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Factors Expected to Impact Citrix Systems' (CTXS) Q4 Earnings
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Citrix Systems Inc. is scheduled to report fourth-quarter 2018 results on Jan 23. The company has surpassed the Zacks Consensus Estimate in the trailing four quarters, recording average positive earnings surprise of 11.3%.
In third-quarter 2018, Citrix delivered non-GAAP earnings of $1.40 per share, beating the Zacks Consensus Estimate by 15 cents. The figure surged 14.8% on a year-over-year basis.
Revenues increased 6% from the year-ago quarter to $732.5 million and comfortably surpassed the Zacks Consensus Estimate of $723 million.
Guidance & Estimates
For fourth-quarter 2018, Citrix anticipates momentum in the adoption of subscription-based solutions to continue.
Citrix raised guidance for fiscal 2018. The company now expects revenues between $2.95 billion and $2.97 billion (up from previous guidance of $2.92 billion and $2.95 billion). The Zacks Consensus Estimate for revenues is pegged at $2.96 billion.
Moreover, non-GAAP earnings are now projected in the range of $5.55-$5.60 per share (previously $5.30-$5.40 per share). The Zacks Consensus Estimate for earnings is pegged at $5.57 per share.
Notably, the company’s shares have gained 15.5% year over year, substantially outperforming the industry’s rally of 11.3%.
Let’s see how things are shaping up prior to this announcement.
Factors Impacting Q4 Results
Citrix reported 55 transactions worth more than $1 million in the last reported quarter, primarily from technology, healthcare and government sectors. Robust adoption of unified workspace solutions and hybrid cloud offerings are key catalysts. Traction witnessed by ShareFile is also notable.
The company also continues to focus on enhancing its subscription based solutions with new capabilities. In the third quarter, Subscription revenues surged 37.1% from the year-ago to $111.5 million. Management stated that 50% of new product bookings in Workspace services were subscription based.
Workspace services revenues in the last reported quarter increased 7% year over year to $462 million. The Zacks Consensus Estimate for Workspace Services and Desktop Solutions revenues in fourth quarter is pegged at $492 million, compared with the year-ago figure of $480 million.
Acquisitions: Key Catalysts
Citrix recently acquired Sapho in a bid to empower company’s comprehensive Citrix Workspace suite with guided work capabilities. Reportedly, the company completed the buyout for approximately $200 million in cash.
Sapho’s clientele comprises notable names including the likes of Broadcom, CBS Interactive, evo, among other customers. Additionally, integration of Sapho, which the company anticipates to conclude around second half of 2019, is expected to enhance Citrix’s workspace capabilities. This in turn is likely to aid the company’s revenue growth, going forward.
In a customer-friendly move, the company had purchased Cedexis — a web monitoring company. Apart from expanding the choices to Citrix’s customers, the deal offers increased flexibility aimed at improving its operational performance and efficiency.
Partnerships & Collaborations Enhance Portfolio
Citrix has expanded its business through partnerships with established sector players. Citrix, in collaboration with Microsoft (MSFT - Free Report) , provides services enabling enterprises to deploy Windows 10 desktop systems and other apps, and tools directly on Azure cloud platform, consequently simplifying the implementation of new workspaces.
In collaboration with Nutanix, Citrix devised a scalable hyper-converged infrastructure (“HCI”) solution aimed at enhancing productivity through minimized infrastructure complexity. The company has also extended the application of ShareFile workflows and connectors to Google Drive and G-Suite, as part of its ongoing alliance with Google.
Moreover, the company has deployed its Cloud services including XenDesktop and XenApp on Oracle Cloud Marketplace. This is likely to lead to new customer additions, consequently generating incremental revenues.
We believe the synergies from buyouts, strategic alliances and focus on adding innovative features to its subscription offerings are likely to act as tailwinds for fourth-quarter results.
What the Zacks Model Unveils
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Citrixhas a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks with Favorable Combination
Here are a few stocks that are worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
TD Ameritrade Holding Corporation (AMTD - Free Report) has an Earnings ESP of +0.62% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Factors Expected to Impact Citrix Systems' (CTXS) Q4 Earnings
Citrix Systems Inc. is scheduled to report fourth-quarter 2018 results on Jan 23. The company has surpassed the Zacks Consensus Estimate in the trailing four quarters, recording average positive earnings surprise of 11.3%.
