Appen (ASX: APX) rising against the tide
Stock
Appen (ASX: APX) $12.50 as at 15/11/2018
Event
In a day where much of the market is heading lower, one stock stands out with Appen jumping this afternoon, currently trading over up 11% on the day.
The machine learning business today revised 2018 guidance higher just 6 weeks before the year end.
The new guidance range of $62m-$65m is about 12% higher than previous guidance, and a nice ~6% higher than consensus estimates to the midpoint.
The company suggested that the driver of earnings was an increase in orders “from existing projects.”
The company also noted that earnings can be derived from currency fluctuations with the new estimates based on a realised AUD/USD price of $0.80, well above the current spot price of $0.73.
At the half year result, Appen noted that “almost all revenue is derived offshore, most in USD.’ Hence a lower AUD is a benefit to them.
Appen (ASX: APX) Chart
Market Matters Take/Outlook
