Yesterday, leading cloud computing solutions provider
Citrix Systems Inc.
) declared a disappointing forecast for the third quarter of
2013, which ended on Sep 30. As a result, in the after market
trade on NASDAQ, the share price of Citrix was down $8.72
(13.08%) to $57.94. Citrix currently has a Zacks Rank #3
The company stated that its third-quarter 2013 total revenue
will be within the range of $710-$712 million, significantly
below its earlier guidance of $730-$740 million and also below
the current Zacks Consensus Estimate of $737 million.
GAAP earnings per share (EPS) are expected to be 39 cents to
40 cents compared with the prior guidance of 41 cents to 42
cents. Non-GAAP EPS are expected to be 68 cents to 69 cents
against the prior estimation of 72 cents to 73 cents. Including
26 cents of stock-based compensation expense, the non-GAAP EPS of
46.5 cents is well below the current Zacks Consensus Estimate of
Citrix cited reduction in IT spending and delay in securing
large orders as the primary reasons for this tepid guidance. The
broader infrastructure software manufacturing industry is going
through a volatile phase. The global economy is still suffering
from fluctuations and we are not completely out of woods. Various
geo-political concerns in the European and African countries have
slowed the momentum of economic recovery.
In the last month,
Red Hat Inc.
) provided near-term weak financial guidance. Citrix's closest
) is also facing market fluctuations.
At present, Citrix is facing two pronged problems (1)
continuation of global macroeconomic headwinds is slowing the
momentum of new license sales and (2) growing demand for tablets
instead of PCs or notebooks. This scenario may further jeopardize
Citrix's long-term financial results.
CITRIX SYS INC (CTXS): Free Stock Analysis
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RED HAT INC (RHT): Free Stock Analysis Report
VMWARE INC-A (VMW): Free Stock Analysis
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