The Atomos Ltd (ASX: AMS) share price is producing the goods on Wednesday. In early trade, the monitor recorder company's shares are up 9% to $1.05.
Today's performance takes the 1-year Atomos share price gain to 146%.
Why is the Atomos share price racing higher?
Investors are pushing Atomos shares higher today following the release of a trading update. The update pertains to the company's full year FY21 results for the period ending 30 June 2021.
According to the release, Atomos now expects to deliver FY21 sales in excess of $77 million. This would be a record result for the company. It would also represent a 73% increase on FY20 sales, which came in at $44.4 million.
While first half's revenue was slightly higher than the previous year ($32.8 million versus $32.6 million), momentum built into the second half. Specifically, 2H FY21 sales are more than $44.2 million, up 275% on the prior corresponding period.
Commenting on the result, Atomos Executive Chairman Chris Tait said:
We are delighted to be providing an FY21 sales guidance upgrade to at least $77m which is $6.6m ahead of analyst consensus. This has been an amazing performance by everyone on the Atomos team. It seems a long time ago, when, at the beginning of FY21, staff were still furloughed, and monthly sales were tracking at $3m.
In addition to revenue growth, the company expects record full-year earnings before interest, tax, depreciation, and amortisation (EBITDA) of circa 9% of revenue. More value-orientated investors could be finding the Atomos share price appealing on this news.
What's next for Atomos?
Looking ahead, the company will conduct an investor day on 2 August 2021. The event will be held both online and in-person in Melbourne. Barring any COVID-19 restrictions, it will offer an opportunity for investors to meet the Atomos executive team.
Based on Tait's comments, Atomos also has a strong pipeline of new products and technologies in development to drive further growth.
Such innovation is part of the reason some analysts still consider Atomos a hold, despite the strong share price rally.
