The Motley Fool

Is Xero poised to deliver a stellar half-year report?

The peers of Xero Limited (ASX: XRO) have all posted strong results this reporting season. Could the Xero share price be ready for the next leg up? 

How did the WAAAX stocks perform?

WiseTech Global Ltd (ASX: WTC) reported a bumper result with revenues soaring 57% and net profit rising 33%. Its share price has been going gangbusters, launching more than 30% since the day of its result, two weeks ago.

Altium Limited (ASX: ALU) also delivered a strong report with expanding profit margins and net profit rising 41%. The company is confident in achieving its near-term goals of 100,000 Altium subscribers for its printed circuit board design software and US$500m revenue by 2025. Altium subscription/subscribers are a vital source of continuous revenue, the Altium Designer 14 pricing starts at $7,245 USD for a one year subscription. The Altium share price is up more than 10% since its report on August 19.

The Afterpay Touch Group Ltd (ASX: APT) share price has gone parabolic having more than doubled all its metrics across sales, customer base and active merchants. While its share price is up more than 30% in just eight trading sessions, the company has a lot more to give.

The Appen Ltd (ASX: APX) share price has experienced some turbulence, soaring 10% the day before the release of its earnings and nose diving some 15% on the day of the announcement. In light of such volatility, Appen delivered some pleasing figures with revenue up 60%, NPAT up 67%, integration and synergies with its acquisition of Figure Eight and Leapforce.

Is Xero the lucky last?

Xero’s peers have set a very high growth benchmark, but I am confident that Xero is no laggard. In the company’s 2019 Annual Meeting held on 15 August, management alluded to a stellar FY19 performance. The company cited a 31% growth in subscriber numbers over FY19, with particularly strong numbers in international markets. A net 432,000 subscribers joined Xero in FY19, taking overall subscriber numbers to more than 1.8 million. Other metrics include operating revenue for the year increasing by 36% and reported EBITDA increasing by 52%.

FY19 represents a significant milestone year for Xero as it delivers a positive free cash flow result for the first time. It cites a free cash flow of $6.5 million compared to last year’s negative $28.5 million.

Xero will report its half-year update in November 2019. I believe the company will deliver pleasing results that are at or above market expectations.

NEW! Top 3 Dividend Bets for 2019

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. Each of these three companies boasts fully franked yields and could be a great fit for your diversified portfolio. You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, Altium, WiseTech Global, and Xero. The Motley Fool Australia owns shares of Appen Ltd. 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new 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 2.8% 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.

CLICK HERE FOR YOUR FREE REPORT!