last year aimed at improving its efficiencies.
Share Buyback Program
Citrix has recently entered into an accelerated share repurchase (ASR) transaction with Goldman Sachs & Co. LLC to buy back an aggregate of $750 million shares. This move is part of the previously announced capital return program by dint of which, the company aims to return $2 billion to its shareholders by Dec 31, 2018. In November 2017, the company’s board cleared a share buyback program worth more than $2 billion. Citrix has already repurchased $750 million shares of the total authorization. Following this new ASR, the company will be left with $500 million shares to be bought back.
Superior Return on Equity (ROE)
Citrix has an ROE of 45.2%, a lot better than the industry average of 30.3%. This shows that the company reinvests its cash more efficiently.
Applied Materials, NVIDIA and Western Digital have a long-term expected EPS growth rate of 13.26%, 10.25% and 19%, respectively.
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.
Image: Bigstock
Key Reasons to Add Citrix (CTXS) Stock to Your Portfolio Now
Citrix Systems Inc. appears a promising pick right now on the back of stellar fourth-quarter 2017 results, strong product portfolio and acquisition synergies. Moreover, it has been a favorite with investors, courtesy of its rising share price and strong fundamentals.
The company’sshares have returned 15.3% over the past six months, substantially outperforming the 10.9% rally of the industry it belongs to.
Notably, Citrixhas a number of other aspects that make it a lucrative investment option.
Upbeat Q4 Results
Citrix delivered 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 higher than the Zacks Consensus Estimate of $777.6 million.
Positive Earnings Surprise History
Citrix has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters, recording a positive average earnings surprise of 7.1%.
Robust SaaS Revenues Aids Citrix
Software-as-a-Service (SaaS) revenues are anticipated to be robust in the first quarter identical to the last four quarters. This in turn will boost the company’s top-line in the period as well. In the last reported-quarter SaaS revenues came in at $49.71 million, up 37.6% from the prior-year quarter. The Zacks Consensus Estimate for first-quarter SaaS revenues stands at $51 million, higher as reported in the previous quarter.
Strong Product Portfolio & Buyouts
We are impressed by the company's efforts to expand its product portfolio. Citrix’s strong customer base is also a catalyst. In a customer-friendly move, the company recently purchased Cedexis — a web monitoring company. Apart from widening the choices to Citrix’s customers, the deal offers increased flexibility aimed at improving operational performance and efficiencies. The addition of Cedexis’ technology will enhance Citrix’s networking portfolio. The company completed the spin-off and merger of its GoTo business with LogMeIn last year aimed at improving its efficiencies.
Share Buyback Program
Citrix has recently entered into an accelerated share repurchase (ASR) transaction with Goldman Sachs & Co. LLC to buy back an aggregate of $750 million shares. This move is part of the previously announced capital return program by dint of which, the company aims to return $2 billion to its shareholders by Dec 31, 2018. In November 2017, the company’s board cleared a share buyback program worth more than $2 billion. Citrix has already repurchased $750 million shares of the total authorization. Following this new ASR, the company will be left with $500 million shares to be bought back.
Superior Return on Equity (ROE)
Citrix has an ROE of 45.2%, a lot better than the industry average of 30.3%. This shows that the company reinvests its cash more efficiently.
Zacks Rank & Other Key Picks
Citrix carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector include Applied Materials, Inc. (AMAT - Free Report) , NVIDIA Corporation (NVDA - Free Report) and Western Digital Corporation (WDC - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Materials, NVIDIA and Western Digital have a long-term expected EPS growth rate of 13.26%, 10.25% and 19%, respectively.
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 >>