Earning Scorecard: Citrix Systems Inc - Analyst Blog
May 09 2011 - 6:45AM
Zacks
Citrix Systems Inc
(CTXS) reported blockbuster first quarter 2011 financial results,
where both earning per share (EPS) and revenue comprehensively beat
the Zacks Consensus Estimate. Global trends toward virtualization
and cloud computing facilitated the company’s impressive
results.
First Quarter
Highlights
First quarter 2011 total revenue
was $490.9 million, up 18% year over year and was well above the
Zacks Consensus Estimate of $475 million.
GAAP net income was $73.5 million
or 38 cents per share compared with a net income of $47.3 million
or 25 cents per share in the prior-year quarter. Quarterly adjusted
EPS of 41 cents handily beat the Zacks Consensus Estimate of 32
cents.
Gross margin in the first quarter
of 2011 was 88.3% compared with 88.2% in the year-ago quarter.
Operating expenses in the reported quarter were around $352.6
million compared with $313.5 million in the prior-year quarter.
Operating margin was 16.5% compared with 12.6% in the prior-year
quarter.
Agreements of
Analysts
Of the 12 analysts covering the
stock in the last 7 days, none revised their estimates upward or
downward for the second quarter as well as for the next quarter of
2011.
For fiscal 2011, out of the 12
analysts, none increased or decreased their estimates. However, for
2012, out of the 12 analysts, 1 revised its estimate upward, while
none moved in the opposite direction.
Currently, the Zacks Consensus EPS
Estimate for the second quarter of 2011 is pegged at 46 cents. The
projected annual growth rate is 48.39%. Similarly, for the third
quarter, the current Zacks Consensus EPS Estimate of 52 cents
reflects a year-over-year growth of 13.04%.
Magnitude of Estimate
Revisions
For the second quarter 2011, during
the last 7 days, the Zacks Consensus Estimate was in line with the
current estimate of 46 cents. Likewise, for the third quarter of
2011, the Zacks Consensus Estimate was in line with the current
estimate of 52 cents. For 2011, the Zacks Consensus Estimate dipped
by a penny from $2.07 to $2.06, in the last 7 days. Similarly, for
2012, the Zacks Consensus Estimate inched up by a penny from $2.36
to $2.37.
Earning
Surprises
With respect to earnings surprises,
the company notched up an average earnings surprise of 14.43% in
the trailing four quarters, implying that the company has exceeded
the Zacks Consensus Estimate by the same magnitude over the last
three quarters. The ongoing quarter and the upcoming quarter
contain upside potentials of (essentially a proxy for future
earnings surprises) 0.00% and 0.00% respectively. Likewise, for
fiscal 2011 and fiscal 2012, Zacks Consensus Estimates upside
potentials are 0.00% and 0.00%, respectively.
Our
Recommendation
Strong financial outlook coupled
with increasing trend for globalization and increased share
repurchase plan will drive the stock going forward. We believe that
the virtualization market will continue to flourish with desktop
virtualization as its core theme. This will sustain future growth
of both Citrix and its major competitor VMware
Inc. (VMW).
We, thus, maintain our long-term
Outperform recommendation forCitrix Systems. Currently, Citrix
Systems has a Zacks #1 Rank, implying a short-term Strong Buy
rating on the stock.
CITRIX SYS INC (CTXS): Free Stock Analysis Report
VMWARE INC-A (VMW): Free Stock Analysis Report
Zacks Investment Research
Citrix Systems (NASDAQ:CTXS)
Historical Stock Chart
From Sep 2024 to Oct 2024
Citrix Systems (NASDAQ:CTXS)
Historical Stock Chart
From Oct 2023 to Oct 2024