The 10-second takeaway
For the quarter ended March 31 (Q1), Citrix Systems beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped.
Margins shrank across the board.
Citrix Systems chalked up revenue of $589.5 million. The 29 analysts polled by S&P Capital IQ looked for revenue of $562.1 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $490.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.59. The 29 earnings estimates compiled by S&P Capital IQ predicted $0.51 per share on the same basis. GAAP EPS of $0.36 for Q1 were 5.3% lower than the prior-year quarter's $0.38 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 88.2%, 270 basis points worse than the prior-year quarter. Operating margin was 13.7%, 290 basis points worse than the prior-year quarter. Net margin was 11.6%, 340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $603.8 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $2.51 billion. The average EPS estimate is $2.73.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 448 members rating the stock outperform and 68 members rating it underperform. Among 158 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 140 give Citrix Systems a green thumbs-up, and 18 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 $80.82.
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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.