Why Citrix Systems Jumped

Updated

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of virtualization specialist Citrix Systems (NAS: CTXS) have jumped by as much as 12% after the company reported first-quarter earnings.

So what: Revenue added up to $589 million with adjusted earnings per share of $0.59. Those results came in on top of the market's expectations as well as the company's own guidance provided last quarter. The Pacific region in particular showed strong growth of 40%.


Now what: Full-year guidance was also encouraging, for Citrix sees revenue between $2.53 billion and $2.56 billion, with non-GAAP earnings per share of $2.75-$2.79. In comparison, the Street was only calling for $2.51 billion in sales and a profit of $2.74 per share. CEO Mark Templeton cited three main forces driving growth: mobile, enterprise cloud, and hosted cloud services.

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