The Motley Fool

Why the Altium share price could rocket tomorrow

This afternoon Altium Limited (ASX: ALU) reported its half-year results for the period ending December 31 2018. Below is a summary of the results with comparisons to the prior corresponding half (all figures in US$).

  • Revenue of $78.4 million, up 24%
  • Net profit of $23.4 million, up 57%
  • EBITDA margin increased from 30% to 36.3%
  • Reported expenses of $49.8 million, up 12%
  • Earnings per share of 18 cents, up 57%
  • Interim dividend of A$0.16, up 23%
  • China revenue of $9.66 million, up 49%

As we can see this is another standout result from the California-based provider of software for designers who want to build the printed circuit boards that are required to connect to the internet in everyday electronic devices.

No wonder the CEO, Aram Mirkazemi, sounded ebullient in his commentary on the half and outlook claiming he had “no doubt” it would hit its $200 million revenue by 2020 target, with it looking to scale to 100,000 subscribers thanks to an expectation subscriber growth “will accelerate post 2020”.

Other positive features of the result include the strong EBITDA margin growth from 30% to 36.3% as the company’s attractive economics of recurring revenue come to a fore, while the 49% sales growth in China (albeit of a relatively low base) is also likely to excite investors.

The strong result and management’s confidence in the future could combine to send the Altium share price soaring above $30 tomorrow.

Others in the hot tech space yet to report this earnings season include Appen Ltd (ASX: APX) and WiseTech Global Ltd (ASX: WTC).

Top 3 ASX Blue Chips To Buy For 2019

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2019."

Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tom Richardson owns shares of Altium.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia owns shares of Altium, Appen Ltd, and WiseTech Global. 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 Scott Phillips.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.