Citrix Systems (CTXS, Financial) recently raised its full year earnings outlook. It now expects its earnings to be in the range of $2.90 to $2.95 per share, up from a prior guidance of $2.85 to $2.95 per share. Let us look at possible growth drivers that could enhance its growth and create value for shareholders in the long-run.
Growth initiatives
Citrix has been effectively executing its various growth initiatives like channel programs, product refreshment and partnership initiatives. Also, it is concentrating on various business priorities such as providing customer value, competitive differentiation, and profitable growth. It is rolling out various new products that could possibly enhance its performance and drive long-term growth for the company. The company has recently announced the Citrix Workspace Suite. This Citrix Workspace includes comprehensive solutions for its customer as its offers apps, desktops, data and services under one licensing structure. The company has specifically designed this solution for a mid-market, large, and global enterprises.
Citrix expects workspace suit to deliver incremental revenue for the company. It will not only enable the company to better penetrate in the market but also create a competitive edge over its peers. Moreover, Citrix should benefit this fiscal year from its release of Version 7.6 of XenApp and XenDesktop. These newer versions will certainly improve user experience with topnotch security and performance enhancement. Also, it has most compute and graphic concentrated environments. Moreover, the company has developed migration tools that should make this easier for customers to move XenApp and XenDesktop to window server 2012 that should deliver the best windows apps as the service experience.
In addition, the company is gaining incredible market traction with its XenMobile 9. The growing adoption across the world for XenMobile 9 should accelerate its performance going forward. Citrix is also planning to rollout the production for XenMobile 9 as it is seeing strong demand for it. The company sees XenMobile as a potential growth driver in future in security market. Also, it has a custodian feature and an online support service for mobile users built on Citrix that should attract more users and increase its sales in the coming years. The company expects XenMobile 9 to have a competitive advantage in the market.
Making noteworthy progress
Furthermore, the company is making significant progress with its delivery network product-line business. It continues to expand its networking segment with advance technical integration, OEM products and through end-market partnerships. Citrix is additionally building market capacity with new networking center channels that should enable the company to move its product at a faster rate in the market and clear its inventory fast. It is also seeing an incremental growth opportunity for its NetScaler in carrier networks that should enhance growth for its delivery network product line in future.
Apart from these innovation and strong products, the company is also experiencing strong growth momentum in its Share File product line. It is observing relatively strong demand for its Share File in the field of finance, medical and legal as customers in these fields are vigorously adopting its Share File. It is also capturing a great market share in the enterprise market. Further, the company has integrated Share File with its XenMobile and its work apps that should accelerate its sales in the coming quarters. Also, the company is seeing strong adoption for its Share File in the Small and Mid-sized businesses in EMEA regions that should additionally increase its sales. Moreover, its relationship with right signature has broadened its potentials with the inclusion of professional electronic document signing, saving time and money by going paperless wherever legally binding documents are regularly exchanged.
Conclusion
Citrix is certainly a good pick as it is making significant progress with its growth initiatives that are accelerating growth for both sales and profits. Moreover, its XenMobile, XenDesktop and XenApp are gaining tremendous traction in the market that should enhance its performance going forward. The analysts have estimated CAGR of 11.89% for the next five years that reflects great potential for the stock in the future.
