Why the Straker Translations (ASX:STG) share price is rocketing today

Straker Translations now expects revenue to exceed $50 million in FY22, sending the share price higher today.
The post Why the Straker Translations (ASX:STG) share price is rocketing today appeared first on The Motley Fool Australia. –

The Straker Translations Ltd (ASX: STG) share price is putting a smile on the faces of shareholders today. Shares are surging off the back of the language services company’s outlook update.

At the time of writing, the Straker Translations’ shares are up 10.83% to $2.00.

A ‘transformational’ year

Investors are scrambling to get a hold of Straker Translations shares this morning following the company’s update. In the release, the company points to a strong outlook for the 2022 financial year. This is thanks to its leadership in the consolidating global language services sector.

Straker also touched on its performance highlights for FY21, these included:

Revenue increase of 13% to $31.3 million for year ending March 2021
On a proforma basis, unaudited revenue tops $41 million for FY21
Lingotek acquisition delivers $1.9 million in revenue within two months of integration.
Net losses after tax increase to $6 million from $2.5 million.

These results were previously published in April. However, now they are audited and official.

The big-ticket item for Straker is its appointment as strategic translations provider to IBM (NYSE: IBM).

Additionally, the acquisition of US-based Lingotek has also been described as ‘transformational’ for the company. The deal has added $11 million in annual incremental revenue for Straker.

Positive outlook lifts Straker Translations share price

Notably, Straker advised it forecasts revenue for 2022 financial year to exceed $50 million with an improved gross margin.

The company reasons there is a growing recognition among enterprise customers of Straker’s global reach and the benefits of its RAY translation platform. Furthermore, the inclusion of Lingotek pushes the company’s proforma revenue to $41.2 million – representing a 48% increase on the prior year.

Commenting on the update, Chief Executive and Co-Founder Grant Straker said:

Our strategic priorities are clear. We are focused on driving consolidation in the translation sector, building repeating revenues – particularly among the large global enterprises that benefit from Straker’s global reach and our Ai-Powered RAY translation platform – and continuing to consolidate our technological leadership.

While the company suffered challenges from COVID-19, it believes it is also creating opportunities. Considering the deferral or cancellation of work has weighed more so on smaller translation companies, this has put more pressure on the consolidation of the industry.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

More reading

Here’s why the Archer (ASX:AXE) share price is soaring 6% today
The Straker (ASX:STG) share price is rocketing 13% today

The post Why the Straker Translations (ASX:STG) share price is rocketing today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!