The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Citrix Systems beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased.
Margins dropped across the board.
Citrix Systems tallied revenue of $740.0 million. The 32 analysts polled by S&P Capital IQ looked for sales of $705.9 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $619.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.90. The 33 earnings estimates compiled by S&P Capital IQ forecast $0.84 per share. GAAP EPS of $0.60 for Q4 were 5.3% higher than the prior-year quarter's $0.57 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 87.3%, 230 basis points worse than the prior-year quarter. Operating margin was 19.7%, 250 basis points worse than the prior-year quarter. Net margin was 15.4%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $669.1 million. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $2.91 billion. The average EPS estimate is $3.12.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 465 members out of 529 rating the stock outperform, and 64 members rating it underperform. Among 152 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 138 give Citrix Systems a green thumbs-up, and 14 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 $79.54.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.