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Re: Enterprising Investor post# 1019

Saturday, 08/27/2016 7:29:55 AM

Saturday, August 27, 2016 7:29:55 AM

Post# of 2611
Trending: USA Technologies Inc. Revenue Is Exploding Higher

To see the charts, click on the link.

http://news.cmlviz.com/2016/08/26/trending-usa-technologies-inc-revenue-is-exploding-higher.html

Date Published: 2016-08-26

PREFACE

USA Technologies Inc. (NASDAQ:USAT) revenue over a trailing-twelve-month period is trending higher which means it is increasing for at least four consecutive quarters. In the revenue time series chart below, we can see the data.

The bars plot the exploding revenue for USA Technologies Inc.. We define 'exploding' as a revenue trend that shows at least 30% growth over the last year and at least 75% growth over the last two-years. USAT revenue meets both of those requirements. Feel free to hover over the chart to see the actual values for USA Technologies Inc..

USA Technologies Inc. (NASDAQ:USAT) has shown a 41.58% year-over-year revenue change and 79.09% two-year change. When a company grows revenue this quickly, shows positive two-year revenue growth and is trending consecutively higher, top line growth may supersede earnings and free cash flow in the short to intermediate term. If revenue stays trending, USA Technologies Inc. could find net income and cash from operations growing rapidly in the near future.

While revenue for USA Technologies Inc. (NASDAQ:USAT) is trending higher, we note that net income is still negative over the last year. All things are forgiven when revenue stays trending higher, but there is serious risk to the stock price for USAT if the revenue trend hits a wall while earnings stays negative. We do note the criticality of cash from operations, which is in fact positive for USA Technologies Inc. (NASDAQ:USAT) even with negative earnings.