EML Payments Posts 'Weak' Trading Update, Impacted by 'Soft' Top Line Growth, Says Jefferies

MT Newswires Live
Nov 19

EML Payments (ASX:EML) delivered a weaker-than-expected trading update at its annual general meeting, mainly due to soft top-line growth, according to a Wednesday Jefferies note.

The company on Wednesday reported fiscal first-quarter revenue of AU$47.6 million, down from AU$48.8 million the previous year.

The underlying earnings before interest, tax, depreciation, and amortization (EBITDA) comparison with last year is "exaggerated" because more net overhead costs are falling into the fiscal first half, the note added.

The investment firm added that first-quarter growth is tracking below Jefferies and consensus estimates, and underlying EBITDA is also running behind expectations because net overheads are higher than forecast.

Jefferies kept a buy rating on EML with a price target of AU$1.40.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10