Todays small-cap winner isPlus500(LSE: PLUS), which has seen its shares jump this morning after the company unveiled a better than expected set of third-quarter results.
In particular, during the third quarter Plus500s revenue jumped 23.5% to $56.2m, compared to the second quarter. For the first nine months of the year, the companys revenues totalled $162.4m, 151% higher than the figure reported a year ago. The company also reported that its customer base had grown by 17% year on year. The groups useracquisition costs remained flatat$1,005 per client, while the average revenue per userjumpedby 10% to $1,290.
A surprise for some
Along with todays trading update, Plus500s management stated that it is confident that the company will exceed City expectations for full-year profitability.
However, for some this will come as a surprise, as Plus500has been criticised for its high growth rate, which seems impossible to sustain. Indeed, some believe that the company is in fact a scam, although there is no proof to back up theseclaims.
With Plus500 on target to beat City expectations, the company is likely to offer investors a hefty dividend payout next year. The City already expects Plus500 to support a dividend yield of 6.7%, followed by a payout of 7.3% the year after.
Additionally, at present levels and according to current forecasts, Plus500 currently trades at a forward P/E of 10.3. Its likely that after todays results City analysts will revise full-year earnings forecasts higher, which will put Plus 500 on an even more attractive earnings multiple.
Falling out of favour
As Plus500 impresses, investors are turning their back onPremier Foods(LSE: PFD).
Premier Foods is slated to report its third-quarter results on Thursday but investors are already expressing their concern. Indeed, as supermarkets go to war over prices, suppliers like Premier Foods are finding it hard to avoid the squeeze and this is likely to be reflected within results.
Premier reported a 6.3% decline in second-quarter revenues and analysts are a expecting a further 3% to 4% decline in revenue during the third quarter. This improved performance is expected afterfavourable weather in August and September, as well as a number of product launches backed up by additional advertising.
Unfortunately, falling sales are the least of Premiers worries. After the company completed a radical restructuring earlier this year, raising 353m, refinancing debt and restructuring its product offering, Premier has failed to turn things around. Since the March refinancing, Premiers shares have collapsed by more than 50% as investors fret about the companys trading.
Ahead of Thursdays results Premiers shares have fallen by as much as 10% today.
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Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.