ConvaTec Group PLC (LSE:CTEC) is the top riser on the FTSE 100, up 19%, as the colostomy bag and wound-care specialist hiked guidance for the full year as revenue growth so far this year was stronger than expected.
Organic revenue growth of 7.7% was reported for the first 10 months to end-October, ahead of its prior full-year guidance for 5-7%.
The outlook for the year was therefore raised to 7.25-8.0% organic revenue growth, while adjusted operating profit margin guidance was also increased to at least 21.5%, from 21% before, although reported margin is expected to see a bit of a currency headwind.
Prior guidance for double-digit growth in earnings per share and free cash flow has been reiterated, which is better than City analysts had been predicting.
Analysts at Stifel said that after a flat first half for earnings expansion, "Convatec had a lot of ground to make up in [the second half], which believe has weighed on the shares".
"As such, confirmation of FY guidance (putting the business a nudge ahead of current consensus) and continued minimal impact from potential changes from the proposed LCDs (and confirmation of no expected impact to overall group guidance for FY25) will likely prompt a relief rally."