It has been about a month since the last earnings report for Citrix Systems . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Citrix due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Second-Quarter Results
Citrix Systems Inc. delivered second-quarter 2018 adjusted earnings of $1.28 per share, beating the Zacks Consensus Estimate of $1.20 per share. The figure surged 24.3% on a year-over-year basis.
Revenues increased 7.1% from the year-ago quarter to $742.4 million and comfortably surpassed the Zacks Consensus Estimate of $717 million.
Product and license (26% of total revenues) increased 1% year over year to $192.6 million. Subscription (15%) revenues surged 49% from the year-ago to $110.8 million. Support and services (59%) revenues rose 3% on a year-over-year basis to $439.5 million.
Revenues as per Product Group
Workspace services increased 7% year over year to $455 million. Management stated that 50% of new product bookings were subscription based.
Networking revenues rose 5% from the year-ago to $207 million.
Content Collaboration revenues climbed 13% on a year-over-year basis to $46 million.
Geographic Revenues
Revenues in Americas increased 6.7% year over year to $430.2 million. There were 60 transactions worth more than $1 million in the reported quarter.
Europe, Middle East and Africa (EMEA) revenues advanced 7.7% from the year-ago quarter to $234.1 million. There were 15 transactions worth more than $1 million in the reported quarter.
Asia-Pacific and Japan (APJ) revenues increased 7.1% from the year-ago quarter to $78.1million. There were eight transactions worth more than $1 million in the reported quarter.
Operating Details
Non-GAAP gross margin during the quarter came in at 87%.
Non-GAAP operating margin expanded 400 basis points from the year-ago quarter to 30%.
Balance Sheet & Cash Flow
As of Jun 30, 2018, cash and cash equivalents were $1.021 billion as compared with $954.7 million in the previous quarter. Cash flow from operations was $170 million for the trailing 12 months.
As of Jun 30, 2018, deferred revenues grossed $1.7 billion, flat quarter over quarter.
Citrix repurchased approximately 1.8 million shares during the second quarter. Moreover, roughly $500 million is still remaining under share repurchase authorization.
Guidance
For third-quarter 2018, Citrix anticipates revenues between $715 million and $725 million.
Non-GAAP earnings are expected between $1.23 and $1.26 per share.
Citrix raised guidance for fiscal 2018. The company now expects revenues between $2.92 billion and $2.95 billion (up from previous guidance of $2.88 billion and $2.91 billion).
Non-GAAP operating margin is still anticipated to be in the range of 30-31%. Moreover, non-GAAP earnings are now expected between $5.30 and $5.40 per share (previously $5.20 and $5.30 per share).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, Citrix has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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.
Based on our scores, the stock is equally suitable for value, growth, and momentum investors.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Citrix has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Citrix (CTXS) Down 0.9% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Citrix Systems . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Citrix due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Second-Quarter Results
Citrix Systems Inc. delivered second-quarter 2018 adjusted earnings of $1.28 per share, beating the Zacks Consensus Estimate of $1.20 per share. The figure surged 24.3% on a year-over-year basis.
Revenues increased 7.1% from the year-ago quarter to $742.4 million and comfortably surpassed the Zacks Consensus Estimate of $717 million.
Product and license (26% of total revenues) increased 1% year over year to $192.6 million. Subscription (15%) revenues surged 49% from the year-ago to $110.8 million. Support and services (59%) revenues rose 3% on a year-over-year basis to $439.5 million.
Revenues as per Product Group
Workspace services increased 7% year over year to $455 million. Management stated that 50% of new product bookings were subscription based.
Networking revenues rose 5% from the year-ago to $207 million.
Content Collaboration revenues climbed 13% on a year-over-year basis to $46 million.
Geographic Revenues
Revenues in Americas increased 6.7% year over year to $430.2 million. There were 60 transactions worth more than $1 million in the reported quarter.
Europe, Middle East and Africa (EMEA) revenues advanced 7.7% from the year-ago quarter to $234.1 million. There were 15 transactions worth more than $1 million in the reported quarter.
Asia-Pacific and Japan (APJ) revenues increased 7.1% from the year-ago quarter to $78.1million. There were eight transactions worth more than $1 million in the reported quarter.
Operating Details
Non-GAAP gross margin during the quarter came in at 87%.
Non-GAAP operating margin expanded 400 basis points from the year-ago quarter to 30%.
Balance Sheet & Cash Flow
As of Jun 30, 2018, cash and cash equivalents were $1.021 billion as compared with $954.7 million in the previous quarter. Cash flow from operations was $170 million for the trailing 12 months.
As of Jun 30, 2018, deferred revenues grossed $1.7 billion, flat quarter over quarter.
Citrix repurchased approximately 1.8 million shares during the second quarter. Moreover, roughly $500 million is still remaining under share repurchase authorization.
Guidance
For third-quarter 2018, Citrix anticipates revenues between $715 million and $725 million.
Non-GAAP earnings are expected between $1.23 and $1.26 per share.
Citrix raised guidance for fiscal 2018. The company now expects revenues between $2.92 billion and $2.95 billion (up from previous guidance of $2.88 billion and $2.91 billion).
Non-GAAP operating margin is still anticipated to be in the range of 30-31%. Moreover, non-GAAP earnings are now expected between $5.30 and $5.40 per share (previously $5.20 and $5.30 per share).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, Citrix has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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.
Based on our scores, the stock is equally suitable for value, growth, and momentum investors.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Citrix has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.