Q2: Huge Revenue Beat with Reaccelerating Points Transacted.This Quarter could mark the turn in the underlying business that I have been waiting for to get bullish. Revenue up a massive 24% with and EPS beat of 0.06/share when we were looking for 0.05/share.
More importantly under the hood it looks great. Finally getting that large reaccelerating of # of Points Transacted 630,489 (up 7% YoY) and Total Points 6,633,624 (up 24% YoY). This has been what I have been waiting for to get real bullish on the name and add to it.
The underlying core of the business is starting to reaccelerate right as they begin to roll out their growth initiatives of Points Travel and Loyalty Wallet. This triple threat of growth sets up real well into the second half of 2016 and for all of 2017 for driving both revenue and EPS growth.
They should continue to drive significant revenue growth and ramp EPS growth going forward as margin compression has troughed and YoY compares begin to be real easy for them to beat going forward driving significant EPS growth for the next 4 quarters.
Time to Load up, Adding Tomorrow.