20.7 C
Munich
Monday, July 13, 2020

Why the Earnings Surprise Streak Could Continue for Citrix (CTXS)

Must read

8 Actual Real Estate Marketing Hacks – (No FB, Google Ads)

The real estate business has fluctuated over the previous decade - NAR (National Association of Realtors) participation was at the highest point...

5 Not to Miss Property Investment Strategies For UK

There is a ton of worry among the property business network in the UK right now. Pandemic is all around and it...

5 Best Real Estate Crowdfunding Platforms in Europe – Pros & Cons

Searching and then finding the best Real Estate crowdfunding site in Europe for your enterprise can be a tough task. With such...

DIY Home Staging Tips you should follow to sell your home faster

Once your house is listed for sale, you might have been perturbed by the number of real estate agents who want you...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Citrix Systems (CTXS), which belongs to the Zacks Computer – Software industry.

This cloud computing company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 12.80%.

For the most recent quarter, Citrix was expected to post earnings of $1.66 per share, but it reported $1.71 per share instead, representing a surprise of 3.01%. For the previous quarter, the consensus estimate was $1.24 per share, while it actually produced $1.52 per share, a surprise of 22.58%.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Price and EPS Surprise” data-reactid=”15″>Price and EPS Surprise

Thanks in part to this history, there has been a favorable change in earnings estimates for Citrix lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Citrix currently has an Earnings ESP of +0.17%, which suggests that analysts have recently become bullish on the company’s earnings prospects. This positive Earnings ESP when combined with the stock’s Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company’s next earnings report to be released on April 23, 2020.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock’s earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it’s really important to check a company’s Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
&nbsp;
Citrix Systems, Inc. (CTXS) : Free Stock Analysis Report
&nbsp;
To read this article on Zacks.com click here.” data-reactid=”30″>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Citrix Systems, Inc. (CTXS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest article

8 Actual Real Estate Marketing Hacks – (No FB, Google Ads)

The real estate business has fluctuated over the previous decade - NAR (National Association of Realtors) participation was at the highest point...

5 Not to Miss Property Investment Strategies For UK

There is a ton of worry among the property business network in the UK right now. Pandemic is all around and it...

5 Best Real Estate Crowdfunding Platforms in Europe – Pros & Cons

Searching and then finding the best Real Estate crowdfunding site in Europe for your enterprise can be a tough task. With such...

DIY Home Staging Tips you should follow to sell your home faster

Once your house is listed for sale, you might have been perturbed by the number of real estate agents who want you...

Solar emerging as best bet for West Africa’s future energy mix

The Economic Community of West African States should prioritize the development of solar PV to meet surging energy demand over the next...