IRESS (ASX:IRE) was out with their first half 2018 result today and the market sent the stock sharply higher in early trade (+14%). While consensus numbers are brief given it was only a half yearly result, they have produced a very strong outcome in the first 6 months which would imply that the market is now too conservative on full year estimations. For the half, profit was up 8% at $32m.
In terms of the outlook, they maintained their current guidance of 3-7% segment profit growth despite the strong first half, however we’d expect some upgrades to full year numbers to flow through on the back of today’s results.
IRESS (IRE) Chart
Market Matters Take/Outlook
We held IRE in the Growth Portfolio as a short term trade, and today we took the opportunity to sell into strength.
