Spirent Communications sees flat earnings after tough year

(Sharecast News) - Telecoms testing company Spirent Communications said it expected flat annual earnings and lower revenues after a "challenging" year but reported a strong uptick of order growth in the fourth quarter.

Full year adjusted operating profit for the 12 months to December 2023 is forecast to be similar to 2023's $45.2m.

Revenue growth in the fourth quarter, and for second half of the year was 5%, resulting in full year revenue of around $460m, compared to $474m in 2023 as a return to growth in North America and Europe offset a fall in China, it added.

The news comes a day after Britain's competition regulator said it would be launching a probe into Keysight Technologies' £1.16bn bid for the company.

Spirent said there were early signs of a market recovery as second half order growth mitigated the weaker first six months, bringing full year orders to a level comparable to 2023.

"As previously stated, the telecommunications sector continued to be very challenging in 2024. By continuing to invest in our leading products we have been able to support our customers as they continue to progress their 5G related roll out programmes with a focus on targeted network expansions and improved quality and coverage," Spirent said.

"Looking ahead, in Asia we expect to increase our focus on growing our customer base in various geographies, including Japan and India, where we expect to make more progress as we enter the new financial year."

Reporting by Frank Prenesti for Sharecast.com