Integrated Research hits all-time high after outperforming Bell Potter’s first half profit forecasts
Published 19-JAN-2017 13:00 P.M.
|
1 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Integrated Research (ASX: IRI), a provider of performance management software across IT infrastructure, payments and communications business segments has provided upbeat profit guidance for the first half of fiscal 2017.
Management said it anticipates profit after tax to be between $7.2 million and $8 million for the six months to December 31, 2016, struck on revenues of between $42.3 million and $44 million.
While analysts at Bell Potter were forecasting revenues in line with Integrated Research’s update, the broker was forecasting a net profit of $7 million.
Integrated Research’s higher than expected profit guidance could account for Wednesday’s 8% surge in the company’s share price.
Based on the bottom end of management’s guidance this represented year-on-year profit growth of approximately 16%.
Looking across possible revenue drivers, it would appear that the increase in license sales from $19.5 million in the six months to December 31, 2015 to a range between $22.5 million and $24.2 million in the first half of fiscal 2017 has had an impact.
The fact that Integrated Research generates a high level of recurring revenue through its license and maintenance fees is one of the reasons why Bell Potter rates the stock highly.
The broker noted in December that license fees and maintenance fees accounted for 54% and 32% of revenue respectively.
The broker has a buy recommendation on the stock with a 12 month price target of $3.50, representing a premium to Wednesday afternoon’s all-time high of $2.94.
It should be noted that broker projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
General Information Only
This material has been prepared by Jason Price. Jason Price is an authorised representative (AR 000296877) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C), and a Director of S3 Consortium Pty Ltd (trading as StocksDigital).
This material is general advice only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with personal financial or tax advice and does not take into account your personal objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, Jason Price, StocksDigital, any of their related body corporates or any other person. To the maximum extent possible, 62C, Jason Price, StocksDigital, their related body corporates or any other person do not accept any liability for any statement in this material.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.