Earnings Preview: 3 Software Companies Report Results Wednesday

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 |  Includes: CTXS, PTC, SYMC
by: Robert Weinstein

Symantec Corporation (NASDAQ:SYMC) is expected to report last fiscal quarter's results after the closing bell on January 25, 2012. Let's review how Symantec has performed in recent quarters.

Symantec Corporation provides security, storage, and systems management solutions internationally. The company was founded in 1982 and is headquartered in Mountain View, California. SYMC trades an average of 5.8 million shares per day.

52 Week High: $20.50
52 Week Low: $14.94
Book Value: $6.18
Float Short: 1.67%

Analysts are expecting an improvement of $0.02 in earnings per share compared to last quarter's results of $0.39. Investors will be looking to see a number north of $0.41 per share, based on the earnings estimates.

The current trailing twelve months P/E ratio is 12.9. The forward P/E ratio is 11.4. Beyond looking rather weak, Symantec hasn't done much for investors. Granted since the start of the year it has performed, but that would be looking at it from a rather narrow viewpoint. Other than the 90 day moving average, the rest of the averages are moving lower and the last trade is currently under the 200 day moving average of $17.60. In the last half of December the support was breached once again and this dog simply doesn't look like it can hunt. If I already owned Symantec I would be looking to sell call options and or take some gains off the table (if able). No dividend and the most positive thing appears to be the lack of interest from short sellers.

Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $6.19 billion for 2011 vs. $5.99 billion for 2010. The bottom line has falling earnings year-over-year of $597.00 million for 2011 vs. $714.00 million for 2010.The company's earnings before interest and taxes are falling with an EBIT year-over-year of $880.00 million for 2011 vs. $933.00 million for 2010.

Here is a look at the fiscal year revenue:

paid2trade.com revenue gross bar chart for SYMC Click to enlarge

Gross reported revenue compared to the mean estimate (rounded):

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 1.66 B $ 1.68 B $ 17.43 M 1.05%
Jun-11 $ 1.58 B $ 1.65 B $ 70.97 M 4.49%
Mar-11 $ 1.60 B $ 1.67 B $ 73.72 M 4.61%
Dec-10 $ 1.58 B $ 1.60 B $ 21.51 M 1.36%
Sep-10 $ 1.46 B $ 1.48 B $ 24.25 M 1.67%
Click to enlarge

M = millions, B = billions.
Differences are rounded.
Some one-time items are often excluded in reported EPS.


paid2trade.com Quarterly Estimates And Actual EPS results SYMC Click to enlarge
Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for SYMC:

paid2trade.com short interest tool. The total short interest number of shares for SYMC Click to enlarge

The number of days to cover short interest based on average daily trading volume for SYMC:

paid2trade.com number of days to cover short interest based on average daily trading volume for SYMC Click to enlarge
Citrix Systems, Inc. (NASDAQ:CTXS)
is scheduled to release last fiscal quarter's results after the closing bell on January 25, 2012.

Citrix Systems, Inc. designs, develops, and markets technology solutions that deliver information technology services on-demand worldwide. The company was founded in 1989 and is headquartered in Fort Lauderdale, Florida. CTXS trades an average of 2.2 million shares per day.

52 Week High: $88.49
52 Week Low: $50.21
Book Value: $14.28
Float Short: 1.05%

Analysts are expecting an improvement of $0.12 in earnings per share compared to last quarter's results of $0.64. The number to beat is $0.76 per share, based on the estimated mean earnings.

The P/E ratio has been discounted, as the current trailing twelve months P/E ratio is 35.1, while the forward P/E ratio is now 29.14. A falling PE ratio may signal a bargain for astute investors, or maybe time to move on. With the PE lower but still way above my comfort zone of a maximum of 20 the growth story better continue. After a serious beat down in August, at least investors are now able to see a light at the end of the tunnel. If the all important guidance continues the upward path the shares may very well move once again past the 200 day moving average and shifting the stock from technically bearish to bullish.

Revenue year-over-year has increased to $1.87 billion for 2010 vs. $1.61 billion for 2009. The bottom line has rising earnings year-over-year of $277.07 million for 2010 vs. $191.02 million for 2009.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $320.72 million for 2010 vs. $178.68 million for 2009.Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue:

paid2trade.com revenue gross bar chart for CTXS Click to enlarge

Gross reported revenue compared to the mean estimate (rounded):

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 544.81 M $ 565.35 M $ 20.54 M 3.77%
Jun-11 $ 522.88 M $ 530.79 M $ 7.91 M 1.51%
Mar-11 $ 475.20 M $ 490.89 M $ 15.69 M 3.3%
Dec-10 $ 508.73 M $ 529.72 M $ 20.99 M 4.13%
Sep-10 $ 458.43 M $ 472.23 M $ 13.80 M 3.01%
Click to enlarge

M = millions, B = billions.
Differences are rounded.
Some one-time items are often excluded in reported EPS.


paid2trade.com Quarterly Estimates And Actual EPS results CTXS Click to enlarge
Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for CTXS:

paid2trade.com short interest tool. The total short interest number of shares for CTXS Click to enlarge

The number of days to cover short interest based on average daily trading volume for CTXS:

paid2trade.com number of days to cover short interest based on average daily trading volume for CTXS Click to enlarge
Parametric Technology (PMTC)
is expected to report last fiscal quarter's results after the closing bell on January 25, 2012. Let's review how Parametric Technology has performed in recent quarters.. The company was founded in 1985 and is headquartered in Needham, Massachusetts. PMTC trades an average of 1 million shares per day.

52 Week High: $24.64
52 Week Low: $14.25
Book Value: $7.04
Float Short: 3.70%

On average, analysts are expecting a drop of $-0.25 in earnings per share compared to last quarter's results of $0.47. Investors will be looking to see a number north of $0.22 per share, based on the earnings estimates. Analyst estimates range between $0.20 and $0.23 per share.

The P/E ratio has dropped, as the current trailing twelve months P/E ratio is 24.1, while the forward P/E ratio is now 18.04. An upside earnings report may put a lot of wind in the sails. The chart looks promising with the recent bullishness. The 60 day moving average is about to break the 200 day moving average to the upside.

Revenue year-over-year has increased to $1.17 billion for 2011 vs. $1.01 billion for 2010. The bottom line has rising earnings year-over-year of $85.42 million for 2011 vs. $24.37 million for 2010.The company's earnings before interest and taxes are rising, with an EBIT year-over-year of $117.11 million for 2011 vs. $74.78 million for 2010. Rising revenue along with rising earnings is a very good sign, and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue:

paid2trade.com revenue gross bar chart for PMTC Click to enlarge

Gross reported revenue compared to the mean estimate (rounded):

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 325.11 M $ 339.42 M $ 14.31 M 4.4%
Jun-11 $ 280.11 M $ 291.78 M $ 11.67 M 4.17%
Mar-11 $ 266.72 M $ 269.19 M $ 2.47 M 0.93%
Dec-10 $ 264.48 M $ 266.55 M $ 2.07 M 0.78%
Sep-10 $ 263.65 M $ 268.07 M $ 4.42 M 1.68%
Click to enlarge
M = millions, B = billions.
Differences are rounded.
Some one-time items are often excluded in reported EPS.


paid2trade.com Quarterly Estimates And Actual EPS results PMTC Click to enlarge
Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for PMTC:

paid2trade.com short interest tool. The total short interest number of shares for PMTC Click to enlarge

The number of days to cover short interest based on average daily trading volume for PMTC:

paid2trade.com number of days to cover short interest based on average daily trading volume for PMTC Click to enlarge

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.