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Citrix Systems (CTXS) Q3 Earnings: A Surprise in Store?

Citrix Systems Inc. CTXS is scheduled to report third-quarter 2016 results on Oct 19, after the market closes .

Last quarter, the company recorded a positive 7.61% earnings surprise. Moreover, the company beat estimates in each of the last four quarters with the average earnings surprise at 28.97%. Let's see how things are shaping up for this announcement.

Factors at Play this Quarter

A major positive for Citrix is its impressive product portfolio. The company regularly innovates and employs cutting-edge technology to enhance its product portfolio. In fact, it launched a string of new products and enhancements especially for its NetScaler App. The company's desktop virtualization segment is also expected to drive top-line growth.

However, the company's extensive global presence exposes it to foreign exchange volatility. Earnings might also be affected by slow-paced economic growth in major economies as well as intense competition from peers.

Earnings Whispers

Our proven model does not conclusively show that Citrix is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.

Zacks ESP: Citrix has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 97 cents.

Zacks Rank: Citrix carries a Zacks Rank #3 (Hold).

Conversely, we caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

CITRIX SYS INC Price and EPS Surprise

CITRIX SYS INC Price and EPS Surprise | CITRIX SYS INC Quote

Stocks to Consider

Here are stocks you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter.

Netapp Inc. NTAP has an Earnings ESP of +2.63% and a Zacks Rank #1. The company is expected to report second-quarter fiscal 2017 earnings on Nov 16.You can see the complete list of today's Zacks #1 Rank stocks here.

Sito Mobile Ltd. SITO has an Earnings ESP of +100% and a Zacks Rank #1. The company is expected to report third-quarter earnings on Nov 22.

Xilinx Inc. XLNX has an Earnings ESP of +1.85% and a Zacks Rank #2. The company is expected to report its second quarter fiscal 2017 earnings on Oct 19.

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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.

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