ZOO Digital Group (AIM:ZOO) - when 17% growth isn’t so awesome!
The provider of cloud-based localisation and digital distribution services for the global entertainment industry has seen its share price tumble following what appeared to be a reasonably positive trading update. Unfortunately the rating clearly demanded a lot more....
While the AGM statement pointed to revenue growth in the first of the financial year of at least 17% this wasn’t enough for followers of this highly rated share.
With the shares trading at nearly 60x consensus earnings estimates for the financial year ending March 2020 (yes, that is 2020!), you can start to see why 17% is missing the mark. While the house broker had growth expectations of 18% for the first half,…
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