The market may be falling again on Friday, but the same cannot be said for one ASX 200 tech stock.
That tech stock is Iress Ltd (ASX: IRE).
At the time of writing, its shares are up 8% to $9.37.
As a comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.7% to 8,272 points.
What is Iress?
Iress is a technology company that provides software to the financial services industry. It provides software and services for trading and market data, financial advice, investment management, superannuation, life and pensions, and data intelligence in Asia-Pacific, North America, Africa, the UK, and Europe
In respect to trading and market data, more than 12,000 institutional, retail, and online traders around the world use the ASX 200 tech stock's trading and market data software. They use it to connect across multiple markets, monitor and manage risk, access end-to-end multi-asset trading support, and deliver better performance.
Why is this ASX 200 tech stock jumping?
Investors have been fighting to get hold of Iress' shares this morning following the release of an update on its guidance for FY 2024.
As a reminder, the company was guiding to adjusted EBITDA of $126 million to $132 million.
Depending on where it lands in this guidance range, it will either be a small decline or small increase on the $128.3 million it recorded in FY 2023.
Well, the good news is that management has revealed that it now expects to hit the top end of its earnings guidance range this year. It said:
Iress today reaffirmed its FY24 guidance of $126m-$132m Adjusted EBITDA, with expectations it will achieve full year earnings towards the top end of the range.
This is good news as it should bring to an end a run of lower earnings and could be a sign that the company is now positioned for a return to growth.
And even more importantly, it appears to indicate that dividend payments will be returning in the near future.
The ASX 200 tech stock's CEO and managing director, Marcus Price, revealed that its transformation program has been behind this improved performance. He said:
Iress' transformation program concludes delivering the expected benefits and earnings improvement. With this momentum and the foundations for growth now in place, we are well placed to enter 2025 as a financially and strategically stronger, more streamlined business with dividends to be reinstated.
Following today's gain, Iress' shares are now up almost 20% since this time last year.
