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Citrix Systems (NASDAQ:CTXS) is expected to report Q4 earnings after the market close on Wednesday, January 25, with a conference call scheduled for 4:45 pm ET.

Guidance

The consensus estimate is 76c for EPS and $618.61M for revenue, according to First Cal. Citrix has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Guidance from management for Q4 is: adjusted EPS 75-76c, on revenue of $610M-$620M. For FY: adjusted EPS $2.45-$2.46 on revenue of $2.2B-$2.21B. Wells Fargo expects strong results from Citrix. They are modeling revenues of $619M and EPS of 76c, in-line with consensus estimates. The firms' estimates represent a 16.9% year-over-year growth in revenues and 12.9% growth in desktop revenues.

Analyst Views

Wells Fargo sees Citrix as a key beneficiary of the ongoing data center transformation and all three segments -- virtualization, datacenter, and SaaS -- are growing at double digit rates for Citrix, consistent with industry growth rates. The firm believes Citrix’s XenDesktop continues to win in competitive evaluations against VMWare (NYSE:VMW) and the trade up program continues to drive benefits. Wells Fargo's checks indicate that the pipeline is solid and security and flexibility are key drivers of growth. The firm also expects new features and enhancements to continue the growth into FY12. Wells believes the NetScaler product line continues to see traction due to cross-sell into the existing customer base. And, the SaaS business continues to grow as market trends continue to favor web conferencing and team collaboration. Wells Fargo expects solid guidance. For Q1, the firm estimates total revenue of $574M and EPS of 58c, which is above consensus estimates of $561.4M and 56c. For FY12, Wells estimates revenues of $2.4B and EPS of $2.83 vs. consensus of $2.49B and EPS of $2.79. Management previously guided FY12 revenue to $2.47B-$2.48B. The firm expects solid guidance above consensus to be driven by desktop virtualization, Saas and cloud networking drivers.