NEW YORK (TheStreet) -- Shares of CDK Global (CDK) were jumping 9.9% to $56.46 on heavy trading volume Tuesday after the digital marketing solutions company announced a new transformation plan to strengthen its business and enhance long-term value.
CDK President and CEO Steve Anenen announced the new plan to "transform the business through balanced organic revenue growth and significantly increased earnings" as the company's Investor Day in Chicago.
The company said it expects annual revenue to grow 4% to 5% annually over the next three fiscal eyars, and 5% to 7% after. CDK expects additional EBITDA of $250 million to $275 million will be generated in the next three fiscal years, resulting in margin expansions of about 1,300 basis points in those three fiscal years.
"This is the right path for CDK," Anenen said in a statement. "We are deeply committed to reshaping the organization and have a talented team to execute this program which will enhance long-term shareholder value. We are ready to transform our business and we are excited about this next phase in our journey."
About 3.1 million shares of CDK were traded by 12:09 p.m. Tuesday, above the company's average trading volume of about 1.2 million shares a day.