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Citrix (CTXS) to Report Q1 Earnings: Is a Beat in the Cards?
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Citrix Systems, Inc. is set to report first-quarter 2020 results on Apr 23.
For the to-be-reported quarter, the company expects revenues in the range of $730-$740 million, while non-GAAP adjusted earnings are expected to be between $1.15 and $1.20 per share.
The Zacks Consensus Estimate for revenues is pegged at $734.3 million, which indicates a growth of 2.1% from the year-ago quarter’s reported figure.
The consensus mark for first-quarter earnings has been steady at $1.17 per share in the past 30 days. The estimate indicates a year-over-year decline of 7.9% from the year ago quarter’s figure.
Notably, the company beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once. Citrix has a trailing four-quarter positive earnings surprise of 6.3%, on average.
Let’s see how things have shaped up prior to this announcement.
Our proven model conclusively predicts an earnings beat for Citric this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Citrix has an Earnings ESP of +1.58% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Likely to Impact in Q1
Citrix’s first-quarter performance is expected to have gained from robust adoption of subscription-based services. Transition of services to the cloud has been a fueling factor for subscription revenues. Notably, SaaS revenues form the most significant part of subscription transition.
Moreover, solid adoption of hybrid cloud offerings is likely to have contributed to first-quarter performance. Notably, the company has extended its partnership with Amazon Web Services (AWS) to enhance the capabilities of its hybrid cloud solution — Citrix ADC.
Further, Citrix is striving to capitalize on increasing popularity of enterprise workspace solutions. Markedly, it has introduced the Citrix Workspace on Google Cloud, which gives G Suite users access to Citrix’s Workspace platform. The company has also worked with Microsoft to build Citrix Managed Desktops, a fully-packaged Desktop-as-a-service (DaaS) solution.
These partnerships are likely to have expanded the company’s clientele which in turn is expected to have boosted top-line growth during the first quarter.
The growing workspace trends of Bring Your Own Devices (BYOD) and increasing number of mobile workers are expected to have strengthened its desktop virtualization solutions’ user base in the first two months of the to-be-reported quarter.
Meanwhile, surge in work-from-home cases in March due to the coronavirus pandemic is likely to have boosted the adoption of its desktop virtualization solutions during the quarter under review.
Increasing popularity of the company's products instill confidence in the stock. Notably, shares of Citrix have returned 35.6% in the year-to-date period, outperforming the industry’s rally of 6.9%.
Additionally, the company introduced an updated version of Workspace platform which added innovative “intelligence” analytics capabilities to the platform. The incremental adoption of the new platform is likely to have driven the company’s first-quarter performance.
However, the company has been facing sluggish demand in its product and license business. Also, increasing investments on portfolio expansion, product enhancements and are anticipated to have kept margins under pressure in the to-be reported quarter.
Other Stocks to Consider
Here are some other stocks you may consider as our proven model shows that these also have the right mix of elements to beat estimates this time:
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +8.17% and a Zacks Rank of 2.
Axcelis Technologies, Inc. (ACLS - Free Report) has an Earnings ESP of +23.29% and a Zacks Rank of 2.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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Citrix (CTXS) to Report Q1 Earnings: Is a Beat in the Cards?
Citrix Systems, Inc. is set to report first-quarter 2020 results on Apr 23.
For the to-be-reported quarter, the company expects revenues in the range of $730-$740 million, while non-GAAP adjusted earnings are expected to be between $1.15 and $1.20 per share.
The Zacks Consensus Estimate for revenues is pegged at $734.3 million, which indicates a growth of 2.1% from the year-ago quarter’s reported figure.
The consensus mark for first-quarter earnings has been steady at $1.17 per share in the past 30 days. The estimate indicates a year-over-year decline of 7.9% from the year ago quarter’s figure.
Notably, the company beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once. Citrix has a trailing four-quarter positive earnings surprise of 6.3%, on average.
Let’s see how things have shaped up prior to this announcement.
Citrix Systems, Inc. Price and EPS Surprise
Citrix Systems, Inc. price-eps-surprise | Citrix Systems, Inc. Quote
Favorable ESP
Our proven model conclusively predicts an earnings beat for Citric this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Citrix has an Earnings ESP of +1.58% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Likely to Impact in Q1
Citrix’s first-quarter performance is expected to have gained from robust adoption of subscription-based services. Transition of services to the cloud has been a fueling factor for subscription revenues. Notably, SaaS revenues form the most significant part of subscription transition.
Moreover, solid adoption of hybrid cloud offerings is likely to have contributed to first-quarter performance. Notably, the company has extended its partnership with Amazon Web Services (AWS) to enhance the capabilities of its hybrid cloud solution — Citrix ADC.
Further, Citrix is striving to capitalize on increasing popularity of enterprise workspace solutions. Markedly, it has introduced the Citrix Workspace on Google Cloud, which gives G Suite users access to Citrix’s Workspace platform. The company has also worked with Microsoft to build Citrix Managed Desktops, a fully-packaged Desktop-as-a-service (DaaS) solution.
These partnerships are likely to have expanded the company’s clientele which in turn is expected to have boosted top-line growth during the first quarter.
The growing workspace trends of Bring Your Own Devices (BYOD) and increasing number of mobile workers are expected to have strengthened its desktop virtualization solutions’ user base in the first two months of the to-be-reported quarter.
Meanwhile, surge in work-from-home cases in March due to the coronavirus pandemic is likely to have boosted the adoption of its desktop virtualization solutions during the quarter under review.
Increasing popularity of the company's products instill confidence in the stock. Notably, shares of Citrix have returned 35.6% in the year-to-date period, outperforming the industry’s rally of 6.9%.
Additionally, the company introduced an updated version of Workspace platform which added innovative “intelligence” analytics capabilities to the platform. The incremental adoption of the new platform is likely to have driven the company’s first-quarter performance.
However, the company has been facing sluggish demand in its product and license business. Also, increasing investments on portfolio expansion, product enhancements and are anticipated to have kept margins under pressure in the to-be reported quarter.
Other Stocks to Consider
Here are some other stocks you may consider as our proven model shows that these also have the right mix of elements to beat estimates this time:
Pixelworks, Inc. (PXLW - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +8.17% and a Zacks Rank of 2.
Axcelis Technologies, Inc. (ACLS - Free Report) has an Earnings ESP of +23.29% and a Zacks Rank of 2.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>