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Citrix Systems To Report A Q2 Beat, Says William Blair

Citrix Systems To Report A Q2 Beat, Says William Blair - Citrix Systems, Inc. NASDAQ:CTXS

William Blair’s Bhavan Suri expects Citrix Systems, Inc. CTXS 0.22% to deliver revenue and EPS ahead of the consensus and estimates, when the company reports its quarterly results on July 26.

Suri maintains a Market Perform rating on the company.

Robust Demand

“Our conversations with partners and resellers indicated a reasonably solid demand environment for the company’s traditional XenApp and XenDesktop products, Workspace Suite, and continued strength for SaaS applications,” the analyst mentioned.

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As a result, Suri expects Citrix Systems to witness a robust rise in large deal activity, as compared to the year-ago period.

Robust Results

Suri also stated that the 2Q checks indicate a modest improvement in license growth for the company’s Workspace Suite product, which the analyst believes will continue to contribute a larger share of the license revenue mix.

“Although we did not detect outsized activity for NetScaler, we still expect growth to be low double digits. We note that the uncertain macro backdrop in the United Kingdom and the decline in the value of the British pound could present adverse headwinds as Citrix generates roughly 29 percent of its sales in EMEA,” the analyst said.

On the other hand, Suri believes Citrix Systems’ fundamentals continue to be strong in the European region, with less than 10 percent of its total revenue being generated in the U.K. In addition, the company bills a majority of its customers in U.S. dollars, limiting currency exposure.

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Apr 2016Cowen & CompanyMaintainsOutperform
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