Citrix Systems reported fourth quarter 2021 earnings of $1.47 per share, up from $1.46 in the previous year. Revenue for the quarter was $851 million, a 5% increase from the same period last year. The company will be acquired by affiliates of Vista Equity Partners and Elliott Investment Management LP in a $16.5 billion cash transaction. Citrix shareholders will receive $104.00 per share, representing a 30% premium. The deal is expected to close in mid-2022 and has been approved by Citrix’s board of directors. Following the acquisition, Citrix will become a private company but will retain its brand and headquarters in Fort Lauderdale, Florida.
Citrix shares fell 3.7% in premarket trading following the fourth quarter results and acquisition announcement. Product and licensing revenue decreased by 21.1% year over year, while support and services revenue fell by 14.7%, and subscription revenue increased by 33.4%. Total operating expenses increased by 29.8% year over year, with a non-GAAP operating margin of 27.4%. As of December 31, 2021, Citrix had cash, cash equivalents, and investments of $513.9 million and long-term debt of $3,326 million.
Citrix currently has a Zacks Rank #3 (Hold). Other top-ranked stocks in the technology sector include Salesforce, Hewlett Packard, and Cadence Design Systems. Salesforce has a Zacks Rank #1 (Strong Buy) with a Zacks Consensus Estimate for fiscal 2022 earnings at $4.68 per share. Hewlett Packard has a Zacks Rank #1 as well, with a Consensus Estimate of $2.03 per share for fiscal 2022. Cadence has a Zacks Rank #2 (Buy) with a Consensus Estimate for 2021 earnings at $3.25 per share. Salesforce, Hewlett Packard, and Cadence have all had positive earnings surprises in recent quarters.
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