The Integrated Research Limited (ASX: IRI) share price has shot up 33% in response to its half-year profit guidance.
Integrated Research is a technology business that was set up in 1988. It monitors, troubleshoots and optimises critical technology systems. It also provides performance management and analytics for enterprise communications, collaboration, and payment systems. Some of the world’s largest banks, airlines and telecommunications businesses use Integrated Research.
Why Integrated Research Shares Rose 33%
The technology company said that whilst it is in the early stages of preparing the December 2018 half-year financial statements, it could reveal a strong result.
Revenue is expected to be between $49 million and $50.5 million, representing growth of 7% to 11% compared to the equivalent period last year. Profit after tax is expected to be between $11.1 million and $11.7 million – this will represent growth of 19% to 26%.
Looking at individual segments, licence sales are expected to grow by 17% to 23% to between $30 million and $31.5 million. The company also said the European operation saw a return to growth for the first half with a significant contribution from the Payments product line.
Andrew Page, the founder of Strawman.com, recently detailed the investment case for Integrated Research shares in this excellent piece of analysis.
Today’s announcement seems to have positively surprised the market as much as the Costa Group Holdings Ltd (ASX: CGC) update disappointed investors.
Prior to today’s announcement, Integrated Research shares were down 58% in a year, so it has recovered some of that lost value. The statutory profit figures won’t be released for another month, Integrated Research thinks it will announce the result on 14 February 2019.
Unfortunately for investors who don’t own Integrated Research shares, it’s unlikely there will be much of a surprise in the upcoming audited report, so I’m not in a rush to buy shares.
The 2 rapid-growth shares in the free report below look more appealing to me.
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