The market may be tumbling lower today, but that hasn't stopped the Johns Lyng Group Ltd (ASX: JLG) share price from shooting higher.
In afternoon trade the building services company's shares are up 6% to $2.55.
This makes it one of the best performers on the All Ordinaries today alongside National Storage REIT (ASX: NSR) and Pivotal Systems Corp Inc (ASX: PVS).
Why is the Johns Lyng share price jumping higher?
Investors have been buying the company's shares on Thursday after it upgraded its guidance for FY 2020.
This afternoon Johns Lyng advised that it has been experiencing strong business-as-usual and catastrophe (CAT) activity in its core Insurance Building and Restoration Services businesses (IB&RS).
According to the release, in the first half Johns Lyng expects revenue of $234 million, which represents a 53% increase on the prior corresponding.
The company's EBITDA is expected to grow even quicker. Management has guided to first half EBITDA of $18 million, up 75% on the prior corresponding period.
In light of this strong first half, it has upgraded its full year revenue guidance by 5% and its EBITDA guidance by 11%. Management now expects $420 million on the top line and $32 million of EBITDA in FY 2020.
Johns Lyng's CEO, Scott Didier, believes this upgrade reflects the outstanding performance from the Group's IB&RS business.
He said: "We've taken great momentum into FY20 and had an excellent first half of the year. It's particularly encouraging that our core businesses are again our leading performers, central to this earnings upgrade."
Mr Didier also noted that it has experienced a significant flow of new job registrations following both the recent bushfire crisis and significant hailstorm events.
For now, though, it is too early to quantify the financial impact of this on its full year results. But it plans to provide a further update on this during its first half results roadshow in February.
