CTXS - Embedded Expectations Analysis - 2018 08 16
Citrix Systems, Inc. (CTXS:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) Earnings, with a 23.4x Uniform P/E. At these levels, markets are pricing in expectations for the firm's profitability to only improve slightly. However, given management's confidence about continued global expansion and transition to subscription-based services, valuation is likely too conservative and outperformance is warranted in the long-termSpecifically, management is confident in their ability to sustain strong subscription mix growth within their Workspace services, which is driving unbilled subscription revenue significantly higher. Additionally, they are confident in their ability to expand the capabilities of Workspace, such as cloud app control services. Moreover, they are confident in their ability to continue generating demand from their brand awareness and enablement strategies, as well as their ability to achieve their newly raised guidance for Q3 and 2018. Finally, they are confident in their ability to sustain strong global growth
Citrix Systems is an enterprise software company. The company markets and licenses its solutions through multiple channels worldwide, including selling through resellers, direct and over the Web. The company's partner community comprises thousands of value-added resellers known as Citrix Solution Advisors, value-added distributors, systems integrators, independent software vendors, original equipment manufacturers and Citrix Service Providers. The company provides solutions and services that it categorizes into three inter-related and complementary areas: Workspace, Networking and Professional Services.
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