Citrix Systems Sees Q3 Adj. EPS Above Market; Lifts FY20 View

(RTTNews) - Digital workspace technology provider Citrix Systems Inc (CTXS), while reporting its strong growth in second-quarter profit, said Thursday that it now expects third-quarter earnings per share between $0.59 and $0.65 and adjusted earnings per share between $1.20 and $1.25, on revenues of $750 million to $760 million.

On average, 16 analysts polled by Thomson Reuters expect earnings of $1.23 per share on revenues of $773.8 million. Analysts' estimates typically exclude special items.

The third-quarter guidance reflects the company's expectation that subscription bookings as a percentage of product bookings will be in the range of 60 percent to 70 percent.

Further, for fiscal 2020, the company now expects earnings per share between $3.48 and $3.69 and adjusted earnings per share between $5.65 and $5.85, on revenues of $3.18 billion to $3.21 billion.

The company previously expected full year adjusted earnings of $5.40 to $5.60 per share and revenues of $3.10 billion to $3.16 billion.

Analysts expect earnings of $5.63 per share on revenues of $3.18 million

For the year, subscription bookings as a percentage of product bookings are expected to increase to approximately 65 percent to 75 percent for the full year of 2020 from 62 percent in 2019, and exiting the year at around 80 percent.

Adjusted operating margin is expected to decline approximately 100 basis points year-over-year.

For the second quarter, earnings totaled $112.91 million, or $0.90 per share, compared to $93.50 million, or $0.70 per share, in last year's second quarter. Adjusted earnings of $191.80 million or $1.53 per share for the period.

Citrix's digital workspace technology that allows people to work in remote places with high level security has benefited the company during the Covid-19 pandemic, as many companies are forced to let their employees work from home.

The company's revenue for the quarter rose 6.7 percent to $798.93 million from $748.70 million last year.

In pre-market activity on Nasdaq, Citrix shares were gaining around 1.7 percent to trade at $170.