Guess which ASX 300 stock is jumping 13% on guidance upgrade

A profit upgrade has gone down well with investors today.

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The market may be struggling to find its legs on Monday but the same cannot be said for one ASX 300 stock.

Thanks to the release of an update on its guidance today, this stock is up significantly in early trade.

Which ASX 300 stock?

The stock in question is Hansen Technologies Ltd (ASX: HSN).

It describes itself as a leading global provider of software and services to the energy & utilities and communications & media industries.

The ASX 300 stock notes that its software helps customers create, sell, and deliver new products and services, manage and analyse customer data, and control critical revenue management and customer support processes.

At the time of writing, Hansen's shares are up over 13% to $5.43.

Why is it jumping?

Investors have been fighting to get hold of the company's shares this morning after it upgraded its earnings guidance for FY 2025.

According to the release, the ASX 300 stock's operating revenue is actually expected to come in lower than guided to at $391 million to $393 million (from $398 million to $405 million).

But thanks to a quicker than expected turnaround in the Powercloud business, together with improved operating efficiencies and disciplined cost management, underlying EBITDA is forecast to be between $110 million and $112 million for the year.

This is a big improvement on its previous guidance range of $92 million to $101 million.

Also ahead of expectations will be its cash EBITDA, which is now forecast at $92 million to $94 million (from $76 million to $85 million).

What about the revenue miss?

The good news is that its revenue miss is due largely to project timings and should show up in FY 2026. The ASX 300 stock explains:

Industry tailwinds from both Hansen verticals are driving increased demand for the Group's products and services globally. However, due to project timing and customer-driven factors, some revenue will shift to FY26, resulting in a modest adjustment to the previous revenue guidance as outlined below.

Notwithstanding this adjustment, FY25 is still expected to deliver solid operating revenue growth of approximately 11% compared with FY24, and growth of approximately 5% excluding the impact of the powercloud acquisition. The Company has a solid pipeline of committed business and remains optimistic about its growth potential beyond FY25.

Following today's strong gain, the Hansen Technologies share price is now up over 20% since this time last year.

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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