By Sam Boughedda
Investing.com — Avaya Holdings Corp (NYSE:AVYA) shares strengthened 22% Monday after it reported better than expected fourth-quarter results.
The U.S. technology firm announced earnings per share of 77 cents on revenue of $760 million. Analysts polled by Investing.com anticipated EPS of 72 cents on revenue of $740.87 million.
Jim Chirico, president and CEO of Avaya, wasupbeat in his comments:
“Fiscal year 2021 for Avaya was a year marked by many firsts, and the outstanding results we delivered exceeded expectations on most every front. Most impressive is the fact that we reversed over a decade of annual revenue declines, delivering year over year growth closing up approximately $100 million, while we also grew ARR 177% to $530 million.”
Looking ahead, the company said it sees FY2022 revenue at $2.975 billion to $3.025 billion, with EPS for the period coming in at f $2.85 to $3.03. Focusing even further in the future, the company expects revenue growth in the low to mid-single-digit percent range year-over-year in fiscal 2023 and in the mid-to high-single-digit percent range year-over-year in fiscal 2024.
Earlier this month, Cowen analysts lowered the price target on Avaya shares to $33 from $40, while keeping an outperform rating, saying margin pressure will persist longer than anticipated. Avaya shares are trading near $21.88.