Markets

Citrix (CTXS) Tops Q2 Earnings & Revenues, Raises 18' View

Citrix Systems Inc. CTXS delivered second-quarter 2018 adjusted earnings of $1.28 per share, beating the Zacks Consensus Estimate of $1.20 per share. The figure surged 24.3% on a year-over-year basis.

Revenues increased 7.1% from the year-ago quarter to $742.4 million and comfortably surpassed the Zacks Consensus Estimate of $717 million.

Citrix Systems, Inc. Price

Citrix Systems, Inc. Price | Citrix Systems, Inc. Quote

Product and license (26% of total revenues) increased 1% year over year to $192.6 million. Subscription (15%) revenues surged 49% from the year-ago to $110.8 million. Support and services (59%) revenues rose 3% on a year-over-year basis to $439.5 million.

Revenues as per Product Group

Workspace services increased 7% year over year to $455 million. Management stated that 50% of new product bookings were subscription based.

Networking revenues rose 5% from the year-ago to $207 million.

Content Collaboration revenues climbed 13% on a year-over-year basis to $46 million.

Geographic Revenues

Revenues in Americas increased 6.7% year over year to $430.2 million. There were 60 transactions worth more than $1 million in the reported quarter.

Europe, Middle East and Africa (EMEA) revenues advanced 7.7% from the year-ago quarter to $234.1 million. There were 15 transactions worth more than $1 million in the reported quarter.

Asia-Pacific and Japan (APJ) revenues increased 7.1% from the year-ago quarter to $78.1million. There were eight transactions worth more than $1 million in the reported quarter.

Operating Details

Non-GAAP gross margin during the quarter came in at 87%.

Non-GAAP operating margin expanded 400 basis points from the year-ago quarter to 30%.

Balance Sheet & Cash Flow

As of Jun 30, 2018, cash and cash equivalents were $1.021 billion as compared with $954.7 million in the previous quarter. Cash flow from operations was $170 million for the trailing 12 months.

As of Jun 30, 2018, deferred revenues grossed $1.7 billion, flat quarter over quarter.

Citrix repurchased approximately 1.8 million shares during the second quarter. Moreover, roughly $500 million is still remaining under share repurchase authorization.

Guidance

For third-quarter 2018, Citrix anticipates revenues between $715 million and $725 million. The Zacks Consensus Estimate for revenues is currently pegged at $711.3 million.

Non-GAAP earnings are expected between $1.23 and $1.26 per share. The Zacks Consensus Estimate for earnings is pegged at $1.22 per share.

Citrix raised guidance for fiscal 2018. The company now expects revenues between $2.92 billion and $2.95 billion (up from previous guidance of $2.88 billion and $2.91 billion). The Zacks Consensus Estimate for revenues currently stands at $2.91 billion.

Non-GAAP operating margin is still anticipated to be in the range of 30-31%. Moreover, non-GAAP earnings are now expected between $5.30 and $5.40 per share (previously $5.20 and $5.30 per share). The Zacks Consensus Estimate for earnings is currently pegged at $5.27 per share.

Zacks Rank & Stocks to Consider

Currently, Citrix carries a Zacks Rank #3 (Hold).

Intel Corporation INTC , Microsoft Corp. MSFT and Vishay Intertechnology, Inc. VSH are stocks worth considering in the broader technology sector. All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Long-term earnings growth rate for Intel, Microsoft and Vishay is currently pegged at 8.4%, 12.3% and 7.9%, respectively.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Microsoft Corporation (MSFT): Free Stock Analysis Report

Citrix Systems, Inc. (CTXS): Free Stock Analysis Report

Intel Corporation (INTC): Free Stock Analysis Report

Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CTXS INTC MSFT VSH

Other Topics

Earnings Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More