Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com -- Shares of ZigUp climbed 2.9% on Wednesday after the company released a trading update indicating that it expects to finish the fiscal year 2025 ahead of market expectations.
The positive forecast is attributed to strong demand for rental products in Spain and the UK & Ireland, with a notable 6% increase in Vehicles on Hire year-on-year (YoY) as the company invested in fleet expansion during the second half of 2025.
The company’s Claims & Services division showed improvement in the second half of the year over the first half, with hire-length tailwinds from the post-Covid era now normalized.
ZigUp also extended several contracts during this period, including one with DLG, and added new insurance and broker partners. The net debt to EBITDA ratio is anticipated to align with the guidance at approximately 1.8 times.
Looking ahead, management guides for the fiscal year 2025 to be "modestly ahead" of market expectations and foresees "strong" structural growth drivers for fiscal year 2026, instilling confidence in the company’s underlying growth opportunities.
"ZigUp’s trading update this morning continues the group’s track record of gently beating consensus expectations, and it is encouraging to see the expected improvement in Claims & Services come through after a challenging 1H25, which included the impact of a cyber-security incident," according to Jefferies analysts.
Jefferies expect consensus Adj PBT could potentially move up by c2% on the back of this update.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.