Enero (ASX:EGG) share price leaps 22% to 52-week high. Here's why

A positive update from the marketing and communications company is exciting ASX investors today.

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The Enero Group Ltd (ASX: EGG) share price has a new 1-year high. The positive price movement comes after the company released a trading update for this financial year.

At the time of writing, shares in the marketing and communications services company are trading for $3.45 – up 11.65%. Earlier today, the Enero share price hit a 52-week high of $3.76, up 21.7% on yesterday's closing price.

Let's take a closer look at today's news.

Enero company profile

Enero Group is a creative technology company operating a global collective of marketing and communications specialist agencies.

Its portfolio includes:

  • Digital agency Orchard
  • Creative agency BMF
  • Brand, marketing and PR comms consultancy Hotwire
  • Programmatic marketing platform OBMedia
  • Issues management comms advisory CPR
  • Strategic data consultancies The Leading Edge and The Digital Edge.

Enero share price up as revenue increases nearly 23%

In its investor presentation, Enero provided the following update:

These results are clearly encouraging for investors, at least judging by the rising Enero share price today.

What's the outlook and is this affecting the Enero share price?

Looking forward, Enero says it continues "to see a strong pipeline of new business opportunities", especially in the healthcare, technology, and consumer business-to-business markets.

The company goes on to say that inorganic growth continues to be a strong focus for Enero. Inorganic growth is a result of mergers and acquisitions rather than an expanding customer base.

Finally, Enero says ongoing uncertainty relating to COVID-19 may place pressure on the company's bottom line. Enero cites possible wage growth cost pressures and increasing discretionary travel expenses as borders open up.

Despite these headwinds, the Enero share price is rising today.

Enero share price snapshot

Over the past 12 months, the Enero share price has increased 89.5%. Year to date, shares in the company are up 62%.

Enero has a market capitalisation of approximately $303 million.

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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