GTK Shares Soars 28% Thanks to Revised Earnings Guidance (ASX:GTK)

Utilities software provider Gentrack Group Ltd [ASX:GTK] is making strong moves today.

The GTK Share Price is currently up 28%, soaring thanks to an earnings guidance update today. A move that will have investors very pleased ahead of the release of their year-end results on 25 November.

So, let’s take a closer look at the numbers provided by Gentrack today…

Better than expected sales and earnings

The crux of today’s announcement from Gentrack is that the second half of the financial year has been very kind to them. Delivering a better-than-expected result for both sales and earnings.

As management notes, full-year revenue is now expected to be recorded at $105 million. A decent increase over the $100.5 million forecast last issued by the company.

More impressively, though, EBITDA is also likely to be higher, with a $12 million forecast. Compared to the previous $10 million earnings forecast, that is a very noteworthy improvement. Aided not only by the improved revenue, but also key cost-cutting from Gentrack’s operations.

Plus, with FY22 already on their mind, Gentrack has an upbeat outlook for the year to come too:

After recently updating group forecasts for FY22 we anticipate an increase in group revenues vs FY21 after allowing for headwinds previously announced and a reasonable additional reserve in the case of further SoLRs [supplier of last resort].’

A key win for investors that are bidding the stock higher today.

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What’s next for Gentrack Share Price?

Again, though, we’ll have to wait until 25 November for the full annual report. Documents that will give us a much broader overview of how this company has been tracking, and where it may be headed.

So, shareholders and prospective traders will want to keep an eye out for the release of that.

In the meantime, this stock is plodding along relatively well. All they really need to do is maintain their current momentum and continue doing what they’re doing.

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Ryan Clarkson-Ledward,
For Money Morning

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Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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