Citrix Systems (CTXS) Reported Sizeable 3Q EPS Beat; UBS Remains Neutral
UBS reiterated a Neutral rating on Citrix Systems (NASDAQ: CTXS), and raised the price target to $73.00 (from $70.00), following the company's 3Q15 earnings report. CTXS delivered a $27M revenue Beat, as well as a $0.19 EPS upside to Street estimates.
Analyst Brent Thill commented, "CTXS delivered a sizeable Q3 rev/EPS beat (by $27M/$0.19) on modest expectations resulting from transitional headwinds. License revenue also rebounded, +7% y/y (vs. negative growth in past 4 qtrs). The Q3 call also marked the start of a new era at CTXS, w/ Bob Calderoni assuming the role of Interim President and CEO while a formal search for a more permanent CEO continues. The biggest news for the future of the company is likely still to come, w/ an investor update scheduled for mid-November, in order to discuss the results of recent Operations Committee discussions, which included a comprehensive review of CTXS' product portfolio, cost and capital structure, and evaluation of strategic alternatives for the GoTo and ByteMobile businesses. Despite the better than expected Q3 performance, we continue to worry about the fundamentals of the core business, (license revenue down 6% YTD) and question what role CTXS ultimately plays in the shift to the cloud."
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Shares of Citrix Systems closed at $71.92 yesterday.