UPDATE: Actrade has Knockout Second Quarter TODAY
I. I. A N A L Y S I S
Analyst: Bob Hirschfeld (2/2/99)
On Monday, Actrade International (NASDAQ: ACRT) announced results for its fiscal second quarter of 1999 that blew away year-ago results.
Second quarter sales, for the period ended Dec. 30, 1998, rose 99% to $46 million, from $23.1 million, and earnings per share increase almost 46% to $0.19 per share, from $0.13 a year ago. This innovative international trade and finance services company was a 1998 Magic 25 pick.
The excellent results mark the 11th straight quarter that Actrade has recorded an increase in sales and earnings per share (EPS) over its year-ago quarter.
The results were spearheaded by a strong showing at the company's Trade Acceptance Draft (TAD) program, which was responsible for $28.2 million in sales, up from $13.3 million one year ago. Actrade COO Alex Stonkus notes that TAD works like a credit card used in the business-to-business market. He said Actrade signed up more new customers this past quarter for the TAD program than in any previous quarter.
Analyst Stuart Barich, who follows Actrade for Auerbach, Pollak, and Richardson, told IIOnline that 'everything at Actrade is beyond on target,' adding that though he had estimated $41 million on top and $0.16 per share in EPS, Actrade grew 'beyond anything I'd expected.'
Barich added that Actrade is 'currently doing everything right, the only disappointment being that the stock price hasn't moved.'
Bottom Line:
Barich noted that Actrade is selling at only about 20 times while growing EPS at around 40 times. Given his current estimates, he believes shares are worth $25, though he cautions that his target may be too conservative. On Monday, Actrade shares closed unchanged at $14.13. |
