viewSpirent Communications

Spirent Communications shares jump as it expects full year profit to beat market forecasts

Spirent Communications said full year revenue gained 6%, driven by growth in the networks and security division

Spirent saw strong demand for 400G high-speed ethernet testing services

Spirent Communications PLC (LON:SPT) expects full year profit to exceed market forecasts after cutting costs and growing revenue.

The IT network products specialist said its order intake for the year totalled US$470mln, up 6% on the previous year, and revenue gained 6% to US$477mln.

Growth was led by its networks and security division, boosted by demand for 400G high-speed ethernet testing services.

Revenue was also supported by a US$10mln contribution from one-off business with a US defence contractor, which the company does not expect to be repeated in 2019.

The Lifecycle Service Assurance business only saw modest revenue growth due to a major reorganisation in the key customer base.

Spirent said the Connected Devices arm delivered “strong profit growth” in the year, driven by effective cost management.

READ: Spirent chief executive to retire after 36 years at networking specialist

Following efforts to mitigate higher inflation with cost cuts, the company now expects adjusted operating profit of US$75mln to US$77mln, up 30% on the prior year and above analysts’ estimates.

The group had cash of just over US$120mln at the end of the period after dividend payments.

Shares rose 7.3% to 134.35p in morning trading. 

Quick facts: Spirent Communications

Price: 208 GBX

Market: LSE
Market Cap: £1.27 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Full interview: KRM22 expands product offerings with deltaconX partnership,...

KRM22 PLC (LON:KRM) CEO Keith Todd stopped by the Proactive New York studio to talk about how the risk management group has signed a new partnership deal, and raised fresh capital. Todd says the company's new partnership with deltaconX simplifies regulatory reporting through its Global Risk...

6 hours, 4 minutes ago


Director Declaration

11 hours, 19 minutes ago

Third Quarter Trading Update

5 days, 15 hours ago

Total Voting Rights

1 week, 5 days ago

Director/PDMR Shareholding

2 weeks, 5 days ago

Holding(s) in Company

3 weeks, 2 days ago

Total Voting Rights

on 1/10/19

2 min read