Guidance range narrows and slightly improves ahead of FY Results
Companies: Telit Communications S.p.A.
As the December year-end approaches, Telit Communications has put out a reassuring refinement to its full year guidance with a narrowing range and slightly increased midpoint for both adjusted EBITDA and EPS.
Guidance for revenues has moved to the lower end of the previous range but Management flag a "better gross margin and operational cost discipline" are the main drivers for the firming earnings forecasts.
Diving into the regional performance, the Americas have been a key catalyst as:
"revenue growth in this region will be in excess of 20% in H2. For the year as a whole, the Group expects the revenue growth rate to be in the order of 15%."
APAC also continues to "show double-digit growth" in revenues, while growth in EMEA has been more modest.
Possibly one of the best named CEO's in the UK market, Oozi Cats, struck a positive tone:
"Our guidance for adjusted EBITDA and EPS reflects our anticipated double digit growth for the full year. Americas return to double digit growth, together with the growth in APAC and EMEA and the continued strong momentum in our IoT Services business, leaves us well placed to finish the current year strongly."
Shares are up 2% this morning as the market welcomes the narrower and slightly improved guidance range and the continued expectations of double-digit growth.