The 10-second takeaway
For the quarter ended March 31 (Q1), Citrix Systems met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased. GAAP earnings per share shrank.
Margins shrank across the board.
Citrix Systems reported revenue of $672.9 million. The 31 analysts polled by S&P Capital IQ expected to see revenue of $677.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $589.5 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 $0.62. The 33 earnings estimates compiled by S&P Capital IQ averaged $0.63 per share. Non-GAAP EPS of $0.62 for Q1 were 5.1% higher than the prior-year quarter's $0.59 per share. GAAP EPS of $0.32 for Q1 were 11% lower than the prior-year quarter's $0.36 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 86.6%, 160 basis points worse than the prior-year quarter. Operating margin was 8.4%, 620 basis points worse than the prior-year quarter. Net margin was 8.9%, 270 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $708.0 million. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $2.96 billion. The average EPS estimate is $3.13.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 471 members out of 536 rating the stock outperform, and 65 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 126 give Citrix Systems a green thumbs-up, and 15 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 $82.88.
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