Yesterday certainly was one of the busier days of earnings season. With the likes of Altium Limited (ASX: ALU), Blackmores Limited (ASX: BKL) and Qantas Airways Limited (ASX: QAN) all reporting their results, it’s not a surprise that a few slipped under the radar.
Three great results that went largely unnoticed are as follows:
Dicker Data Ltd (ASX: DDR)
The founder-led wholesale distributor of computer hardware, software and related products released a great half-year result yesterday which revealed a 24.7% increase in net profit after tax to $25.6 million. During the period revenue rose 11.1% to $590.3 million thanks partly to new vendors added in FY 2015, but mainly due to a 6.7% rise in sales from its existing vendors. Dicker Data declared a 4 cents per share quarterly dividend, bringing its half year dividend to 7.85 cents per share. Annualised this would equate to a whopping fully franked 8.2% dividend. Based on these results the company is tracking ahead of its forecast and as a result it expects to achieve its previous guidance of $35 million in pre-tax operating profit for FY 2016. At just 12x annualised earnings and paying a market-beating dividend, I feel Dicker Data would be a great investment today.
Rhipe Ltd (ASX: RHP)
The share price of this growing cloud channel company surged 18% yesterday after it reported a 32% increase in revenue to $143 million. Rhipe drives the consumption of cloud software subscriptions and services through its growing channel of IT service provider partners across Australia, New Zealand, and South East Asia. At the start of the financial year the company launched its Microsoft Indirect Cloud Solutions Program. The program allows Rhipe to wholesale Microsoft’s public cloud offerings such as Office365, Azure, and Enterprise Mobility Suite to its reseller channel on a monthly subscription pay-as-you-use basis. This has clearly been a big success judging by the 54,000 Office 365 seats it has sold on a monthly subscription basis at approximately $13 per seat, per month.
Spotless Group Holdings Ltd (ASX: SPO)
Shares of this cleaning and catering services company surged 7% yesterday despite it reporting a 14% drop in net profit after tax to $122 million. Whilst the result in itself offered little to get excited over, it was the commentary provided by Spotless chairman Margaret Jackson that appears to have caught the eye of investors. She stated that the short-term issues that led to the share price plummeting 40% at the start of December have now been resolved. Furthermore, following its strategy reset the company expects growth and attractive returns for FY 2017 and beyond. Things are certainly beginning to look up for its shareholders after a difficult nine months.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.