Half Year Results 

Sophos shares sink on ditched targets

Sophos shares sink on ditched targets

Sophos (SOPH) had a quarter of its market value wiped out on results day after the cyber security specialist failed to reiterate full-year targets in relation to billings and adjusted operating profit. The group had previously dampened expectations – partly on the basis of tough comparators – as it had enjoyed enormous growth through FY2018, with renewal rates buoyed by high-profile global breaches. But it now looks as though it will struggle to achieve “mid-teens” billings growth in the second half, obviously to the annoyance of investors. Billings for the period rose by 2 per cent at constant currencies to $361m, but this pales against the 22 per cent growth rate achieved at the same point in 2017.

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