Stock Earnings Analysis: Citrix Systems, Inc. (NASDAQ:CTXS)

Citrix Systems, Inc. (NASDAQ:CTXS) reported earnings for the three months ended Mar2016 on April 20, 2016. The company earned $1.18 per share on revenue of $825.68M. Analysts had been modeling earning per share of $0.92 with $788.66M in revenue.

For the first quarter of fiscal year 2016, Citrix achieved revenue of $826 million, compared to $761 million in the first quarter of fiscal year 2015, representing 9 percent revenue growth.

Net income for the first quarter of fiscal year 2016 was $83 million, or $0.54 per diluted share, compared to $29 million, or $0.18 per diluted share, for the first quarter of fiscal year 2015. Net income for the first quarter of fiscal year 2016 includes restructuring charges of $46 million for severance and facility closing costs related to the 2015 restructuring program and $15 million in separation costs associated with the previously announced spin-off of the GoTo business. Net income for the first quarter of fiscal year 2015 includes restructuring charges of $34 million for severance and facility closing costs related to the 2015 restructuring program.

Non-GAAP net income for the first quarter of fiscal year 2016 was $184 million, or $1.18 per diluted share, compared to $106 million, or $0.65 per diluted share for the first quarter of fiscal year 2015. Non-GAAP net income for the first quarter of fiscal years 2016 and 2015 excludes the effects of stock-based compensation expense, amortization of acquired intangible assets, amortization of debt discount, restructuring charges, and the tax effects related to these items. Non-GAAP net income for the first quarter of fiscal year 2016 also excludes separation costs associated with the previously announced spin-off of the GoTo business and the tax effect related to this item. Non-GAAP net income for the first quarter of fiscal year 2015 also excludes a benefit from a patent lawsuit and the tax effect related to this item.

Citrix Systems, Inc. earnings per share showed an increasing trend of 35.5% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 543%.Analysts project EPS growth over the next 5 years at 14.46%. It has EPS annual growth over the past 5 fiscal years of 6.5% when sales grew 11.8. It reported 8.5% sales growth, and 200.2% EPS growth in the last quarter.

The stock is trading at $84.92, up 39.42% from 52-week low of $60.91. The stock trades down -5.64% from its peak of $90 and 3.78% above the consensus price target of $88.13. Its volume clocked up at 1.34 million shares which is lower than the average volume of 1.48 million shares. Its market capitalization currently stands at $13.26B.