Why has the Aussie Broadband share price smashed 4 new 52-week highs in September?

This telco can't stop climbing. Here's why.

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A piggy bank on the cloud in the blue sky symbolising a record high share price.

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While most shares in the All Ordinaries Index (ASX: XAO) have struggled mightily in September so far (judging by the index's slump of 3.3% and counting), it's been an absolutely smashing month for the Aussie Broadband Ltd (ASX: ABB) share price.

On 31 August, Aussie Broadband shares clocked a new 52-week high of $3.73 a share at the time. But since the start of September, this All Ords telco has knocked another (at least) four 52-week highs out of the park. Yep, this month has seen at least four new 52-week highs clocked for the Aussie Broadband share price. What's more, all four have occurred this week.

Monday saw the shares hit $3.75 each. Then Tuesday had investors up the ante again with a new high of $3.89. Just yesterday, investors turned the dial-up, with a new peak of $4.10 a share for Aussie Broadband. And finally, today we've witnessed this telco blaze even further again to a very high indeed $4.20 a share.

So it's been quite a pleasing month for the Aussie Broadband share price and for shareholders. So much so, that this company is now sitting on an eye-watering gain of 16.25% for September so far.

Why does the Aussie Broadband share price keep cracking new 52-week highs?

The catalyst for all of these new 52-week highs seems to be the well-received earnings report we got from Aussie Broadband back on 25 August.

As we covered at the time, this earnings report had more than a few pleasing metrics for investors to digest.

Aussie Broadband reported that its revenues for the financial year rocketed 23.1% to $788 million. Margins were up 2.1% to 35.4%, which enabled the company to stretch its net profits after tax from $1.3 million in FY22 to a whopping $21.7 million in FY23.

Management also guided for an earnings before interest, tax, depreciation, and amortisation (EBITDA) of $100-110 million for FY24, which would be an increase of 12%-23% on the $89.6 million the company brought in FY23. That itself was a 52.1% rise over FY22's EBITDA. 

On the day these results came out, the Aussie Broadband share price soared 10.97%. The shares climbed by a further 3.78% by 31 August, and then of course added the 16.25% over September thus far that we discussed above. See for yourself below:

As such, these earnings seem to be why investors are piling into the Aussie Broadband share price, and have rewarded the company with a flood of new 52-week highs.

No doubt investors will be hoping the new high watermark will keep on coming. But we'll have to wait and see if the company can beat out its all-time highs of almost $6 a share that we saw back in April 2022.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband. The Motley Fool Australia has recommended Aussie Broadband. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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