M2 announced today higher than expected 2011 forecast.

According to the guidance M2 expects substantial growth since the last financial year.

• Revenue is forecast to grow by 12 per cent in 2010-11 to between $425 million and $445 million from the forecast $380 million to $400 million in 2009-10.
• Net profit is expected to explode 52 per cent to $22 million and $23.5 million in financial 2011 from the 2009-10 guidance figure of about $15 million.
• Earnings per share is forecast to rise 36 per cent to between 18.1 cents and 19.4 cents from the previous year’s guidance of 13.3 to 14.3 cents. Excluding non-cash amortisation of customer contracts, underlying eps is forecasted to up 42% to 20.7-22 cents.

The market still appears to be substantially undervaluing MTU. On underlying eps MTU is trading at a forward P/E of 8.7 which is ludicrously low for a company executing their growth story in such fine fashion.

Disclosure: Long MTU

Related posts:

1. M2 Again – Interview and Guidance Upgrade
2. Vertex Pulls in another $105 million
3. Netflix Q4 Profit Surges 45%
4. American Reprographics (ARP) Q1 2008. I love it when a good plan works out.
5. M2 Telecommunications Delivers Strong Growth and Forecast