Temenos Group AG, a Swiss banking software maker, advanced the most in more than 10 months after announcing “ambitious” mid-term guidance and strong fourth-quarter earnings.
Temenos climbed as much as 11 percent to 20.50 Swiss francs, the most since April 25, and was trading at 20.35 francs at 10:37 a.m. in Zurich. More than 500,000 shares changed hands, almost double the three-month average daily volume. The stock has gained 27 percent this year, giving the company a market value of 1.47 billion francs ($1.6 billion).
Fourth-quarter earnings before interest and taxes rose 36 percent to $47.9 million, the Geneva-based company said in a statement after markets closed yesterday. Sales grew 6 percent to $134.2 million. Temenos forecasts non-IFRS revenue to grow as much as 5.5 percent in 2013 and at least 5 percent on average per year in the medium term. It also predicts average annual license growth of more than 10 percent.
It’s “difficult not to like the results,” Gerardus Vos and John King at Barclays wrote in a note to customers today. Temenos delivered a “strong fourth quarter and the right message,” they said.
“The license growth in the mid-term guidance looks ambitious, but can be achieved if partner model gains further traction,” said Panagiotis Spiliopoulos, an analyst at Vontobel in Zurich with a buy rating on the stock. “Delivering on promises, management has made another step towards fully rebuilding confidence.”