Shares in Micro Focus (LON:MCRO) have jumped in London this morning as the tech group updated investors on its half-year revenue forecast. The move came after the company received a boost from a $40-million licence deal.
As of 09:45 BST, Micro Focus’ share price had added 8.04 percent to 1,371.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.22 percent higher at 7,740.16 points. The group’s shares have lost more than 44 percent of their value over the past year, as compared with a near three-percent rise in the Footsie.
Micro Focus lifts forecast
Micro Focus announced in a statement this morning that it expects to report revenues better than the management guidance of minus nine percent to minus 12 percent on a constant currency basis for the six months ended April 30. The company explained that the performance included “an unusually large licence deal” of about $40 million, while noting that stripping out the impact of the deal, its underlying revenue was still “towards the better end of the guidance range”.
Today’s update marks a boost for the group which warned on its full-year revenues earlier this year, also announcing the departure of its chief executive.
“The Micro Focus team is making encouraging progress on improving both the discipline and speed of execution within the business,” Micro Focus’ new CEO Stephen Murdoch commented in the statement.
Analysts on blue-chip group
As of May 11, the consensus forecast amongst 13 polled investment analysts covering Micro Focus for the Financial Times advises investors to hold their position in the company. According to MarketBeat, the company currently has a consensus ‘hold’ rating and an average price target of 1,352.22p.