NEW YORK (TheStreet) -- Shares of Citrix Systems (CTXS) - Get Report were gaining 10.02% to $76.61 Wednesday after the software company beat analysts' estimates for earnings in the second quarter and announced a deal with activist investor firm Elliott Management.

Citrix reported earnings of $1 a share for the second quarter, above analysts' estimates of 82 cents a share. Revenue grew 1.9% year over year to $796.76 million, about analysts' estimates of $790.37 million.

The company announced that CEO Mark Templeton plans to retire from the company. Templeton will remain with Citrix until a successor is appointed.

Citrix also announced a cooperation deal with activist investor firm Elliott Management, which owns about 7.5% of the company's stock. As part of the agreement Elliott's Jesse Cohn will join Citrix's board of directors to replace Asiff Hirji who is stepping down effective immediately.

The company said the board of directors has "formed an operations committee, which will work closely with the company's management team on a comprehensive operational review focusing on improving Citrix's margins, profitability and capital structure," as part of the Elliott agreement.

TheStreet Ratings team rates CITRIX SYSTEMS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate CITRIX SYSTEMS INC (CTXS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."

You can view the full analysis from the report here: CTXS Ratings Report

CTXS data by YCharts

Image placeholder title