Spread betting firm CMC Markets (LSE: CMCX) has upgraded its full-year earnings guidance, sending its shares surging 25% to close at 137.65p.
The company now expects net operating income of £290-310 million for the 12 months ending March 31, up from previous expectations of £250-280 million. This would represent a slight increase from £288.4 million in financial 2023.
CMC said improved market conditions and an increased contribution from its institutional business underpinned the better-than-expected trading in the fiscal third quarter. The company will provide a full-year update on April 9.
In November, CMC reported a £2.0 million pre-tax loss for the six months to September 30 as revenue dropped 20% to £122.6 million, impacted by lower client activity and “uncertain” markets.
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However, CMC said it still anticipated meeting its initial full-year earnings guidance, despite the interim loss. The upgraded outlook suggests trading conditions have now rebounded.
Shares in CMC have plunged 40% over the last 12 months amid a difficult environment. But its increased institutional revenue and improved market outlook helped spark today’s share price surge.
