(Reuters) – OneSpan 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, 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)
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