AOL Money & Finance

CitrixSystems posts

Feed

Citrix Systems (CTXS): Heartening numbers spur stock rise

Citrix Systems (NASDAQ: CTXS) offers infrastructure software and services that enable enterprise-wide, on-demand access to information and applications. The company's software provides networked PCs and wireless devices with remote access to applications on a central server. Its programs also allow for load balancing, application development and resource management, in both Windows and UNIX environments. Citrix has more than 180,000 customers worldwide. Microsoft (NASDAQ: MSFT) and IBM (NYSE: IBM) are featured partners.

Fourth quarter company news has been heartening. The firm reported better than expected Q3 numbers, issued solid FY07 guidance, announced new partnerships with Dell (NASDAQ: DELL), Hewlett-Packard (NYSE: HPQ) and Business Objects (NASDAQ: BOBJ), and saw eight brokerages issue CTXS targets that averaged 27% above the current share price. The news kept the stock cycling through a positive 19 week trading channel. The price is currently consolidating at the base of that channel, where oversold CCI, MACD, Momentum, RSI and Stochastic technical parameters suggest the potential for a rise back toward the top. Correspondence of the stock's 200-day moving average to the base of the channel backs the rebound notion.

Brokers recommend the issue with seven "strong buys," 13 "buys" and five "holds." Analysts see a 16% average annual growth rate through the next five years. The CTXS Price to Book ratio (4.04), Price to Free Cash Flow ratio (20.61), Sales Growth rate (25.94%) and EPS Growth rate (41.38%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 81% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index and the Nasdaq 100 Index. Over the past 52 weeks, it has traded between $26.10 and $43.90. A stop-loss of $31.45 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

Citrix Systems promotes sharing

The degree to which an enterprise can be effective is a function of how easily and securely its employees can access and share stored information. There's an outfit in Fort Lauderdale, Florida that says it can facilitate those processes. Since its client list includes the entire Fortune 100, there is no reason to doubt the claim.

Citrix Systems (NASDAQ:CTXS) offers infrastructure software and services that enable enterprise-wide, on-demand access to information and applications. The company's software provides networked PCs and wireless devices with remote access to applications on a central server. Its programs also allow for load balancing, application development and resource management, in both Windows and UNIX environments. Citrix has more than 180,000 customers worldwide.

The firm surprised the Street last week, with Q4 EPS of 39 cents and revenues of $321 million. Analysts had been expecting 38 cents and $311.4 million. Management also guided Q1 EPS to 34-35 cents (35 cent consensus), Q1 revenues to $298-$308 million ($297.95M consensus), FY07 EPS to $1.51-$1.54 ($1.52 consensus) and FY07 revenues to $1.29-$1.31 billion ($1.28B consensus). Officers said the firm is entering 2007 with the strongest pipeline it has ever had. Microsoft's (NASDAQ:MSFT) Vista and Office 2007 are expected to be big catalysts. The news boosted the shares into a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside. Note that the stock's 90-day moving average is currently supporting the flag.

Brokers recommend the issue with six "strong buys", seven "buys" and twelve "holds". The CTXS Price to Book ratio (3.83), Price to Free Cash Flow ratio (20.76), Sales Growth rate (19.33%), Operating Margin (18.91%), Net Profit Margin (17.31%), Return on Assets (10.62%) and Return on Investment (14.30%) compare favorably with sector and S&P 500 averages.

The stock is one of those used to calculate the S&P 500 Index and the Nasdaq 100 Index. Institutional investors hold about 83 percent of the outstanding shares. Over the past fifty-two weeks, CTXS has traded between $26.10 and $45.50. A stop-loss of $27.40 looks good here. Note that the Citrix Systems Board of Directors has instituted a voluntary review of the company's historical stock option granting practices.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

Symbol Lookup
IndexesChangePrice
DJIA+44.2910,291.26
NASDAQ+15.822,166.90
S&P 500+5.501,098.51

Last updated: November 11, 2009: 11:47 PM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

WalletPop Headlines

AOL Business News

BioHealth Investor Headlines

Sponsored Links

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance