(Reuters) -Sweden's Hexagon on Thursday reported an unexpected rise in fourth-quarter adjusted operating profit, citing good momentum in its software portfolio, sending shares in the industrial technology group up more than 5% in morning trade.
"In the face of an uncertain global economy, we benefit from an increasingly resilient business, fuelled by growing software and recurring revenues, and investments focused on structurally attractive markets and industries," CEO Paolo Guglielmini said in a statement.
The company said adjusted operating profit excluding capital gains on shares in group companies and adjustments for the October-December period stood at 438.4 million euros ($473.25 million) against a year-ago 418 million, above the 417.3 million euros expected by analysts in an LSEG poll.
JP Morgan said Hexagon's free cash flow was strong after weak developments in prior quarters, benefitting from a significant working capital inflow.
Hexagon's sensors and software are used for measurement and quality inspection in manufacturing processes and engineering plant design, as well as in infrastructure planning, construction, mining, agriculture and energy.
Shares in Hexagon were up 5.22% at 0823 GMT.
The company proposed a dividend of 0.13 euros per share for 2023, up from 0.12 euros the previous year.
In December, Hexagon confirmed its 2022-2026 mid-term targets of an average annual organic growth of 5-7%, and an EBIT operating margin of more than 30% by the end of 2026, among others.
($1 = 0.9264 euros)