2 ASX 300 tech shares making huge moves on earnings updates

The market has responded very differently to these results.

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There have been some big moves on the ASX 300 index on Wednesday following the release of results.

Two ASX 300 tech shares which are heading in very different directions are listed below. Here's what they reported:

Codan Ltd (ASX: CDA)

The Codan share price is up 10% to $9.30. This follows the release of the electronic products company's half-year results.

The ASX 300 tech share reported a 26% increase in group revenue to $265.9 million and a 24% lift in net profit after tax to $38.1 million.

This was driven by strong growth across its Communications and Metal detection businesses. Communications revenues increased 12.5% to $153.6 million whereas Metal detection revenues were up 49% on the prior corresponding period.

And with its Communications order book sitting pretty at $183 million (+12% versus 30 June), the second half is looking promising.

Iress Ltd (ASX: IRE)

The Iress share price is heading the other way and was down as much as 11% to $7.75 at one stage.

The financial technology company's shares have recovered somewhat since then but remain down 6% at the time of writing.

Investors were selling the ASX 300 tech share following the release of its full year results for FY 2023. The company reported a 2% increase in operating revenue to $625.7 million but a 12% decline in underlying EBITDA to $128.3 million.

One positive is that the company's underlying EBITDA margin improved during the second half. It went from 18.9% in the first to 22.2% in the second. This sets up the company nicely going into FY 2024.

In fact, management advised that its exit run-rate implies underlying EBITDA of $160 million to $180 million in FY 2024. This would be an increase of 24.8% to 40% on FY 2023's result.

Motley Fool contributor James Mickleboro 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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