The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Citrix Systems met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and earnings per share improved significantly.
Gross margins contracted, operating margins grew, and net margins dropped.
Citrix Systems chalked up revenue of $619.4 million. The 31 analysts polled by S&P Capital IQ expected a top line of $618.5 million. Sales were 17% higher than the prior-year quarter's $529.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.78. The 32 earnings estimates compiled by S&P Capital IQ averaged $0.76 per share on the same basis. GAAP EPS of $0.58 for Q4 were 16% higher than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 89.6%, 90 basis points worse than the prior-year quarter. Operating margin was 21.9%, 10 basis points better than the prior-year quarter. Net margin was 17.6%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $562.4 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $2.51 billion. The average EPS estimate is $2.72.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 449 members out of 520 rating the stock outperform, and 71 members rating it underperform. Among 160 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 144 give Citrix Systems a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Citrix Systems is outperform, with an average price target of $80.04.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.