What happened
Shares of Agilysys (AGYS -0.02%), a hospitality software company, were climbing higher today after the company reported better-than-expected fourth-quarter results that surpassed Wall Street's top- and bottom-line estimates.
The tech stock had gained 12.7% as of 10:45 a.m. ET.
So what
Agilysys reported sales of $46.6 million -- up 28.3% from the year-ago quarter -- which easily beat analysts' consensus estimate of $43.8 million for the quarter.
Image source: Getty Images.
The company's earnings also came in ahead of Wall Street's expectations. Agilysys reported non-GAAP (adjusted) earnings per share of $0.24, up from $0.21 in the fourth quarter of 2021 and ahead of analysts' average estimate of $0.17 per share.
Agilysys CEO Ramesh Srinivasan said in a press release that the company had its "best ever" quarter for revenue, "Despite lingering pandemic related and other business environment challenges in the hospitality industry across Asia, Europe, and managed food services ... "
The company also highlighted the fact that its subscription revenue increased 32.8% from the year-ago quarter and now comprises 48% of Agilysys' total recurring revenue, which is up from 42% in the fourth quarter of 2021.
Adding to the positive sentiment toward Agilysys' stock was the fact that Craig-Hallum analyst George Sutton raised his price target for the stock today from $45 to $50 and kept his buy rating for Agilysys.
Now what
Investors should be happy with the company's latest financial results, as well as with its full-year 2023 guidance. Management said that revenue will be in the range of $190 million to $195 million, considerably higher than Wall Street's average estimate of $187.6 million.
With today's gains, the company's share price movement has been nearly flat over the past three months, which, in this volatile market, is far better than most technology stocks right now.
