Endava issued below expected financial year 2024 guidance as the technology company continues to be impacted by its outsized to Europe, FinTech and private equity and High Tech companies, analysts at Wedbush believe.
Endava, along with reporting its fourth quarter and full-year fiscal 2024 results before the opening bell on Tuesday, said it expects first quarter fiscal 2024 revenue in the range of £186 million (US$230.7 million) to £187 million (US$231.9 million), representing a constant currency decline between 2% to 1%.
It also forecast earnings per share in the range of £0.34 (US$0.42) to £0.35 (US$0.43) per share.
The Street was expecting a revenue projection of £198.2 million and earnings per share estimate of £0.49 ($US$0.61).
However, the Wedbush analysts highlighted that the company had pointed to a rebound in sales activity that was encouraging, in their view, regarding its conservative outlook.
They awarded the stock an ‘Outperform’ rating and a US$65 price target.
Endava shares traded up 9.5% at US$55.83 in the early afternoon on Tuesday.
“DAVA can generate revenue and adjusted earnings per share growth rates of 10% to 15% and 15 to 20% plus respectively,” the analysts wrote.
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