Software AG Advances on License Sales Growth: Frankfurt Mover
The shares gained as much as 11 percent, the biggest intraday increase since Oct. 19, and were up 9.8 percent at 25.70 euros as of 3:45 p.m., valuing the Darmstadt-based company at 2.23 billion euros ($2.7 billion).
The software-maker lifted full-year guidance for its enterprise transaction systems unit after the division increased license revenue by 20 percent to 30.1 million euros. License sales for Business Process Excellence climbed to 45.6 million euros from 31.3 million euros a year earlier. Total sales rose to 258.6 million euros from 257.1 million euros, in line with the average estimate of analysts surveyed by Bloomberg.
“After the first quarter the capital market was cautious about Software AG,” Mirko Maier, an analyst at Germany’s Landesbank LBBW, said by phone today. “Now we have to say that the results are a positive surprise.”
The software-maker lifted its full-year guidance for the ETS unit to a fall in revenue in a range of 3 percent to 6 percent, compared with a previous forecast for a drop of 7 percent to 12 percent.
The company’s shares were down 18 percent this year before today.
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