Shares of Computershare Ltd (ASX: CPU) have hit a new all-time high, surging by 11.5% to $40.10 in early trading on Wednesday, marking a significant milestone for the $23.4 billion financial administration company. This latest spike has sent the stock soaring 60.1% higher compared to this time last year, excluding dividends.
While the broader S&P/ASX 200 Index (ASX: XJO) remains flat, Computershare is outperforming with remarkable gains driven by the company’s strong financial performance.
Impressive Earnings Growth Propels Stock Price
The catalyst behind the impressive surge in Computershare’s stock price is the release of its half-year results for the six months ending 31 December 2024 (1H FY 2025). Key financial highlights include a 6.4% year-over-year growth in management revenue, reaching $1.5 billion. This growth was fueled by strong performance across the company’s core business lines, particularly in recurring fees and transaction revenues.
Management earnings before interest and tax (EBIT), excluding margin income, totaled $171 million, a 27.9% increase from the previous year. Earnings per share (EPS) for the first half of FY 2025 were 65 cents, up 18.7% compared to 1H FY 2024.
Although margin income fell slightly by 0.8% to $392 million, primarily due to interest rate cuts, CEO Stuart Irving noted that margin income held up better than expected. The decline was mitigated by increased activity levels across the business, resulting in a $3 billion rise in average client balances.
Interim Dividend and Future Outlook
Computershare’s board has declared an interim dividend of 45 Australian cents per share, reflecting a 12.5% increase from the previous year’s interim payout.
In his statement, Irving expressed confidence in the company’s momentum, highlighting that the results demonstrate the success of its strategy to simplify operations while boosting returns. He also emphasized that Computershare remains well-positioned with a strong balance sheet and substantial cash flow, providing the flexibility to fund innovation, expand organically, and pursue acquisitions.
Looking forward, Computershare has upgraded its full-year earnings guidance. The company now expects Management EPS for FY 2025 to reach approximately 135 cents, representing a 15% increase from FY 2024 and a 7.5% revision higher than its previous guidance.
The ongoing strong performance and optimistic outlook are fueling investor confidence, and it appears Computershare’s growth trajectory will continue to attract attention in the months ahead.
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