[The Motley Fool] Citrix Systems, Inc. (NASDAQ:CTXS) (TREND ANALYSIS) It’s okay, Citrix Systems (NASDAQ: CTXS ) investors, you can exhale now. In an encouraging follow-up to last quarter’s mixed bag, shares of the software virtualization specialist are up 4% in after-hours trading Wednesday following its exemplary fourth-quarter report.
Quarterly revenue climbed 6.1% year-over-year to $851 million, which translated to adjusted net income of $180 million, or $1.10 per share. Analysts, on average, were only modeling earnings of $1.03 per share on sales of $844 million.
In addition, Citrix announced it will implement a restructuring program, “designed to increase strategic focus and operational efficiency.” The program will align Citrix around three business units — Workspace Services, Delivery Network, and Mobility Apps — and will unfortunately mean the elimination of 700 full-time and 200 contractor positions. At the same time, it should result in annualized pre-tax savings of $90 to $100 million. Before that happens, however, Citrix expects to incur pre-tax charges in 2015 of roughly $40 million to $45 million for employee severance packages and $9 million to $10 million related to the consolidation of leased facilities.
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Citrix Systems Inc (NASDAQ:CTXS) is currently trading 15.91% below its 52-week-high, 14.28% above its 52-week-low. The 1-year range for the stock is $53.63 – $72.89. Citrix Systems Inc (CTXS) has a price to earnings ratio of 41.65 versus Nasdaq average of 18.01. The stock price has under-performed the Nasdaq by 3.8%. CTXS is currently valued at $10 billion and closed the last trading session at $61.18. The stock has a 50-day moving average of $61.3 and a 200-day moving average of $65.86.
Citrix Systems Inc (CTXS) current short interest stands at 3.99 millions shares. It has increased by 5% from the same period of last month. Around 3% of the company’s shares, which are float, are short sold. With a 10-days average volume of 2.1 millions shares, the number of days required to cover the short positions stand at 2 days.
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There are currently thirty-seven analysts that cover CTXS. Of those thirty-seven, seventeen have a Buy rating, seventeen have a Hold rating and three have a Sell rating. On a consensus basis this yields to a Overweight rating. The consensus target price stands at $66.8.
A recent analyst activity consisted of FBR Capital reiterating their Outperform stance on October 23. FBR Capital decreased price target from $73 to $70. This corresponds to a 14.42% upside from the last closing price. On the date of report, the stock closed at $61.84.
Mizuho reiterated their Buy stance on October 23, and decreased their price target from $80 to $75. This corresponds to a 22.59% upside from the last closing price. On the date of report, the stock closed at $61.84.
Citrix Systems, Inc. provides virtualization, networking, and cloud infrastructure solutions worldwide. The company operates in two divisions, Enterprise and Service Provider, and SaaS division. The Enterprise division offers Desktop and Application Virtualization solutions, including XenDesktop, an integrated desktop virtualization system; XenApp to manage and mobilize Windows applications; XenClient, a bare-metal hypervisor; and Citrix Receiver for communicating with XenApp and XenDesktop. It also provides mobile solutions, such as XenMobile Enterprise that manages mobile devices, apps, and data; and XenMobile MDM, a mobile device management solution. In addition, this division offers cloud networking solutions comprising NetScaler, a Web application delivery controller; Bytemobile Smart Capacity solutions for traffic applications; and CloudBridge for connecting enterprise datacenters to end points. Further, it provides CloudPortal Business Manager to automate business and operations support services; CloudPlatform, an open source software platform; and XenServer, a virtualization platform. The SaaS division provides collaboration solutions comprising GoToMeeting product for online meetings, sales demonstrations, and collaborative gatherings; GoToWebinar, a do-it-yourself Webinar product; Podio, a social collaborative work platform; GoToTraining, an online training product; GoToMyPC, an online service that enables individuals to remotely use resources hosted on their desktop; and GoToAssist, a cloud-based IT support solution. This division also offers ShareFile, a cloud-based file sharing and storage solution. The company also provides upgrades, support, and maintenance services; and professional services. The company was formerly known as Citrus Systems, Inc. and changed its name to Citrix Systems, Inc. Citrix Systems, Inc. was founded in 1989 and is headquartered in Fort Lauderdale, Florida.