Why Agilysys Shares Soared
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What: Shares of Agilysys have soared today by as much as 11% after the company reported earnings.
So what: Revenue in the fiscal fourth quarter rose 21% to $63 million, with the company's retail segment driving nearly all of those gains. Non-GAAP net income per share came in at $0.15, swinging into the black relative to the $0.16 per share adjusted loss a year ago. CEO James Dennedy said the company outperformed its expectations for the year.
Now what: The company recently announced that it was divesting its retail group for roughly $35 million, which is expected to close later this summer. The consolidated figures include the retail segment's results. After the deal closes, Agilysys intends to focus its efforts exclusively on its hospitality business, which grew a modest 3% this quarter. Dennedy said the company plans to continue investing in the hospitality business, which may include acquisitions, to drive future growth.
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The article Why Agilysys Shares Soared originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. 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.
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