How did the Iress (ASX:IRE) share price respond last earnings season?

We look at how the financial tech company’s shares have reacted to recent earnings releases.
The post How did the Iress (ASX:IRE) share price respond last earnings season? appeared first on The Motley Fool Australia. –

The Iress Ltd (ASX: IRE) share price has charged 42.4% higher in 2021. That means the financial services software company has managed to outpace many of its S&P/ASX 200 Index (ASX: XJO) peers.

Iress is set to announce its half-year results for the period ended 30 June 2021 (1H 2021) tomorrow. Let’s take a look at how the company’s share price reacted in the last earnings season.

How did the Iress share price respond last earnings season

It’s worth taking a look at Iress’ full-year results back in February. The financial data and software group reported its FY20 earnings on 18 February 2021.

The Iress share price jumped 4.6% higher on the day of the earnings result. That surge came after Iress outperformed its reinstated guidance numbers including a 6.6% increase in operational revenue to $542.6 million.

Iress reported full-year net profit after tax (NPAT) down 9% to $59.1 million back in February. It also provided guidance of $63 million in FY21. Investors will be watching closely tomorrow to see how the half-year NPAT is tracking against that goal.

Interestingly, the Iress share price climbed on the day it released its results. However, it didn’t reach that same $10.25 per share closing price again until May 21. Investors will be hoping there is a stronger upwards trajectory following tomorrow’s half-year results release.

Certainly, that was not the case 12 months ago following the financial data group’s half-year 2020 result. The Iress share price slumped 6% lower following its 20 August 2020 update and hit as low as $9.44 per share in early October.

Iress reported a 12% surge in half-year revenue to $270.7 million but investors narrowed in on the weaker earnings numbers. The company’s NPAT fell 14% to $26.3 million for the half and was unable to provide financial guidance for the full year given the uncertain trading environment at the time.

With tomorrow’s half-year result on investors’ minds, and a recent history of big share price moves, Iress will be one to watch early on Thursday morning.

The post How did the Iress (ASX:IRE) share price respond last earnings season? appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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