Why Qiwi PLC Shares Surged
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Russian payment processor Qiwi PLC climbed 15% today after its quarterly results and outlook impressed Wall Street.
So what: The stock had pulled back sharply in 2014 on concerns about slowing growth, but today's Q1 results -- adjusted net income spiked 72% on a top-line jump of 46% -- coupled with upbeat guidance are quickly easing those worries. In fact, total payment volume increased 20% during the quarter, while operating margin expanded 930 basis points, to 56.9%, suggesting that Qiwi's competitive position and efficiency are rapidly improving.
Now what: Management now expects full-year adjusted profit growth of 27%-29% on a revenue increase of 25%-27%, up from its prior view of 25%-27% and 20%-22%, respectively. "Our strong financial performance demonstrates that we continue to execute and gain share in the fast-growing payments markets we serve," said CEO Sergey Solonin. "Looking forward, we will continue to focus on our core strategies of expanding the number of participants in our network, increasing the utilization of our services, and driving the adoption of Visa QIWI Wallet." Of course, with Qiwi shares now up about 180% over their 52-week lows, and trading at a forward P/E above 20, much of that growth potential might already be baked into the valuation.
More reliable ways to build wealth
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.
The article Why Qiwi PLC Shares Surged originally appeared on Fool.com.Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.