Cybersecurity firm OneSpan surges on strong annual revenue forecast (updated)
07/03/2024 15:55
(Adds share movement in paragraph 1)
March 7 (Reuters) -
Shares of OneSpan OSPN.O rose 19% to near seven-month
highs on Thursday after the company forecast upbeat full-year
revenue and reported quarterly profit above expectations,
fanning optimism among investors about healthy demand for
cybersecurity services.
The Boston, Massachusetts-based company's larger peer
Crowdstrike CRWD.O also forecast annual results above market
estimates, which had sparked a rally in cybersecurity stocks
last week.
OneSpan forecast revenue between $238 million and $246
million for fiscal 2024, compared with 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, which offers a range of digital identity and
anti-fraud solutions, also said it had cut headcount by 5% in
the quarter.
Brokerage D.A. Davidson raised its price target on the
company's stock 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.
Two of the four analysts covering the stock rate it "buy" or
higher and the remaining two "hold". They have a median target
price of $12.
(Reporting by Priyanka.G in Bengaluru; Editing by Tasim Zahid
and Maju Samuel)
((Priyanka.G@thomsonreuters.com;))