Earnings upgrade: This little ASX share is leaping 12% to record highs today

This All Ords share just hit a new all-time high. Here's why.

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It's been a pretty dreary start to the week for most ASX shares so far this Monday. At the current point of the trading day, the All Ordinaries Index (ASX: XAO) has shed a miserly 0.05%. That puts the Index at just under 7,520 points. But one little ASX share is shining brightly today in the face of this broader market negativity.

The Duratec Ltd (ASX: DUR) share price is on fire today. Right now, Duratec shares are up a healthy 8.7% at exactly $1 each. But earlier this morning, the Duratec share price climbed as high as $1.03 a share, up around 12% at the time. Not only is $1.03 a share a new 52-week high for Duratec, but it's also an all-time, record high. Yes, Duratec shares have never been higher than they were this morning:

So what's going so right for this investment holding company?

Duratec shares hit record high as company reveals earnings bump

Well, it seems this fresh new high for Duratec is a result of an ASX announcement Duratec released to investors this morning before market open. In this announcement, the company revealed some changes to its revenue and earnings guidance for the 2023 financial year.

It was only back in February that Duratec declared that it was expecting to bring in between $420 million and $460 million in revenue for FY2023. But this morning, the company revised this target range to between $465 million and $495 million.

In terms of earnings before interest, tax, depreciation and amortisation (EBITDA), Duratec previously flagged EBITDA for FY2023 to come in between $32 million and $35 million. But this has also been revised, to a range of $36 million and $39 million.

In FY2022, the company pulled in a total of $310 million in revenue and $19.3 million in EBITDA.

So no wonder investors are in such a good mood today.

Duratec credited these optimistic revisions to the company's "ability to convert key project awards to delivery in betterthanexpected timeframes and a strong growth and profit contribution from Wilson's Pipe Fabrication".

Duratec managing director Phil Harcourt also had this to say:

We are very pleased to be delivering a strong result for FY23 and outperforming initial expectations through a combination of contributing factors. These include the recent approval of contract variation claims, commencement of recently secured projects, increased productivity and reduction in risk allowance on a number of projects and a stronger than anticipated contribution from Wilson's Pipe Fabrication...

We continue to focus on maintaining and growing our order book, through the continually sourcing of identified opportunity and tendering at the required level to support the Company's growth into the future.

So this explains why Duratec shares are having such a stellar time on the ASX today. No doubt shareholders will be impressed by what the company has come up with.

At the current Duratec share price, this All Ords share has a market capitalisation of $224.2 million, with a dividend yield of 2.5%.


Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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