Computershare gains after upgrading FY25 earnings guidance
Make us a preferred source
Make us a preferred source on Google
The news: Shares in Computershare jumped in early trading after the share registry firm upgraded its earnings guidance after the market closed on Tuesday.
The numbers: Shares were up 7.7% to $38.74 by 10:25am AEDT, extending gains of around 55% over the last 12 months.
Computershare lifted its full-year earnings-per-share (EPS) guidance to 135 cents, an increase of around 15% compared FY24. The company previously guided an increase of around 7.5%.
First-half EPS climbed 18.7% year on year to 65 cents, topping consensus estimates by 6%. Net profit after tax grew 15.9% to $384 million, 5.5% ahead of average forecasts. Revenue rose 6.4% to $1.5 billion.
The context: Computershare attributed first-half revenue growth to an increase in recurring fee revenue and transaction revenue across all core business lines.
Margin income was also "resilient", the company said, down less than 1% during the period, despite interest rates "falling further than we expected".
UBS remained 'neutral' rated on Computershare, but raised its price target from $36.15 to $37.40.
What they said: "Alongside a lower sustainable tax rate outlook which contributed half the beat, [Computershare] benefited from stronger transactional revenues and higher margin income balances — consistent with a more buoyant equity and capital market backdrop post the US election," UBS analysts said.
The sources: ASX announcement, UBS research
