Spirent Communications PLC (LON:SPT) have continued to gain momentum over the last few months, which has driven strong performance.
Spirent Communications plc offers test, measurement, analytics and assurance solutions for next-generation devices and networks.
Spirent provides products, services and information solutions for high-speed Ethernet, positioning mobile network infrastructure markets, with expanding focus on service assurance, cybersecurity and 5G.
The FTSE 250 listed firm said that it expects full year profits to exceed market expectations, which has sent shares soaring.
Shares in Spirent trade at 237p (+15.89%). 13/1/20 11:32BST.
Spirent said that they were able to secure a number of important and significant contract wins in the final quarter of 2019, which drove revenue.
The firm said that 2019 total group revenue rose 5.5% compared to a year ago, with the figure totaling $503 million.
Spirent added that it has forecasted for adjusted operating profit to be between $91 million and $93 million – which would represent a rise of between 18% and 21% on the $77.1 million reported one year ago.
There was notable growth in its Network and Security Unit, as demand rose for 400G high speed ethernet test solutions.
The company alluded to strong order growth for its Lifecycle Service Assurance products in the final quarter, but this is expected to benefit 2020 and long term operations.
Its Connected Devices unit saw a “solid” operating profit outturn, despite some revenue reduction driven by increased 4G legacy decline.
Spirent report another strong year of growth
Commenting on the results, Eric Updyke, Chief Executive Officer, said:
“We are delighted to deliver another strong year of growth and earnings improvement as further evidence that our strategy is indeed working, and we expect to exceed the market’s profit expectations for the financial year 2019. We enter the new financial year with a strong orderbook and we are well positioned with leading technology to leverage more opportunities across our portfolio. Over the medium term we expect to continue to deliver mid-single digit revenue growth with a focus on increasing recurring revenue streams to enhance the Group’s visibility and effective investment in our technical platforms to drive ongoing performance.”
Impressive few months for Spirent
In November, the firm gave shareholders another update which outlined the strength in position of the firm.
The FTSE250 listed firm did not change their annual expectations after a solid third quarter performance.
The telecoms firm also reported positive 5G and high speed internet testing, where all firms in the market look to upgrade their services.
Eric Upydyke took over as Chief Executive in May and is currently restructuring operations and management at the firm.The changes outlined included a focus on recurring revenue, senior board changes and the development of sales and marketing campaigns.
“We are on track to show full year progress on 2018 with, as in previous years, revenue and earnings performance weighted to the second half of the year and in particular to the final quarter. Our expectations for the full year remain unchanged.”
The changes in plan and structure seem to have been of great benefit to Spirent from the update today, and shareholders will be thoroughly impressed.