In third-quarter 2018, Citrix delivered non-GAAP earnings of $1.40 per share, beating the Zacks Consensus Estimate by 15 cents. The figure surged 14.8% on a year-over-year basis.
Revenues increased 6% from the year-ago quarter to $732.5 million and comfortably surpassed the Zacks Consensus Estimate of $723 million.
Guidance & Estimates
For fourth-quarter 2018, Citrix anticipates momentum in the adoption of subscription-based solutions to continue.
Citrix raised guidance for fiscal 2018. The company now expects revenues between $2.95 billion and $2.97 billion (up from previous guidance of $2.92 billion and $2.95 billion). The Zacks Consensus Estimate for revenues is pegged at $2.96 billion.
Moreover, non-GAAP earnings are now projected in the range of $5.55-$5.60 per share (previously $5.30-$5.40 per share). The Zacks Consensus Estimate for earnings is pegged at $5.57 per share.
Notably, the company’s shares have gained 15.5% year over year, substantially outperforming the industry’s rally of 11.3%.
Let’s see how things are shaping up prior to this announcement.
Factors Impacting Q4 Results
Citrix reported 55 transactions worth more than $1 million in the last reported quarter, primarily from technology, healthcare and government sectors. Robust adoption of unified workspace solutions and hybrid cloud offerings are key catalysts. Traction witnessed by ShareFile is also notable.
The company also continues to focus on enhancing its subscription based solutions with new capabilities. In the third quarter, Subscription revenues surged 37.1% from the year-ago to $111.5 million. Management stated that 50% of new product bookings in Workspace services were subscription based.
Workspace services revenues in the last reported quarter increased 7% year over year to $462 million. The Zacks Consensus Estimate for Workspace Services and Desktop Solutions revenues in fourth quarter is pegged at $492 million, compared with the year-ago figure of $480 million.
Acquisitions: Key Catalysts
Citrix recently acquired Sapho in a bid to empower company’s comprehensive Citrix Workspace suite with guided work capabilities. Reportedly, the company completed the buyout for approximately $200 million in cash.
Sapho’s clientele comprises notable names including the likes of Broadcom, CBS Interactive, evo, among other customers. Additionally, integration of Sapho, which the company anticipates to conclude around second half of 2019, is expected to enhance Citrix’s workspace capabilities. This in turn is likely to aid the company’s revenue growth, going forward.
In a customer-friendly move, the company had purchased Cedexis — a web monitoring company. Apart from expanding the choices to Citrix’s customers, the deal offers increased flexibility aimed at improving its operational performance and efficiency.
Partnerships & Collaborations Enhance Portfolio
Citrix has expanded its business through partnerships with established sector players. Citrix, in collaboration with Microsoft (MSFT - Free Report) , provides services enabling enterprises to deploy Windows 10 desktop systems and other apps, and tools directly on Azure cloud platform, consequently simplifying the implementation of new workspaces.
In collaboration with Nutanix, Citrix devised a scalable hyper-converged infrastructure (“HCI”) solution aimed at enhancing productivity through minimized infrastructure complexity. The company has also extended the application of ShareFile workflows and connectors to Google Drive and G-Suite, as part of its ongoing alliance with Google.
Moreover, the company has deployed its Cloud services including XenDesktop and XenApp on Oracle Cloud Marketplace. This is likely to lead to new customer additions, consequently generating incremental revenues.
We believe the synergies from buyouts, strategic alliances and focus on adding innovative features to its subscription offerings are likely to act as tailwinds for fourth-quarter results.
What the Zacks Model Unveils
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Citrixhas a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks with Favorable Combination
Here are a few stocks that are worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
The Progressive Corporation (PGR - Free Report) has an Earnings ESP of +1.57% and a Zacks Rank #1.You can see the complete list of today’s Zacks #1 Rank stocks here.
TD Ameritrade Holding Corporation (AMTD - Free Report) has an Earnings ESP of +0.62% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>