Wirecard: Growth Continues At An Impressive Pace

May 09, 2019 10:02 AM ETWirecard AG (WCAGY), WRCDF2 Comments
Güner Soysal profile picture
Güner Soysal


  • Wirecard published its quarterly figures for the first quarter of fiscal year 2019 on May 8.
  • Wirecard continues its growth path - unrestrained by the latest allegations - with an impressive pace.
  • While still having an attractive valuation, the newly-closed partnerships could further accelerate growth and, consequently, shareholder value.

You can lead a horse to water, but you can't make it drink.

A short review

Most recently, on April 29, 2019, I published an article about Wirecard (OTC:WRCDF, OTCPK:WCAGY) on Seeking Alpha with the title "A Gift Served On A Silver Platter?"

In the aforementioned article, I elaborated why Wirecard is a "Conviction Buy", from my point of view, by presenting my fair value calculations. I added that,

"the current stock price could be a good starting point for short and long-term oriented investors". In this context, I also presented the traceability of Wirecard's "Vision 2025".

Second, I mentioned that,

"from a qualitative point of view, Wirecard has a visionary management, great growth prospects, solid fundamentals and is potentially cooperating with SoftBank (OTCPK:SFTBF, OTCPK:SFTBY), which could open up additional markets and enable synergy effects with SoftBank's global and innovative investment portfolio."

Third, I wrote that,

"Wirecard will release its quarterly figures for Q1 2019 on May 8. The CEO has already announced in the earnings call that the first quarter was strong. This could also have a positive effect on the stock price. In this context, it is also worth mentioning that Wirecard raised its guidance three times last year. This year could also bring some positive surprises."

In this article, I will discuss the results for the first quarter of fiscal year 2019 and management's statements in the respective earnings call.

Furthermore, I will discuss some of the latest developments that could be relevant for future stock price performance and, consequently, shareholder value.

Results for Q1 2019

While market participants were afraid that growth might have suffered as a result of the latest allegations, management countered with again impressive results to the doubters.

Wirecard increased its revenue by 34.8% to €566.7 million (Q1 2018: €420.5 million). The transaction volume processed through the Wirecard

This article was written by

Güner Soysal profile picture
Real Financial Dynamics - Investing In Growth In Every Market Phase. Banker, Investor, Investment Advisor, Wealth Manager, Finance Blogger from Germany. Website | Instagram | LinkedIn | Güner Soysal

Disclosure: I am/we are long WRCDF, WCAGY, FB. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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