Integrated Research share price on watch after half year profit guidance

The Integrated Research Limited (ASX:IRI) share price will be on watch on Monday after the release of soft profit guidance for the first half…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Integrated Research Limited (ASX: IRI) share price will be on watch today following the release of its half year profit guidance.

What did Integrated Research announce?

This morning the leading global provider of proactive performance management software for critical IT infrastructure, payments and communications ecosystems revealed that it has had a mixed start to FY 2020.

According to the release, although Integrated Research's revenue is expected to grow modestly in the first half, its profits have not grown at the same rate.

Revenue is expected to be in the range of $52.5 million to $53.5 million during the half. This represents 4% to 6% growth over the prior corresponding period.

This has been driven by solid growth in licence sales. These are expected to be in the range of $32.5 million to $33.5 million, representing 4% to 7% growth on the prior corresponding period. A strong performance by the company's Unified Communications product line and the continued growth in the Asia-Pacific operation are behind its licence sales growth.

Profit after tax guidance.

Things aren't quite as strong on the bottom line. Management expects to report a profit after tax in the range of $11.5 million to $12 million during the first half. This compares to a profit after tax of $11.7 million during the prior corresponding period. The low end of its profit after tax guidance range represents a decline of 1.7% and the top end implies growth of 2.5%.

This means another slowdown in profit growth for the performance management software provider.

In the first half of FY 2019 Integrated Research reported a 26% increase in profit after tax to $11.7 million. This growth then slowed in the second half, leading to full year profit growth of 14% to $21.9 million.

I suspect this could put a spot of pressure on its shares when they open on Monday.

Also releasing updates today are Resolute Mining Limited (ASX: RSG) and WISR Ltd (ASX: WZR). Their shares will also be on watch when the market opens.

Should you invest $1,000 in Acrux Limited right now?

Before you buy Acrux Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Acrux Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 3 April 2025

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Integrated Research Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Market News

5 fantastic ASX ETFs to buy with $5,000

These funds could be worth a closer look. Here's what you need to know about them.

Read more »

Happy young woman saving money in a piggy bank.
Share Gainers

3 ASX shares that would already have more than doubled your money in 2025

An investment in any of these ASX shares on 2 January would have more than doubled your money by now.

Read more »

woman talking on the phone and giving financial advice whilst analysing the stock market on the computer with a pen
Share Market News

How did your first quarter performance compare to Australian fund managers?

How did you measure up?

Read more »

A man working in the stock exchange.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A panel of four judges hold up cards all showing the perfect score of ten out of ten
Broker Notes

10 best shares to buy today in Australia

Analysts think these shares are among the best to buy now.

Read more »

A boy is excited because he won the computer game.
Share Market News

Telix: A masterclass in what this game is all about

Today's market darling reminds us why we love to invest. But is it too late?

Read more »

A happy youngster holds a giant bag of carrots at a supermarket fruit and vegie section, indicating savings made by buying in bulk.
Opinions

Are these the best US stocks to consider buying right now?

I think these stocks would do well in any portfolio today.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the week's trading today...

Read more »