Shares in online contracts for difference company Plus500 (PLUS:AIM) gained 4% to £13.76 on Tuesday after the company said trading remains strong and is tracking ahead of the fourth quarter of 2020.
Ahead of an extraordinary general meeting today, Plus500 said it was continuing to see outperformance of revenues generated from spreads and overnight charges (customer income) as well as across key operating metrics.
The company said the recent shift in markets was supporting the ongoing momentum in the business, albeit with volatile monthly trading results.
Underlying growth in active customers and on-going success in attracting and retaining new customers is expected to drive 2021 revenues.
Analysts remain sceptical that Plus500 can maintain revenues at similar levels to last year’s outcome of $872.5 million as shown by the consensus expectation of $458 million, according to data provider Refinitiv
EARNINGS UPGRADE
Analysts at Liberum upgraded their 2021 earnings per share estimate today by 5% to $2 whilst also acknowledging ‘the potential for further increases should the current environment persist, with Plus500 continuing to potentially capitalise on this’.
