Citrix reported better-than-expected third quarter earnings after the bell on Wednesday. However, the company's EPS guidance for the fiscal year sent its share prices down more than five percent in late trading.
The company reported a net income of $127 million, or 82 cents a share, on revenue of $691 million, up three percent from a year ago. Non-GAAP earnings were $1.22 a share.
Wall Street was looking for earnings of $1.04 a share on revenue of $691.5 million.
"I am pleased with our execution this quarter and our renewed discipline in managing our business. We are moving quickly to drive business transformation across Citrix, aligning with our customers' desire to support multi-cloud and hybrid-cloud environments," said Citrix CEO David Henshall. "I am excited about the opportunity we have moving forward and our potential over the next several years."
Revenue for Software-as-a-Service and from license maintenance both increase by 32 and six percent respectively. But product and license revenue dropped by seven percent.
For the outlook, Citrix expects fiscal 2017 revenue between $2.82 billion to $2.83 billion with EPS between $2.80 to $2.93. Analysts were looking for revenue of $2.82 billion with earnings of at least $4.63 per share.
Meanwhile, F5 Networks reported its Q4 financials and the results were mixed. The company reported non-GAAP net income of $135 million, or $2.14 per diluted share, on revenue of $538 million.
Wall Street was looking for earnings of $2.21 per share on revenue of $535 million.
"We continued to see strong customer interest in our virtual edition and application security offerings during the fourth quarter, particularly in public cloud deployments," said F5 CEO François Locoh-Donou. "We expect the growing traction of our software based advanced application services will be a key driver of product revenue in fiscal 2018 and beyond."
For the first quarter of fiscal 2018, F5 has set a revenue goal of $515 million to $525 million with a non-GAAP earnings target of $2.02 to $2.05 per diluted share.