Citrix Systems Earnings: Here’s Why the Stock is Falling Now

Citrix Systems, Inc. (NASDAQ:CTXS) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 7.63%.

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Citrix Systems, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 5.08% to $0.62 in the quarter versus EPS of $0.59 in the year-earlier quarter.

Revenue: Rose 14.16% to $673 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Citrix Systems, Inc. reported adjusted EPS income of $0.62 per share. By that measure, the company missed the mean analyst estimate of $0.63. It missed the average revenue estimate of $676.9 million.

Quoting Management: “In spite of the macro factors negatively impacting IT spending, we executed well in Q1,” said Mark Templeton, president and chief executive officer for Citrix. “Consistently, CIOs everywhere tell me they are challenged by the transformation, consumerization and fragmentation taking place in computing. These forces are creating even more interest in mobility and cloud services.”

Key Stats (on next page)…

Revenue decreased 9.05% from $740 million in the previous quarter. EPS decreased 31.11% from $0.90 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.72 to a profit $0.70. For the current year, the average estimate is a profit of $3.14, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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