Temenos Group AG jumped the most in more than two years after the Swiss maker of financial software reported second-quarter revenue and profit that beat analyst estimates as the company won new business from European banks.
Revenue rose 13 percent to $127.1 million, the Geneva-based company said in a statement Tuesday. Analysts predicted $128.2 million, the average estimate compiled by Bloomberg. Earnings per share of 36 cents beat the average estimate of 32 cents.
Software licensing climbed 56 percent in constant currency terms. The company said it won two “landmark deals” with U.S. banks in the quarter. Temenos’s products allow banks to provide customer services in branches and online, and also perform back-office functions.
“Our license revenues grew strongly on the back of improving market conditions and very strong execution,” Chief Executive Officer David Arnott said in the statement. “We had a high win rate across the board, and our European business in particular performed well.”
Temenos climbed 9.9 percent to 35 Swiss francs at 5:05 p.m. in Zurich, giving the company a market value of 2.4 billion francs ($2.5 billion). The stock gained as much as 13 percent, the biggest intraday advance since February 2013.
The revenue increase came after two quarters of declining sales. The quarter was decent, but it’s unclear whether the results mark a turning point, analysts at Barclays Plc said in a report. More clarity is needed on large deals and the company’s closure rates, they said.