What happened to the Altium Ltd share price?
At the time of writing, shares of Altium Ltd [ASX:ALU] are up by 21.2%, to $32.81 per share.
Why did Altium Ltd shares push higher?
Altium ― an electronic design software company ― announced financial results for the half-year ended 31 December 2018. Altium achieved strong revenue of US$78.1 million, growing 24% over the past year. The earnings before interest tax, depreciation and amortisation (EBITDA) margin was 36.3% as a result. That’s pretty healthy. The company saw a 58% jump in net profit after tax to US$23.4 million for that reason.
What’s up next for Altium Ltd?
The share price reacted positively to the news:
Altium has traded sideways over the past year. And, thanks to the half-year profit result, the share price is hitting five-year highs. Looking at the charts, shareholders need a monthly closing above $30 per share. That would suggest that higher highs are possible soon. The share price is looking exceptionally bullish.
Altium CEO Mr Aram Mirkazemi commented:
‘Revenue growth of 24% and an EBITDA margin of 36.3% demonstrate the power of momentum in our business and our commitment to consistent and sustainable growth over the long term. From China to EMEA to Octopart and to TASKING, we can see the effect of momentum driving sustained growth. I have no doubt that this momentum will take us to our $200 million revenue target in 2020.’
Altium wants to become a PCB (Printed Circuit Board) market leader by 2020, with a long-term goal of gaining market dominance by 2025. There’s a good chance this could happen, mind you. The company’s business model is picking up speed, especially within the transactional sales organisation. Altium believes it’s on track to hit 100,000 subscribers once it implements a number of initiatives, such as greater account based intelligence.
The bottom line: the share price is in a strong uptrend and the business is doing well. If the company continues to hit goals, the share price could potentially move towards the $50 mark over the next few years.
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