Why the EVZ (ASX:EVZ) share price shot up 70% this morning

EVZ share price has surged by 70% after the company provided guidance for its FY21 results. The EVZ share price had been down 40% before today.
The post Why the EVZ (ASX:EVZ) share price shot up 70% this morning appeared first on Motley Fool Australia. –

asx growth shares

Engineering services group EVZ Limited (ASX: EVZ)‘s shares are on the move after the company issued an earnings guidance for the first half of FY21 this morning. Immediately after the announcement, the EVZ share price surged by 7.5 cents to 18.5 cents, representing a gain of almost 70%.

What made the EVZ share price shoot the moon?

In the announcement, EVZ forecast earnings before interest, depreciation and amortisation (EBITDA) of between $3 million to $3.5 million for the six months ending 31 December 2020. The company predicts revenue to finish between $30 million and $32 million.

EVZ says that the forecast is a significant improvement on the disappointing results posted for the corresponding period in FY20, when it posted a net loss of $2.8 million on sales of $66.2 million.

Chief executive Scott Farthing said, “This result marks a significant return to profit for the EVZ Limited group of companies as our businesses continue to deliver value for our clients and shareholders in the construction, energy and fuel sectors.”

What does EVZ do?

EVZ Limited (EVZ) is an industrial engineering company that provides solutions to industrial companies. The company has three operating divisions: engineering (Brockman Engineering), power (TSF Power), and water (Syfon Systems). It operates in Australia and Asia. 

How has the EVZ share price performed in 2020?

Before today’s announcement, EZV’s share price had lost 40%. It is currently trading at 18.5 cents, an almost 70% increase against yesterday’s close. The company commands a market cap of $10 million.

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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the EVZ (ASX:EVZ) share price shot up 70% this morning appeared first on Motley Fool Australia.

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