Citrix Shares Off Despite Better-Than-Expected Profit

Citrix shares fell even after the digital-workspace provider beat analysts' earnings and revenue estimates for the second quarter.
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Shares of Citrix Systems  (CTXS) - Get Report dropped Thursday even after the workspace-technology company reported second-quarter results that were ahead of analyst estimates for the period. 

The Fort Lauderdale, Fla., company reported adjusted second-quarter earnings of $1.53 a share. Analysts surveyed by FactSet were expecting the company to report earnings of $1.23.

Revenue increased 7% year over year to $799 million, against the consensus analyst estimate of $769.1 million. 

The company's workspace segment rose 9% year over year, accounting for $585 million, or 73%, of quarterly revenue. Networking revenue rose 4% year over year and brought in $186 million. 

"As the world settles into a new normal, business continuity remains top of mind for customers around the globe. Our second quarter results reflect strong ongoing demand for secure, remote work environments and the high performance delivery that Citrix solutions enable," the company said in its earnings release.  

For the third quarter, Citrix expects adjusted profit of $1.20 to $1.25 a share on revenue of $755 millio. Analysts were looking for $1.21 a share on revenue of $753.5 million. 

For the year, the company expects to earn between $5.65 and $5.85 a share on revenue between $3.18 billion and $3.21 billion. That's compared with analyst expectations of earnings of $5.73 per share on revenue of $3.18 billion. 

On a day when the Nasdaq Composite was sharply lower, Citrix shares at last check were down almost 12% at $147.81. In 2020 through the close of Wednesday's trading, the stock had risen almost 51%.