The Citrix Systems, Inc. (NASDAQ:CTXS) Yearly Results Are Out And Analysts Have Published New Forecasts

Citrix Systems, Inc. (NASDAQ:CTXS) shareholders are probably feeling a little disappointed, since its shares fell 4.0% to US$127 in the week after its latest yearly results. Citrix Systems reported US$3.2b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$4.00 beat expectations, being 2.6% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Citrix Systems

Taking into account the latest results, the most recent consensus for Citrix Systems from twelve analysts is for revenues of US$3.36b in 2021 which, if met, would be a modest 3.8% increase on its sales over the past 12 months. Per-share earnings are expected to rise 3.2% to US$4.13. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.33b and earnings per share (EPS) of US$4.06 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$159, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Citrix Systems, with the most bullish analyst valuing it at US$206 and the most bearish at US$140 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Citrix Systems' rate of growth is expected to accelerate meaningfully, with the forecast 3.8% revenue growth noticeably faster than its historical growth of 2.5%p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Citrix Systems is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Citrix Systems' revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$159, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Citrix Systems going out to 2023, and you can see them free on our platform here..

You still need to take note of risks, for example - Citrix Systems has 2 warning signs we think you should be aware of.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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