Coronavirus: Strong demand sends this ASX tech share 17% higher

The MNF Group Ltd (ASX:MNF) share price is jumping higher on Thursday after reporting strong demand due to the coronavirus outbreak…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The MNF Group Ltd (ASX: MNF) share price has been a very strong performer on Thursday.

The communications technology company's shares were up approximately 17% at one stage this morning.

At the time of writing the MNF Group share price is up 12.5% to $3.33.

Why is the MNF Group share price rocketing higher?

Investors have been scrambling to buy the company's shares this morning after it reaffirmed its guidance for FY 2020.

It continues to expect FY 2020 EBITDA in the range of $36 million to $39 million.

Given how many companies have been withdrawing their guidance this month such as Accent Group Ltd (ASX: AX1) and Flight Centre Travel Group Ltd (ASX: FLT), this development went down especially well with the market.

Increasing demand.

Management advised that the company is currently experiencing strong demand for core products across its three operating segments – Global Wholesale, Domestic Wholesale and Direct.

According to the release, the key product in demand is Australian based phone numbers, which are used for collaboration and conferencing applications.

This is likely to have been driven by the countless businesses across the country which are working from home in an effort to combat the spread of the coronavirus.

In addition to strong demand for numbers, management advised that is also currently experiencing higher than normal usage volumes across all segments.

Though, the company acknowledges that the situation is evolving rapidly. And while currently there is strong demand for its services, the external environment remains uncertain.

Like many of its customers, MNF has instigated its business continuity plans. This means that all of its employees will be capable of working from home using MNF's own collaboration products and technology to operate the business remotely.

The company intends to update the market with any further trading and operational developments as and when they occur.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of MNF Group Limited. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited. The Motley Fool Australia has recommended Accent Group and MNF Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Coronavirus News

Man with his hand on his face looking at a falling share price chart on a tablet.
Share Market News

ASX 200 stocks dive 2.4% in worst trading day since Ukraine crisis hit

It's not a good start to the week for the market.

Read more »

A woman looks nervous and uncertain holding a hand to her chin while looking at a paper cut out of a plane that she's holding in her other hand. representing the falling Air New Zealand share price today
Travel Shares

Borders just reopened so why is the Flight Centre (ASX:FLT) share price falling today?

Experts believe it may take several years for tourism levels to rebound to pre-pandemic numbers.

Read more »

A worker in hi vis gear holds his hand up saying no.
Coronavirus News

Own BHP (ASX:BHP) shares? Here's how the ASX 200 miner is battling COVID

Mining unions have not generally supported mandatory vaccinations.

Read more »

Female worker sitting desk with head in hand and looking fed up
Coronavirus News

Here's what Rio Tinto (ASX:RIO) boss says is 'causing some challenges' right now

The Omicron variant is spreading in Western Australia.

Read more »

A man wearing a mask punches the air with joy after getting a negative COVID result on a rapid antigen test.
Coronavirus News

Why are ASX COVID test shares climbing today?

COVID-19 tests are in focus again today.

Read more »

a girl stands in an apple orchard holding two red apples in raised arms with a happy, celebratory look on her face with a large smile and a pretty country background to the picture.
Economy

CBA reveals the Australian economy's leading state amid COVID surge

The states and territories have all been impacted by the pandemic.

Read more »

Rapid Antigen Test taking place.
Share Market News

Why is Ellume hitting headlines today?

Brisbane-based diagnostics developer Ellume is back in the headlines.

Read more »

A woman looks quizzical as she looks at a graph of the share market.
Share Market News

Inghams (ASX:ING) share price sinks as Omicron bites

Inghams shares are down as COVID hurts its operations.

Read more »