The software provider ATOSS Software expects higher profitability this year.
The forecast for the operating margin will be raised to at least 34 percent due to the solid start to the year and the expectations for the rest of the year, the specialist for human resources management software announced in Munich on Friday. Management had previously forecast earnings before interest and taxes (EBIT) of at least 32 percent of sales, but analysts had already expected more. The sales target of 215 million euros was confirmed after double-digit percentage growth in the first quarter.
The SDAX-listed share initially jumped 10 percent to its highest level since mid-March. It gave up some of its gains over the course of the day and was recently up a good 5 percent, which was still enough for first place in the small cap index. However, since the beginning of the year, the stock has remained one of the biggest losers in the SDax, with a discount of more than 31 percent based on the Xetra close the previous day.
In the first three months of the year, revenues rose by 11 percent to 51.4 million euros compared to the same period last year. Operating profit rose by almost 17 percent to 18.2 million euros. The bottom line is that the Munich-based company increased profits by 13 percent to 12.8 million euros.
Jefferies analyst Henrik Paganetty spoke of a strong first quarter with strong cash inflows.
ATOSS software is making up some ground
Raised margin targets on Friday boosted ATOSS Software’s shares, which had been very weak the day before. On XETRA they temporarily jumped by 5.44 percent to 83.40 euros.
The SDAX-listed software provider announced that the forecast for the operating margin will be raised to at least 34 percent due to the solid start to the year and the expectations for the rest of the year. Jefferies analyst Henrik Paganetty spoke of a strong first quarter with strong cash inflows.
Since the beginning of the year, however, they have continued to be among the biggest losers in the SDAX, with a discount of more than 31 percent based on the XETRA close the previous day.
Jefferies keeps ATOSS Software at ‘Buy’ by the numbers
According to figures for the first quarter, the analysis company Jefferies has left the rating for ATOSS Software at “Buy” with a price target of 140 euros. Analyst Henrik Paganetty on Friday praised the strong results and the increased target for operating profitability for the current year.
MUNICH / FRANKFURT / NEW YORK (dpa-AFX)
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