Citrix Profit Rises 38%; Guidance Raised, $400 Million Buyback Unveiled
January 27 2016 - 5:47PM
Dow Jones News
By Tess Stynes
Citrix Systems Inc. (CTXS) said its fourth-quarter earnings rose
38% on better-than-expected revenue growth, and the software maker
raised its 2016 earnings outlook.
The company's board also authorized the repurchase of an
additional $400 million of the company's shares. As of Dec. 31,
roughly $33 million remained under previous stock buyback
programs.
Shares rose 1.7% to $67 in recent after-hours trading as
per-share earnings, excluding certain one-time items, and revenue
beat expectations. The company also issued first-quarter guidance
mostly above Wall Street views.
For 2016, it raised its adjusted per-share earnings estimate to
$4.65 to $4.75, from its previous estimate for per-share profit of
$4.40 to $4.50.
For the current quarter, the company forecast adjusted per-share
earnings of 91 cents to 93 cents and revenue of $785 million to
$790 million. Analysts polled by Thomson Reuters expected per-share
profit of 90 cents and revenue of $786 million.
The Santa Clara, Calif., company makes workplace software that
allows employees to work from their own desktops or mobile devices
off a centralized data center, which is known as
virtualization.
Citrix said in November it plans to spin off part of its
meetings business into a new public company, cut jobs and slash
costs, months after activist investor Elliott Management Corp.
called for change at the software firm. Citrix plans to spin off
its GoTo business, which includes the GoTo Meeting software that
allows users to connect to business meetings from many devices.
Overall, Citrix reported a profit of $131.3 million, or 84 cents
a share, up from $95.2 million, or 58 cents a share, a year
earlier. Excluding stock-based compensation, restructuring-related
expenses, spinoff related expenses and other items, per-share
earnings rose to $1.66 from $1.10. Revenue increased 6.3% to $904.8
million.
Analysts polled by Thomson Reuters expected per-share profit of
$1.19 and revenue of $877 million.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
January 27, 2016 17:32 ET (22:32 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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