Here’s why Future stock price hit record highs today

Shares of Future PLC (LON: FUTR) skyrocketed 20% on Monday after the media company raised its full-year profit guidance as it continues to profit from the shift to digital media. As a result, Future stock price is trading at the all-time high above GBX1700.

Future estimated its adjusted operating profit through September 30 to be “materially ahead” of current market estimates, which range between £78.2 million and £83.2 million. Last month, the number of organic unique visitors in the United Kingdom increased by 25% and 40% in the United States, compared to the year-ago period. 

The Bath-based media company noted the strong cash conversion is facilitating the debt reduction. Future acquired TI Media a year ago and rolled out two new websites Advnture.com and Petsradar.com, in the summer. TI Media is making progress, said Future.

The company managed to save up about £10mln in synergies, £3 million of which benefited the current financial year. Hence, the company estimated cost synergies of £20 million per year by the end of the financial year 2021, beating the previous estimates of £15 million per annum.

“The results illustrate the strength, scalability and flexibility of Future’s business model, as well as business (and management’s) ability to absorb acquisitions effectively and drive synergies,” James, who has a buy rating on the stock, said in emailed comments.

Future stock price skyrocketed nearly 20% to trade above GBX1700 for the first time in its history. Shares of the company are now trading over 200% higher since March as the pandemic pushed readers to digital media. 

We believe that investors should be careful around these levels as potential profit-taking could lead to a decline in the market price. The previous all-time high around GBX1570 will now act as support, in case a pullback takes place. On the upside, the buyers are likely to target GBX1870 as their next target.

Shares of British media company Future PLC climbed today after the media giant raised its full-year profit outlook thanks to the profitable shift to digital media. Future stock price rose to a new all-time high above GBX1700. 

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