Endava (NYSE:DAVA) shares rose more than 15% on Tuesday following the company’s reported strong Q3 results. EPS came in at £0.54, better than the Street estimate of £0.51, as the company continues to see sustained demand for digital transformation services, despite continued supply constraints and numerous macro headwinds, particularly in the UK. Revenue grew 33% year-over-year to £196.2 million, beating the Street estimate of £186.16 million.
While concerns around a potential macro slowdown and pullback in corporate spending will continue to linger, analysts at Deutsche Bank mentioned they are impressed by the company’s strong organic revenue growth profile and the company noted that it has seen revenue growth across all of its geographies.
Based on the continued demand for the company’s digital services and its increased guidance, analysts raised their 2023 EPS by £0.02 to £2.39 and their 2024/2025 EPS by £0.07/£0.08 to £2.99/£3.69.