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Micro Focus share price dips despite ‘steady progress’ in H1

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Micro Focus’ (LON:MCRO) share price has retreated in London this morning even as the software specialist reported what it referred to as ‘steady performance’ in the first six months of its financial year. The company further posted a rise in profit during the reported period while leaving its interim dividend unchanged.

As of 09:54 BST, Micro Focus’ share price had given up 1.95 percent to 2,056.50p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.30 percent lower at 7,526.83 points, and offsetting gains in Ocado (LON:OCDO). The group’s shares have added more than 60 percent to their value over the past year, as compared with about a two-percent dip in the Footsie.

Micro Focus posts interims

Micro Focus announced in a statement this morning that its revenue had fallen 5.3 percent to $1.66 billion in the six months ended April 30. The company meanwhile reported adjusted diluted earnings per share growth from continuing operations of 8.4 percent. The company’s profit for the period rose to $1.4 billion, from $619.7 million a year ago. Micro Focus maintained its interim payout to shareholders at  58.33 cents per share.

“We have made steady progress this half year, delivering against our financial and operational commitments,” Stephen Murdoch, the FTSE 100 group’s chief executive officer, commented in the statement, adding that the company had continued “to make progress on our significant program of work to fully integrate the HPE Software business” and that it was reiterating its full-year guidance.

Analysts on FTSE 100 group

As of July 5, the consensus forecast amongst 12 polled investment analysts covering the FTSE 100 group for the Financial Times advises investors to hold their position in the company. According to MarketBeat, the software specialist currently has a consensus ‘hold’ rating, while the average target for the Micro Focus share price stands at 1,827.71p.

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