IRESS’ Fair Value Estimate Maintained Following Slightly Weaker-Than-Expected First-Half Result

Narrow-moat rated IRESS’ first-half result was slightly weaker than we expected, and we have lowered our short-term earnings forecasts. The company provided 2020 earnings guidance with the 2019 financial result in February 2020, comprising segment profit excluding share-based payment growth of between 3% and 8%, to between AUD 156 million and 164 million, and nonoperating costs of AUD 3 million to 6 million. This guidance was withdrawn in April 2020 following the surge in coronavirus cases in Australia and associated movement restrictions.