Guess which ASX All Ords share just rocketed 25% on an earnings upgrade

Investors are bidding up the ASX All Ords share following an improved FY 2024 earnings outlook.

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Sports fans looking at smart phone representing surging pointsbet share price

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The All Ordinaries Index (ASX: XAO) is up a solid 0.5% on Monday, with one ASX All Ords share doing plenty of the heavy lifting.

Shares in the sports betting company closed Friday at 45.5 cents. In morning trade today, they rocketed to 57.0 cents, up a blistering 25.3%. After some likely profit-taking, they are currently changing hands for 51.5 cents apiece, up 13.2%.

Any guesses?

If you said Pointsbet Holdings Ltd (ASX: PBH), give yourself a virtual gold star.

Here's what's boosting the ASX All Ords share today.

Why is the ASX All Ords share soaring?

The Pointsbet share price is leaping higher after the company management announced upgraded earnings guidance for the full 2024 financial year (FY 2024).

The boosted outlook follows ongoing strong year-to-date trading in H2 FY 2024 and increased operational efficiency and productivity.

The ASX All Ords share now expects its normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) loss for the full year to be in the range of $4 million to $6 million. That compares to prior FY 2024 guidance of a full-year EBITDA loss of $9 million to $14 million.

Pointsbet highlighted the "significant improvement" from the $49 million normalised EBITDA loss it reported for FY 2023 for its continuing operations.

Commenting on the improved earnings outlook that's sending the ASX All Ords share rocketing, Pointsbet CEO Sam Swanell said, "Today's guidance upgrade is a result of the Company's continued strong trading performance together with improved efficiency and productivity."

Swanell added:

It is particularly notable to see that the company has been able to continue to deliver such impressive results, whilst simultaneously undertaking a complex technical and operational migration, separation, and re-organisation, with the recent completion of the sale of the US business.

We continue to invest for further growth, in particular in our core technology and product capabilities and our outsized marketing investment. This is driving our market share growth and setting the Company up for further success in FY 2025 and beyond.

How have Pointsbet shares been tracking

The Pointsbet share price charts of the past year can be somewhat deceiving, as shareholders will have fared better than the charts indicate.

That's because the ASX All Ords share has twice engaged in some sizeable capital returns to its shareholders over the year.

The last big share price plunge on 30 April came after Pointsbet shares traded ex-capital return for the 39 cents per share (totalling $127 million) that eligible shareholders received for the company's sale of its United States operations.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended PointsBet. 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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