It has been about a month since the last earnings report for Citrix Systems . Shares have added about 0.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Citrix due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Citrix Q4 Earnings Increase Year Over Year
Citrix reported fourth-quarter 2021 non-GAAP earnings of $1.47 per share compared with $1.46 reported in the prior-year quarter.
Citrix delivered revenues of $851 million in fourth-quarter 2021, up 5% on a year-over-year basis.
Citrix management also announced that affiliates of Vista Equity Partners and Elliott Investment Management L.P are set to acquire the company (including all debt) in an all-cash deal worth $16.5 billion. Citrix is likely to be combined with one of Vista’s portfolio companies — TIBCO Software.
Citrix shareholders will receive $104.00 in cash per share, representing a 30% premium over the company’s unaffected five-day VWAP as of Dec 7, 2021 (which is the last trading day before speculation regarding a possible takeover transaction), noted Citrix.
The cash per share marks a 24% premium over the closing price on Dec 20, 2021 (the last trading day before media speculations pertaining to a prospective bid from Vista and Evergreen), further added the company.
Subject to regulatory and customary closing conditions, the transaction is expected to close by the mid of 2022. The transaction has been approved by the Citrix board of directors. Post the acquisition, Citrix will become a private company but will hold on to its brand name and retain headquarters at Fort Lauderdale, FL.
Quarter in Details
Product and license revenues (5% of total revenues) declined 21.1% year over year to $42.9 million.
Support and services revenues (41.6%) fell 14.7% on a year-over-year basis to $353.7 million.
Subscription revenues (53.4%) rallied 33.4% from the year-ago quarter’s figure to $454.2 million.
Margin Details
Total operating expenses increased 29.8% year over year to $702.2 million.
Non-GAAP operating margin was reported at 27.4%, up 10 bps year over year.
Balance Sheet & Cash Flow
As of Dec 31, 2021, Citrix had cash and cash equivalents and investments of $513.9 million compared with $464 million as of Sep 30, 2021. As of Dec 31, 2021, the long-term debt came in at $3.326 billion.
For 2021, cash flow from operations was reported at $671.7 million compared with $935.8 million in the prior year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted -13.33% due to these changes.
VGM Scores
Currently, Citrix has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. It comes with little surprise Citrix has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Citrix (CTXS) Up 0.3% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Citrix Systems . Shares have added about 0.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Citrix due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Citrix Q4 Earnings Increase Year Over Year
Citrix reported fourth-quarter 2021 non-GAAP earnings of $1.47 per share compared with $1.46 reported in the prior-year quarter.
Citrix delivered revenues of $851 million in fourth-quarter 2021, up 5% on a year-over-year basis.
Citrix management also announced that affiliates of Vista Equity Partners and Elliott Investment Management L.P are set to acquire the company (including all debt) in an all-cash deal worth $16.5 billion. Citrix is likely to be combined with one of Vista’s portfolio companies — TIBCO Software.
Citrix shareholders will receive $104.00 in cash per share, representing a 30% premium over the company’s unaffected five-day VWAP as of Dec 7, 2021 (which is the last trading day before speculation regarding a possible takeover transaction), noted Citrix.
The cash per share marks a 24% premium over the closing price on Dec 20, 2021 (the last trading day before media speculations pertaining to a prospective bid from Vista and Evergreen), further added the company.
Subject to regulatory and customary closing conditions, the transaction is expected to close by the mid of 2022. The transaction has been approved by the Citrix board of directors. Post the acquisition, Citrix will become a private company but will hold on to its brand name and retain headquarters at Fort Lauderdale, FL.
Quarter in Details
Product and license revenues (5% of total revenues) declined 21.1% year over year to $42.9 million.
Support and services revenues (41.6%) fell 14.7% on a year-over-year basis to $353.7 million.
Subscription revenues (53.4%) rallied 33.4% from the year-ago quarter’s figure to $454.2 million.
Margin Details
Total operating expenses increased 29.8% year over year to $702.2 million.
Non-GAAP operating margin was reported at 27.4%, up 10 bps year over year.
Balance Sheet & Cash Flow
As of Dec 31, 2021, Citrix had cash and cash equivalents and investments of $513.9 million compared with $464 million as of Sep 30, 2021. As of Dec 31, 2021, the long-term debt came in at $3.326 billion.
For 2021, cash flow from operations was reported at $671.7 million compared with $935.8 million in the prior year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted -13.33% due to these changes.
VGM Scores
Currently, Citrix has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. It comes with little surprise Citrix has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.