The global roll-out of 5G mobile networks continues to seed robust growth for communications testing kit designer Spirent Communications (SPT).
On Thursday (20 January 2022) the company flagged a strong end to 2021 when several important contracts were bagged. This means that management now anticipate profits to come in ‘slightly ahead’ of market forecasts, news that saw the share price rally nearly 7% to 246.1p, topping the FTSE 250 leader board and ending a 2022 year-to-date slide that has hit almost every growth stock.
Spirent, which provides market-leading testing kit for 5G, ethernet and Wi-Fi equipment, will report overall revenue growth of 10% for 2021, or 7% organic growth, to $576 million. This will deliver adjusted operating profit of at least $116 million, based on consensus forecasts, towards the top of analysts’ $113 million to $121 million range.
LONG-TERM EVOLUTION INVESTMENT
‘Spirent’s customers continue to invest in 5G-related infrastructure, devices and services, a trend we expect to continue,’ said Spirent chief executive Eric Updyke.
‘Our business model is becoming increasingly resilient, supported by a robust financial and operational platform, and we are pleased to begin the new financial year with a growing orderbook with improved visibility,’ he added.
Spirent expects to announce its full year results for the financial year to 31 December 2021 on 10 March 2022.