Citrix stock price gains as it reports a Q4 beat and announces $2.25bln takeover of Wrike

Shares of Citrix (NASDAQ: CTXS) soared yesterday after the networking software company said it acquired the project management startup Wrike for $2.25 billion and reported better-than-expected Q4 earnings. 

Fundamental analysis: Portfolio expanded

Wrike is acquired from the private equity firm Vista Equity Partners for $2.25 billion in cash, Citrix said. The startup is focused on offering project management solutions and it has witnessed a huge surge in demand for its services amid the pandemic.  

According to the official statement, the project management startup reported $140 million in annual recurring revenue (ARR) last year. For this year, Wrike expects its revenue to grow about 30% to a region of $180 million to $190 million.

On another note, Citrix reported earnings per share (EPS) of $1.46 to beat the market estimate of $1.33. Revenue came in at $809.65 million, again higher than the expected $781.34 million. As for its first fiscal quarter, Citrix said it expects EPS of between $1.40 and $1.45.

Technical analysis: Shares gain

Citrix stock price soared over 2.5% yesterday to print the highest levels recorded since October last year. Shares are now on the way to record the third consecutive month in the green, after soaring 9.4% and 5.0% in November and December, respectively. 

Technically, the price action is now in the breakout territory as it trades above the key short-term resistance at $134.80. The next target on the upside is the descending trend line at $143.00, but buyers must make sure that the 200-DMA at $137.50 is cleared first. 

Summary

Citrix reported higher-than-expected results for its fourth quarter. In addition, the digital workspace company acquired the project management startup Wrike for $2.25 billion in cash.