- Xero’s operating revenue for the first half of the year was NZ$1.19 billion, slightly below the estimate of NZ$1.2 billion.
- Revenue from Australia and New Zealand (ANZ) came in at NZ$663.7 million, slightly higher than the projected NZ$660.7 million.
- International revenue reached NZ$530.5 million, which did not meet the estimated NZ$538.7 million.
- Revenue in North America fell short at NZ$71.6 million, compared to the expected NZ$82.4 million.
- The UK saw revenue of NZ$339.0 million, slightly under the projected NZ$341.4 million.
- Xero’s operating expenses totaled NZ$919.9 million.
- Analyst recommendations include 11 buy ratings, 4 hold ratings, and 1 sell rating for Xero.
Xero Ltd on Smartkarma
Analysts on Smartkarma are actively covering Xero Ltd, providing valuable insights for investors. Sumeet Singh from Aequitas Research recently highlighted Xero as part of an ECM Weekly update, discussing IPOs, placements, and other events impacting the market sentiment. Brian Freitas also shared positive views on Xero’s capital raise to acquire Melio Limited, with a fully underwritten A$1.85bn institutional placement attracting significant interest from passive investors. Additionally, Sumeet Singh explored the implications of Xero’s US$1.2bn institutional placement aimed at boosting growth in the US market, although emphasizing it may not be a significant game changer.
Furthermore, FNArena offered a brief overview of Xero Ltd‘s upcoming important company events and economic data releases, adding to the comprehensive analyst coverage on Smartkarma. Investors can leverage these diverse perspectives to make informed decisions regarding Xero’s stock performance and strategic initiatives in the dynamic financial landscape.
A look at Xero Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Xero Ltd shows a promising long-term outlook. With a strong score of 5 for Growth, the company is expected to experience substantial expansion opportunities in the future. Additionally, Xero Ltd demonstrates solid Resilience with a score of 4, indicating its ability to withstand market challenges and maintain stability. The company’s Momentum score of 3 suggests a steady upward trend in performance. However, Xero Ltd lags behind in Dividend with a score of 1, reflecting lower returns for investors in terms of dividends. The Value score of 2 implies that the company may be trading at a reasonable valuation relative to its earnings and growth prospects.
Xero Limited, an online accounting system provider, offers a range of software tools including bank transaction importing, invoicing, financial reporting, and expense claim management. The company’s Smartkarma Smart Scores point towards a predominantly positive outlook, especially in terms of anticipated growth and resilience. Investors may find Xero Ltd appealing for its potential for expansion and ability to navigate market challenges effectively. While the company scores lower in dividend yield and value metrics, its strong focus on growth and resilience positions it well for long-term success in the online accounting industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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