Megaport shares fall despite guidance upgrade
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More news: Megaport shares lowered in morning trading on the ASX, after the Network as a Service (NaaS) provider upgraded its full-year earnings guidance.
Megaport shares were down 6.6% to $13.35 by 11:40am AEST.
What they said: However, following the guidance upgrade, E&P Capital analysts said "we would generally expect the stock to see support from the market today".
They noted that while the company's KPIs are "somewhat muted", the small upgrade will "likely be well received".
Megaport upgrades full-year earnings guidance
The news: Megaport has upgraded its full-year earnings guidance, following "the continued improvement in the company's operating and financial performance".
The numbers: The Network as a Service (NaaS) provider upgraded its FY24 EBITDA guidance to $56 million to $58 million, an increase on the $51 million to $57 million range indicated previously. The upgrade reflects an increase of 177% to 187% compared to the prior year's normalised EBITDA of $20.2 million.
Megaport also reaffirmed its revenue guidance of $190 million to $195 million, an increase of 24% to 27% on its FY23 revenue total. Meanwhile, the company maintained full-year capital expenditure guidance of $20 million to $22 million.
Megaport's share price last closed at $14.29 and over the last 12 months has surged 157.48%.
The context: Queensland-based Megaport, which partners with global cloud service providers such as Amazon Web Services, Microsoft Azure and Google Cloud, said that its updated guidance takes into account planned investment in go-to-market capabilities, product development, marketing, advertising, travel, entertainment, professional fees and planned capital expenditure.
The company noted that the guidance excluded any future strategic initiatives.
In February, Megaport reported a swing to a first-half profit, as the group expanded its product offering and implemented a program of cost-cutting measures.
The source: ASX announcement
