Tieto Advances Most Since 2009 on New Orders: Helsinki Mover
Tieto Oyj (TIE1V), the largest Nordic provider of computer services, climbed the most in more than two years as new orders more than tripled.
Tieto rose as much as 17 percent, the most since March 2008, and closed 13 percent higher at 13 euros in Helsinki. Tieto has climbed 18 percent this year, giving it a market value of 936 million euros ($1.2 billion).
“New orders were significantly better than in the prior quarter,” said Mikko Ervasti, an analyst at Evli Bank Oyj in Helsinki. “The tremendous operating margin, positive outlook and raised dividend are also boosting the share.”
Tieto’s orders more than tripled to 601 million euros last quarter from 177 million euros in the July-to-September period. The operating margin rose to 5.3 percent last quarter from 1.4 percent a year earlier. The Helsinki-based company said full- year sales will develop in line with the market and its earnings before interest and taxes will rise this year from last year’s level.
Tieto proposed a dividend payout of 0.75 euros a share, the highest since 2007. Bloomberg had estimated Tieto would maintain the dividend at 0.70 euros a share. The company paid 0.54 euros a share as a regular dividend and 0.66 euros a share in a special cash payout five years ago.
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