Cybersecurity firm OneSpan surges on strong annual revenue forecast
07/03/2024 13:57
March 7 (Reuters) - OneSpan OSPN.O rose 30% in
premarket trading on Thursday after it posted an upbeat revenue
forecast and beat quarterly profit expectations, fanning
optimism among investors about healthy demand for cybersecurity
services.
The Boston, Massachusetts-based company joined larger peer
Crowdstrike CRWD.O , which had sparked a rally in cybersecurity
stocks last week after it signaled that demand for cybersecurity
products would stay stable.
If the premarket gains hold, OneSpan will see its best day
at the stock market in about eight months and add around $115
million to its market value.
The company forecast revenue between $238 million to $246
million for fiscal year 2024, above analysts' average estimate
of $239.65 million.
"We ended the year on a high note led by strong operational
rigor and accelerated cost reduction actions over the second
half of 2023, said OneSpan interim CEO Victor Limongelli, who
took over the role in January.
OneSpan reported an adjusted per-share profit of 19 cents
for the fourth-quarter, topping expectations of 3 cents,
according to LSEG data.
The company also said it had cut headcount by 5% in the
quarter.
Brokerage D.A Davidson raised its price target on the
company, which offers a range of digital identity and anti-fraud
solutions, to $12 from $9.5.
Reuters had reported last year that OneSpan, which had
become the target of activist hedge funds such as Legion
Partners Asset Management, was exploring options including a
sale of the company.
Two of four analysts have a "buy" or higher rating and two
analysts rate the stock a "hold," with a median target price of
$12.
(Reporting by Priyanka.G in Bengaluru; Editing by Tasim Zahid)
((Priyanka.G@thomsonreuters.com;))