Shares of London-based automation software company, Endava, saw a boost on Tuesday as its fourth-quarter revenue and profit surpassed expectations. The stock rose by 9.4% to $55.80 during midday trading, although it has experienced a 28% decline this year.
In the fiscal fourth quarter, Endava reported a profit of GBP23.1 million ($28.5 million), or GBP0.40 per share, compared to GBP27 million, or GBP0.47 per share, in the previous year. This exceeded the FactSet consensus estimate of GBP0.28 per share. The company's revenue also grew by 5.2% to reach GBP189.8 million, surpassing analysts' estimate of GBP188.5 million.
Despite the uncertain economic climate causing some clients to delay projects, Endava has seen continuous demand for its services from both new and existing clients. Looking ahead, the company expects first-quarter revenue in the range of GBP186 million to GBP187 million, which falls short of the FactSet consensus estimate of GBP198.2 million.
For fiscal 2024, Endava has projected its revenue to be between GBP780 million and GBP795 million, while analysts polled by FactSet anticipate revenue of GBP831.4 million.