SYDNEY – Megaport, the Australian tech company, is set to experience its largest one-day gain since April as it raises its annual earnings guidance and projects continued growth in the next fiscal year.
On Tuesday, the stock soared 22% to AUD 8.18 (USD 5.46), marking its highest close since October 2022. This matches the significant increase seen in April 2023 during the release of the third-quarter trading update.
Megaport anticipates reporting normalized earnings before interest, tax, depreciation, and amortization (EBITDA) in the range of AUD 19 million to AUD 21 million for the 12 months ending June 30. This is an upgrade from the previously guided range of AUD 16 million to AUD 18 million.
Moreover, the company expects to revise its fiscal 2024 EBITDA guidance from AUD 41 million to AUD 46 million, with an update provided no later than the fiscal 2023 results announcement on August 22.
Accordingly, Megaport stated, “The company is still finalizing its FY 2024 budget with the new CEO to appropriately capture network expansion, product, and revenue generating headcount.” In May, Michael Reid was appointed as the Chief Executive Officer after Vincent English’s sudden resignation.
Additionally, Megaport forecasts a positive net cash position for fiscal 2024. Furthermore, it terminated a AUD 25 million debt facility with HSBC as it was unnecessary, leading to reduced costs.
In conclusion, Megaport’s revised earnings guidance and optimistic growth projections demonstrate its commitment to expansion and financial success in the coming years.