By Alice Uribe
SYDNEY–Australian buy-now-pay-later provider Zip Co.’s shares rose after saying it expected to generate positive cash earnings for fiscal 2024.
Zip’s shares rose 13% to 34 Australian cents (22 U.S. cents) on Tuesday, after earlier hitting a high of 36 Australian cents.
The company said Tuesday that it generated positive cash earnings for its fiscal first quarter and now expects to do the same for the whole of the fiscal year ending June 2024.
Growth in U.S. volumes, margin expansion and cost discipline were among the reasons for its improved outlook, Zip said. It had previously expected to achieve positive cash earnings during the December half.
RBC Capital Markets analyst Wei-Weng Chen viewed the company’s expanding revenue margin in Australia and New Zealand as a highlight of the first-quarter results.
Zip’s stock peaked at A$14.53 in 2021, and is down 33% for the year.
Write to Alice Uribe at [email protected]
Read the full article here
