Needham & Company Maintains a 'Hold' on Citrix Systems (CTXS); JuneQ Solid, Guidance Mixed
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Price: $103.90 --0%
Rating Summary:
12 Buy, 19 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 19 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Hold' on Citrix Systems (NASDAQ: CTXS).
Needham analyst says, "The Citrix results for JuneQ were better than in some other areas of software for networking, where performance of the group has been inconsistent this earnings season. Citrix had a solid beat on revenue and EPS, though guidance was somewhat mixed due to dilution from the recent Cloud.com acquisition (rumored as $200-300m deal, 0.05 dilutive in 2H11). We would characterize the tone of guidance to be “guarded”, although management was clear in saying Europe was up y/y, and North America was +16% y/y, and overall JuneQ performace was solid. The performance of desktop solutions (XenApp + XenDesktop) was good at +5% revenue y/y off a tough y/y compare, and management reiterated +16-18% license growth for desktop in CY11, suggesting acceleration in 2H11. We also note the outperformance of professional services, indicating to us that deployments of previous desktop licenses may be accelerating." (Needham raises FY12 EPS estimates from $2.72 to $2.75)
For more ratings news on Citrix Systems click here and for the rating history of Citrix Systems click here.
Shares of Citrix Systems closed at $70.94 yesterday.
Needham analyst says, "The Citrix results for JuneQ were better than in some other areas of software for networking, where performance of the group has been inconsistent this earnings season. Citrix had a solid beat on revenue and EPS, though guidance was somewhat mixed due to dilution from the recent Cloud.com acquisition (rumored as $200-300m deal, 0.05 dilutive in 2H11). We would characterize the tone of guidance to be “guarded”, although management was clear in saying Europe was up y/y, and North America was +16% y/y, and overall JuneQ performace was solid. The performance of desktop solutions (XenApp + XenDesktop) was good at +5% revenue y/y off a tough y/y compare, and management reiterated +16-18% license growth for desktop in CY11, suggesting acceleration in 2H11. We also note the outperformance of professional services, indicating to us that deployments of previous desktop licenses may be accelerating." (Needham raises FY12 EPS estimates from $2.72 to $2.75)
For more ratings news on Citrix Systems click here and for the rating history of Citrix Systems click here.
Shares of Citrix Systems closed at $70.94 yesterday.
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