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A Look at Citrix Systems’ 2018 and Beyond

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CTXS’s performance

Citrix Systems’ (CTXS) revenue fell at a four-year CAGR (compound annual growth rate) of 1% to $2.8 billion in 2017. Its net income rose at a four-year CAGR of 7% to $744 million.

Citrix’s revenue rose 4% to $1.4 billion in the first half of 2018. Subscriptions, products and licenses, and support and services constituted 15%, 25%, and 60% of its revenue, respectively. The company’s cloud strategy played a crucial role in its growth.

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CTXS projections

Revenue projections for Citrix’s 2018, 2019, and 2020 are $2.9 billion, $3.1 billion, and $3.2 billion, respectively. It’s expected to see net incomes of $746.7 million, $790.5 million, and $867.4 million, respectively, in these years. 

The stock has “strong buy,” “buy,” and “hold” recommendations from three, two, and 14 analysts, respectively. It has “sell” and “strong sell” recommendations from two analysts and one analyst, respectively. Its PE projections are 19.4x, 17.5x, and 15.3x, respectively.

The stock against the indexes

At the end of last week, Citrix stock had beaten the NASDAQ Composite Index in the last five days, in the last three months, in the last year, and YTD (year-to-date). The stock had been bested by the S&P 500 Application Software Index in the last three months, in the last year, and YTD. It closed at a 13% discount to its 52-week high and a 28% premium to its 52-week low at the end of the week.

Recent events

Citrix recently extended its support for Samsung DeX-enabled smartphones and tablets. Samsung DeX enables the user to turn a phone into a PC-like experience. According to Citrix, its aim is to improve the accessibility of its technology in terms of enhanced workspace automation.

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