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.
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.
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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.
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 >>
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 >>
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