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Highlights
- Iress shares jump 8%, with expectations of hitting the top end of FY24 guidance.
- Company’s transformation program shows results, positioning Iress for future growth and dividends.
- S&P/ASX 200 Index falls 0.7%, contrasting with Iress’ positive market performance.
Despite a broader market decline on Friday, one ASX 200 tech stock is bucking the trend: Iress Ltd (ASX:IRE). At the time of writing, Iress shares have risen 8%, reaching A$9.37. This sharp increase comes as the S&P/ASX 200 Index (ASX:XJO) falls 0.7%, highlighting the strength of Iress’ performance amid overall market weakness.
Iress is a leading technology provider to the financial services industry. The company offers a broad range of software solutions, including services for trading and market data, financial advice, investment management, superannuation, life and pensions, and data intelligence. Operating across the Asia-Pacific, North America, Africa, the UK, and Europe, Iress serves over 12,000 institutional, retail, and online traders globally, helping them monitor and manage risk, access multi-asset trading, and improve performance.
Why Is Iress Share Price Rising?
The sharp rise in Iress’ share price is primarily driven by the company’s updated earnings guidance for the financial year 2024. The company had previously guided an adjusted EBITDA range of A$126 million to A$132 million, which represented a slight potential decline or increase from the A$128.3 million achieved in FY 2023.
However, in today’s announcement, Iress management has revealed that the company now expects to meet the top end of its earnings guidance range. This update is seen as a positive signal, suggesting the company’s financial performance is on track to improve after a period of lower earnings. The company’s reaffirmed outlook has excited investors, driving the stock up significantly.
Stronger Performance and Dividend Outlook
Perhaps even more encouraging is the indication that dividend payments may soon be reinstated. Iress’ CEO and Managing Director, Marcus Price, explained that the company's transformation program had been instrumental in driving the improved performance. The benefits of the program are now being realized, positioning the company for a return to growth.
Price emphasized that with the foundations for growth firmly in place, Iress is on track to enter 2025 as a financially stronger, more streamlined business. This sets the stage for future dividend payments, an important signal to investors who have been awaiting the return of regular payouts.
The company’s ability to balance growth with shareholder returns is key to its long-term appeal. As it continues to strengthen its position in the financial technology sector, Iress appears to be emerging from a period of transformation with strong momentum.
