One of the worst performers on the market today has been the Iress Ltd (ASX: IRE) share price.
In morning trade the financial services company's shares are down a disappointing 5% to $10.93.
What happened?
This morning IRESS provided the market with a trading update and as you might have guessed with the share price decline, it wasn't a positive one.
According to today's update, while the company is on course to deliver strong revenue growth in the second-half of FY 2017, the same cannot be said for its Segment profit (EBITDA plus share-based payments & non-recurring items).
On the top line management expects FY 2017 revenue in the region of $435 million and $440 million on a constant currency basis. This equates to 12% to 13% growth year-on-year.
However, due to increased costs and the timing of client decisions, IRESS expects Segment Profit between $123 million and $128 million on a constant currency basis in FY 2017, compared to $123.5 million in FY 2016.
Should you buy the dip?
I think IRESS is a quality company and could be worth a look after today's decline. Especially given how bullish its CEO Andrew Walsh is on the future. He believes that its market-leading products are long-term drivers of growth and the increased costs are just short-term issue. I would agree with this view.
In light of this, I think it could be worth considering an investment in IRESS on today's share price weakness and would rank it up there with fintech companies such as Praemium Ltd (ASX: PPS) and Afterpay Touch Group Ltd (ASX: APT).
