Here's why the Atomos (ASX:AMS) share price is surging 15% today

The company's sales are on the move again following the COVID-19 hiatus

| More on:
A man in a blue collared shirt sits at his desk doing a single fist pump as he watches the Appen share price rise on his laptop

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Atomos Ltd (ASX: AMS) share price is heading north this morning after the company announced a positive sales update.

At the time of writing, the video technology company's shares are up 14.8% to $1.13.

Atomos continues to achieve record sales growth

The Atomos share price is rising after the company revealed it has performed better than its previous sales guidance.

According to its release, Atomos has delivered $40.9 million in unaudited sales for the first-half of FY22. The result was slightly above the previous guidance of $40 million for the 6 months ending 31 December 2021.

In contrast, $32.8 million was achieved the prior period (H1 FY21), a 25% improvement. Although, the first-half of last year's financial result was heavily impacted by global COVID-19 lockdowns which affected trading conditions.

Pleasingly, the current sales performance surpasses the company's half-year record reported in the prior corresponding period.

Atomos noted it has successfully navigated through H1 FY22 with minimal disruption to its core products, Ninja V and Ninja V+. While there were some stock outages of products experienced in the first half, this is expected to be less significant in H2 FY22.

What did management say?

Commenting on the result pushing up the Atomos share price today, CEO Estelle McGechie said:

I'm very pleased with the 25% growth in 1H'22 sales over the prior year period given the significant disruption to supply chains for many companies across the world. Our team has worked very hard to navigate these issues and our continued growth is a testament to that. We see our sales only further accelerating in the second half of FY22 and are able to reconfirm our full year sales guidance of $95m+.

Furthermore, our cost measures and governance are robust enabling a reconfirmation of our full year EBITDA [earnings before interest, taxes, depreciation, and amortisation] margin in excess of 12% for the underlying Atomos business. This does not include approximately $1m of opex [operating expense] costs which we expect to incur from our recent investment in Videogram.

Atomos share price snapshot

The Atomos share price travelled higher in the later part of 2021, before hitting the brakes and moving in reverse.

Over the past 12 months, the company's shares have gained around 4% for investors, factoring in today's rise.

Based on the current share price, Atomos commands a market capitalisation of $245.70 million, with approximately 222.35 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Atomos Ltd. The Motley Fool Australia has recommended Atomos Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

group of traders cheering at stock market
Technology Shares

Codan shares near an all time high. Can they go higher?

Is there more room for growth for this ASX 200 company? 

Read more »

Kid putting a coin in a piggy bank.
Technology Shares

Why I think this ASX small-cap stock is a bargain at $4.41

This tech business has a lot going for it.

Read more »

The last piece of the jigsaw being fitted, indicating good news for a share price on merger or acquisition
Mergers & Acquisitions

WiseTech share price storms higher on $3.25b blockbuster acquisition

What is the company spending billions on? Let's find out.

Read more »

A businessman stacks building blocks.
Technology Shares

6% gain! What's up with Block shares today?

Block shares are up more than 34% since 2 May.

Read more »

Happy work colleagues give each other a fist pump.
Technology Shares

Guess which ASX 200 technology stock has outperformed Nvidia over the past 5 years?

This company has been nothing short of impressive.

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Technology Shares

After surging 13% yesterday, are TechnologyOne shares a buy, hold or sell according to Macquarie?

Valuations matter when investing, and Macquarie feels no different.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Technology Shares

Why Goldman Sachs rates this ASX tech share as a top buy

Let's see why the broker rates this stock highly right now.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Technology Shares

WiseTech shares have surged 34% since April. Is it too late to buy?

Can WiseTech shares keep charging higher? Here’s what this investing expert expects.

Read more »