Hansen Technologies shares soar on improved FY25 earnings guidance
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The news: Hansen Technologies, which provides software products to energy and communications service providers, saw its share price surge after the company increased its full-year earnings guidance.
The numbers: At 12:58pm AEST Hansen’s share price had increased by 11.3% to $5.32.
Guidance for underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) was lifted from between $92 million and $101 million, to between $110 million and $112 million. This is 19-21% higher than FY24.
Cash EBITDA guidance was also increased from between $76 million and $85 million to between $110 million and $112 million. This is 20-22% higher than FY24.
Meanwhile, operating revenue guidance was lowered from between $398 million and $405 million, to between $391 million and $393 million.
The context: The boost to EBITDA guidance was driven by "improved operating efficiencies, disciplined cost management, and a positive earnings contribution from powercloud [billing platform], which returned to profitability ahead of expectations at the time of acquisition", the company said.
RBC Capital Markets analyst Garry Sherrif flagged that "core sales growth for FY25 remains higher than historical levels and the slip of contracts into FY26 is less of an issue, with the materially improved profitability on both an underlying and cash basis outweighing the minor sales miss".
The source: RBC Capital Markets research
