Q3: Record Revenue Growth of 29% with EPS Growth of 66%...What a Quarter, after a year in the depths of the stock market penalty box this company has put up back to back great quarters on margin re expansion on the back of the bank licence revenues starting coming through. The weakness in the USD dollar is such a strong tailwind for Currency Exchange and with CDN central bank jacking up rates this trend is just getting going.
I Bailed on the story after Q1 when net operating margins were collapsing down to the 5% range but the story has bounced back.
Record Revenue up to 9.9M up 29% and transactions up to 300,000 up 44%. The big thing that has me real bullish is the reacceleration in operating margins Q3: 36.48% (2016: 33.78%) and on a QoQ improvement in 2017 Q1: 4.76% and Q2: 19.86%. This margin improvement has been driven by transaction volume growth and is the driver behind the reacceleration in EPS growth.
Jerome Hass described it right on but just missed the timing when to be bullish RIGHT NOW!!! They spent the money to build out the infrastructure for growth and bank licence ramp and the revenue growth took 6-9 months to ramp up which you are just starting to see.
Unique asset that should always trade at a premium, see no reason why we don’t trade back to the old highs as they finally have the operating business figured out following the bank licence. That would take you back to 40.00/share or 60% upside.
LONG