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Citrix (CTXS) Q4 Earnings Increase, Set to be Taken Over
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Citrix Systems reported fourth-quarter 2021 non-GAAP earnings of $1.47 per share compared with $1.46 reported in the prior-year quarter.
Citrix delivered revenues of $851 million in fourth-quarter 2021, up 5% on a year-over-year basis.
Citrix management also announced that affiliates of Vista Equity Partners and Elliott Investment Management L.P are set to acquire the company (including all debt) in an all-cash deal worth $16.5 billion. Citrix is likely to be combined with one of Vista’s portfolio companies — TIBCO Software.
Citrix shareholders will receive $104.00 in cash per share, representing a 30% premium over the company’s unaffected five-day VWAP as of Dec 7, 2021 (which is the last trading day before speculation regarding a possible takeover transaction), noted Citrix.
The cash per share marks a 24% premium over the closing price on Dec 20, 2021 (the last trading day before media speculations pertaining to a prospective bid from Vista and Evergreen), further added the company.
Subject to regulatory and customary closing conditions, the transaction is expected to close by the mid of 2022. The transaction has been approved by the Citrix board of directors. Post the acquisition, Citrix will become a private company but will hold on to its brand name and retain headquarters at Fort Lauderdale, FL.
Shares of Citrix were down 3.7% in the pre-market trading on Jan 31, following fourth-quarter 2021 results and the takeover announcement.
Quarter in Details
Product and license revenues (5% of total revenues) declined 21.1% year over year to $42.9 million.
Support and services revenues (41.6%) fell 14.7% on a year-over-year basis to $353.7 million.
Subscription revenues (53.4%) rallied 33.4% from the year-ago quarter’s figure to $454.2 million.
Margin Details
Total operating expenses increased 29.8% year over year to $702.2 million.
Non-GAAP operating margin was reported at 27.4%, up 10 bps year over year.
Balance Sheet & Cash Flow
As of Dec 31, 2021, Citrix had cash and cash equivalents and investments of $513.9 million compared with $464 million as of Sep 30, 2021. As of Dec 31, 2021, the long-term debt came in at $3.326 billion.
For 2021, cash flow from operations was reported at $671.7 million compared with $935.8 million in the prior year.
The Zacks Consensus Estimate for Salesforce’s fiscal 2022 earnings is pegged at $4.68 per share. The long-term earnings growth rate of the company is pegged at 16.8%.
Salesforce’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 44.2%. Shares of CRM have declined 2.7% in the past year.
The Zacks Consensus Estimate for Hewlett Packard’s fiscal 2022 earnings is pegged at $2.03 per share, unchanged in the past 60 days. The long-term earnings growth rate of the company is pegged at 5.8%.
Hewlett Packard’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 14.4%. Shares of HPE have rallied 34.5% in the past year.
The Zacks Consensus Estimate for Cadence 2021 earnings is pegged at $3.25 per share. The long-term earnings growth rate of the company is pegged at 18.2%.
Cadence’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11%. Shares of CDNS have returned 8.2% in the past year.
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Citrix (CTXS) Q4 Earnings Increase, Set to be Taken Over
Citrix Systems reported fourth-quarter 2021 non-GAAP earnings of $1.47 per share compared with $1.46 reported in the prior-year quarter.
Citrix delivered revenues of $851 million in fourth-quarter 2021, up 5% on a year-over-year basis.
Citrix management also announced that affiliates of Vista Equity Partners and Elliott Investment Management L.P are set to acquire the company (including all debt) in an all-cash deal worth $16.5 billion. Citrix is likely to be combined with one of Vista’s portfolio companies — TIBCO Software.
Citrix shareholders will receive $104.00 in cash per share, representing a 30% premium over the company’s unaffected five-day VWAP as of Dec 7, 2021 (which is the last trading day before speculation regarding a possible takeover transaction), noted Citrix.
The cash per share marks a 24% premium over the closing price on Dec 20, 2021 (the last trading day before media speculations pertaining to a prospective bid from Vista and Evergreen), further added the company.
Subject to regulatory and customary closing conditions, the transaction is expected to close by the mid of 2022. The transaction has been approved by the Citrix board of directors. Post the acquisition, Citrix will become a private company but will hold on to its brand name and retain headquarters at Fort Lauderdale, FL.
Citrix Systems, Inc. Price
Citrix Systems, Inc. price | Citrix Systems, Inc. Quote
Shares of Citrix were down 3.7% in the pre-market trading on Jan 31, following fourth-quarter 2021 results and the takeover announcement.
Quarter in Details
Product and license revenues (5% of total revenues) declined 21.1% year over year to $42.9 million.
Support and services revenues (41.6%) fell 14.7% on a year-over-year basis to $353.7 million.
Subscription revenues (53.4%) rallied 33.4% from the year-ago quarter’s figure to $454.2 million.
Margin Details
Total operating expenses increased 29.8% year over year to $702.2 million.
Non-GAAP operating margin was reported at 27.4%, up 10 bps year over year.
Balance Sheet & Cash Flow
As of Dec 31, 2021, Citrix had cash and cash equivalents and investments of $513.9 million compared with $464 million as of Sep 30, 2021. As of Dec 31, 2021, the long-term debt came in at $3.326 billion.
For 2021, cash flow from operations was reported at $671.7 million compared with $935.8 million in the prior year.
Zacks Rank & Stocks to Consider
Currently, Citrix carries a Zacks Rank #3 (Hold).
Some other better-ranked stocks from the broader technology sector include Salesforce (CRM - Free Report) , Hewlett Packard (HPE - Free Report) and Cadence Design Systems (CDNS - Free Report) . While Salesforce and Hewlett Packard sport a Zacks Rank #1 (Strong Buy), Cadence carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Salesforce’s fiscal 2022 earnings is pegged at $4.68 per share. The long-term earnings growth rate of the company is pegged at 16.8%.
Salesforce’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 44.2%. Shares of CRM have declined 2.7% in the past year.
The Zacks Consensus Estimate for Hewlett Packard’s fiscal 2022 earnings is pegged at $2.03 per share, unchanged in the past 60 days. The long-term earnings growth rate of the company is pegged at 5.8%.
Hewlett Packard’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 14.4%. Shares of HPE have rallied 34.5% in the past year.
The Zacks Consensus Estimate for Cadence 2021 earnings is pegged at $3.25 per share. The long-term earnings growth rate of the company is pegged at 18.2%.
Cadence’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11%. Shares of CDNS have returned 8.2% in the past year.