Bodycote PLC (LON:BOY) saw its shares gain today as the mid-cap engineer reported a jump in third-quarter revenue and reaffirmed its outlook for the year.
In a trading update for the three months to the end of September, the FTSE 250-listed provider of heat treatment and specialist thermal processing services posted a 16.6% rise in group revenue of £169mln, or up 12.9% at constant currency.
READ: Bodycote rallies as it sees full year profits at top end of market forecasts
The firm said the recovery in the North American onshore oil & gas market began during the second quarter and continued over the period, with overall growth of 24.5% in its energy revenues.
The company said it saw 8.3% growth in the car and light truck market, with strong growth in Western Europe and its emerging markets, while North American revenues were down.
It added that general industrial revenues were up 11% in all geographies against a weak comparable, with the strongest growth in Western Europe, but defence revenues continued to decline.
The group concluded: "Bodycote's performance in the period has been in line with the board's expectations and, accordingly, the group's outlook for the year as a whole remains unchanged."
In mid-morning trading, Bodycote’s shares were up 1.8% at 942.5p.
In a note to clients, analysts at Liberum Capital reiterated a ‘buy’ rating on Bodycote shares and placed their 910p target price under review, saying “we see upside potential to consensus estimates given the strong top line and supportive ECI data.”