It certainly has been an eventful earnings season with a number of companies smashing the market's expectations and an equal number failing to deliver on expectations such as Domino's Pizza Enterprises Ltd (ASX: DMP).
Two growth shares that I have been very impressed with this month are listed below. Here's why I think they would be great long term investments:
Altium Limited (ASX: ALU)
I would argue that the Altium half year result has been the highlight of earnings season thus far. The electronic design software company posted half year revenue of US$78 million and a net profit after tax of US$23.4 million. This was a 26% and 58% increase, respectively, on the prior corresponding period. One thing that caught my eye with the company's results release was management's aspirational revenue target of US$500 million by 2025. If the company achieves this and maintains or improves its margins whilst doing so, then I feel its shares will look dirt cheap at current levels. The good news is that due to the quality of its product and its massive market opportunity, I believe the company could achieve this target.
Webjet Limited (ASX: WEB)
I was also very impressed with this online travel agent's performance during the first half of FY 2019. Webjet delivered a 29% increase in total transaction value (TTV) to $1.9 billion, a 33% lift in revenue to $175.3 million, and a 59% jump in net profit after tax to $31.8 million. The key driver of this strong result was the company's WebBeds (B2B) segment. From its continuing operations bookings increased 50%, TTV rose 65%, and EBITDA surged 136% higher to $30.1 million. The good news is that management believes "there are considerable global growth opportunities for WebBeds, particularly in the Asia-Pacific region." I expect this to underpin above-average earnings growth over the next decade.
