Link Administration Holdings Ltd (ASX: LNK) shares are catching the eye on Tuesday.
In morning trade, the ASX 200 administration services company's shares are up 10% to $1.31.
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Why is this ASX 200 share jumping?
Investors have been fighting to get hold of Link's shares today after it released a trading update at its annual general meeting. As you might have guessed from the share price reaction, this update was a very positive one.
Despite the challenges presented by the current macroeconomic operating environment, the ASX 200 share has been able to upgrade the FY 2024 guidance that was first provided to the market back in August.
Firstly, for the first half of FY 2024, management expects operating earnings before interest and tax (EBIT) on a continuing operations basis to be around $90 million. This will be up approximately 10% on the prior year.
In light of this strong start to the year, it now expects full-year revenue growth of at least 6.5% and operating EBIT growth of between 7% and 9%.
As a reminder, Link was previously guiding to FY 2024 group revenue growth of at least 5% and operating EBIT growth of at least 6%.
Pleasingly, the ASX 200 share's CEO, Vivek Bhatia, believes the company can build on this over the medium term. Bhatia commented:
We are confident that our core businesses have the strength, the diversity and resilience required to navigate the current operating conditions. The underlying quality, capability and capacity of our continuing businesses remains extremely sound, and they are poised to deliver solid revenue and margin growth over the medium term.
Despite today's strong gain, this ASX 200 share is still down by 35% year to date.
