By Katherine Hamilton

Agilysys investors are gaining confidence as the hospitality software provider builds momentum and moves forward with a potentially big collaboration with Marriott International.

Shares of Agilysys rose 20% to $99.95 on Tuesday. The stock has lost a quarter of its value this year, but has rallied in the past month.

Investors are optimistic about Agilysys after it beat expectations in its fiscal fourth quarter, turning around sales after a disappointing third quarter. Adjusted earnings per share were 54 cents, ahead of the 29 cents forecast by analysts, while sales were $74.3 million, compared with the anticipated $71.4 million.

While the company did post a lower-than-expected outlook for fiscal 2026, investors are heartened by the promise of a deal with Marriott International, Oppenheimer analyst Brian Schwartz said.

Management said Agilysys is still on track for its plan to deploy its property management system across Marriott International's luxury, premium and select-service hotels in the U.S. and Canada. The Marriott partnership wasn't included in 2026 guidance.

"Investors are looking beyond next year and to 2027 financials to value the stock," Schwartz said.

Agilysys in January lowered guidance and missed on its top and bottom lines for its third-quarter earnings, sending shares down. The stock plummeted from $129 at the start of the year to a 52-week low of $63.71 in early April following tariff news. Tariffs and economic uncertainty have pressured travel-related stocks, with airlines and lodging companies highlighting a slowdown in demand.

Agilysis said during Monday's call with analysts it didn't expect a direct impact from tariffs. Schwartz views the company's lower-than-expected guidance as prudent given the uncertainty in travel.

"It is also a clearing event by reducing risk to estimates," he said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

May 20, 2025 14:06 ET (18:06 GMT)

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