Citrix Systems Inc. posted encouraging results in the second quarter of 2016, reporting higher-than-expected earnings as well as revenues.
The cloud computing company’s earnings (excluding special items) came in at 99 cents per share, 7 cents ahead of the Zacks Consensus Estimate. Higher-than-expected revenues contributed to the earnings beat.
Operating Results
Net revenue came in at $843.0 million, up 5.8% on a year-over-year basis and also above the Zacks Consensus Estimate of $816 million. Gross margin stood at 83.2% in the quarter under review compared with 82.6% in the prior-year quarter. Quarterly operating margin was 28% versus 25% in the prior-year quarter. At the end of the reported quarter, deferred revenues grossed $1.6 billion compared with $1.5 billion a year ago.
During the second quarter of 2016, Citrix generated approximately $228 million of cash from operations compared with $201 million for the same quarter in 2015. The company exited the quarter with $666.2 million in cash and cash equivalents compared with $368.5 million at the end of 2015.
Revenues by Product Mix
Product and Licenses revenues grossed $219.6 million, up 7% year over year. License updates and maintenance revenues totaled $386.9 million, up 3% year over year. Software-as-a-Service (SaaS) revenues came in at $201.6 million, reflecting a 14% increase from the prior-year quarter while Professional Services revenues declined 6% to $34.9 million in the reported quarter.
Revenues by Geography
Revenues in the Americas (both North & Latin America) were up 11% year over year. Revenues in the Europe, Africa and the Middle East region decreased by less than 2% while the same in the Asia-Pacific region fell 9% year over year.
Outlook for Third-Quarter 2016
Citrix expects net revenues in the band of $820 million to $830 million for the third quarter of 2016. Earnings per share (on an adjusted basis) are projected in the range of $1.18 to $1.20. The Zacks Consensus Estimate for third quarter revenue and earnings is $815.2 million and 95 cents respectively.
Outlook for 2016
Fort Lauderdale, FL-based company raised its revenue estimates to a band of $3.37 billion to $3.39 billion from $3.34 billion to $3.36 billion issued earlier for full-year 2016. Earnings per share (on an adjusted basis) are now projected in the range of $5.00 to $5.10 instead of $4.90 to $5.00. The Zacks Consensus Estimate for 2016 revenue and earnings is $3.35 billion and $4.06 respectively.
Zacks Rank & Key Picks
Citrix currently has a Zacks Rank #4 (Sell). Better-ranked stocks in the same space include Adobe Systems Inc. (ADBE - Free Report) , Proofpoint Inc. and Servicesource International Inc. . All the companies sport a Zack Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Citrix Systems Inc. posted encouraging results in the second quarter of 2016, reporting higher-than-expected earnings as well as revenues.
The cloud computing company’s earnings (excluding special items) came in at 99 cents per share, 7 cents ahead of the Zacks Consensus Estimate. Higher-than-expected revenues contributed to the earnings beat.
Operating Results
Net revenue came in at $843.0 million, up 5.8% on a year-over-year basis and also above the Zacks Consensus Estimate of $816 million. Gross margin stood at 83.2% in the quarter under review compared with 82.6% in the prior-year quarter. Quarterly operating margin was 28% versus 25% in the prior-year quarter. At the end of the reported quarter, deferred revenues grossed $1.6 billion compared with $1.5 billion a year ago.
During the second quarter of 2016, Citrix generated approximately $228 million of cash from operations compared with $201 million for the same quarter in 2015. The company exited the quarter with $666.2 million in cash and cash equivalents compared with $368.5 million at the end of 2015.
Revenues by Product Mix
Product and Licenses revenues grossed $219.6 million, up 7% year over year. License updates and maintenance revenues totaled $386.9 million, up 3% year over year. Software-as-a-Service (SaaS) revenues came in at $201.6 million, reflecting a 14% increase from the prior-year quarter while Professional Services revenues declined 6% to $34.9 million in the reported quarter.
Revenues by Geography
Revenues in the Americas (both North & Latin America) were up 11% year over year. Revenues in the Europe, Africa and the Middle East region decreased by less than 2% while the same in the Asia-Pacific region fell 9% year over year.
Outlook for Third-Quarter 2016
Citrix expects net revenues in the band of $820 million to $830 million for the third quarter of 2016. Earnings per share (on an adjusted basis) are projected in the range of $1.18 to $1.20. The Zacks Consensus Estimate for third quarter revenue and earnings is $815.2 million and 95 cents respectively.
Outlook for 2016
Fort Lauderdale, FL-based company raised its revenue estimates to a band of $3.37 billion to $3.39 billion from $3.34 billion to $3.36 billion issued earlier for full-year 2016. Earnings per share (on an adjusted basis) are now projected in the range of $5.00 to $5.10 instead of $4.90 to $5.00. The Zacks Consensus Estimate for 2016 revenue and earnings is $3.35 billion and $4.06 respectively.
Zacks Rank & Key Picks
Citrix currently has a Zacks Rank #4 (Sell). Better-ranked stocks in the same space include Adobe Systems Inc. (ADBE - Free Report) , Proofpoint Inc. and Servicesource International Inc. . All the companies sport a Zack Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on ADBE - FREE