Alliance Creative Group Inc (OTCMKTS:ACGX) Could Continue to Soar After Growing Q1 2017 Revenues By 92%

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Alliance Creative Group Inc (OTCMKTS:ACGX) share doubled in a one-week period, and the stock was up over 450% in a one-year period recently. Now, some may think this stock is due for a pullback. However, the company recently had positive catalysts, which could cause ACGX to run higher. Before we look into those catalysts, let’s take a look at what the company does, first.

 

Alliance Creative Group Inc is a full-service product-development agency has been helping clients connect their products and services to their customers, since 1997. Alliance Creative Group focuses primarily on creative and design services, printing and packaging, brand and product development, fulfillment, logistics and transportation, strategic consulting, digital marketing and engagement, and software development.

 

Let’s get into the recent developments in the company. Alliance Creative Group Inc (OTCMKTS:ACGX) recently reported its financial results for the first quarter of the 2017 fiscal year. For the period ended on March 31, 2017, Alliance Creative Group Inc reported revenue of $5.11M, compared to $2.67M in the same period in the prior fiscal year. That in mind, the company’s revenues grew by 92%, year over year. Additionally, the company reported gross profits for Q1 2017 of $1.88M, which was a 196%, or $1.25M, increase from its gross profits of $634.67K in the first quarter of the 2016 fiscal year. In turn, this caused its net income to grow significantly year over year. Prior to the company’s quarterly earnings release, the company was operating at a loss in the same quarter in the prior fiscal year. However, Alliance Creative Group reported net income of $392.66K for Q1 2017, compared to a net loss of $51K for the first quarter of the 2016 fiscal year, which was an increase of $443.83K year over year.

 

According to Alliance Creative Group Chief Executive Officer, Steven St. Louis, “Our core business has been around almost 20 years, or about 80 quarters, and this quarter represents our all-time high in revenue and profits.  We are very proud of our team but we also very excited about the opportunities ahead of us.”

 

Alliance Creative Group Inc COO and General Counsel Paul Sorkin stated, “This Quarter represents a significant milestone in the execution of our business plans but also represents a new floor to leverage and build from.  The speed of growth should accelerate after a foundational infrastructure is set so we believe this year and 2018 will be crucial years for us to maximize our opportunities to grow the overall company, reduce our debt, and create additional future opportunities for our investors and employees while increasing shareholder value.”

 

Prior to this, the company provide investors with some guidance and noted that its revenues would exceed $5M for the first quarter of 2017, and it, in fact, happened.  Alliance Creative Group also announced that it expects increased 2017 estimate projections for 2017 by approximately 50% to $18M.

Sorkin stated, “Our team has put in a lot of time, effort, and money to create a solid foundation to build off of these last few years. We continue to make a lot of positive progress and have been able to see the benefits of our hard work these last few months. I am very proud of the sacrifices everyone has made to get us to this point and believe we have some very positive days ahead of us.”

 

Alliance Creative Group COO concluded, “We understand that with all opportunities come additional challenges and we are prepared to handle the issues that come with growth. Our business model has been built on a shared resources concept to provide us with the necessary support as we add more customers, vendors and employees. We are projecting a 50% increase in revenues for 2017 compared to 2016 and if we are able to execute our business plans we hope to continue an accelerated growth rate in 2018 and beyond. We will also continue looking for new ways to create long-term value for our shareholders, investors, and employees and will update the public as things progress.”

 

That said, you might want to keep an eye on any clues the company might provide ahead of its next earnings release. Rather than sitting in front of the computer screen all day to stay up to date on ACGX, all you need to do is simply enter your email address into the box below. It’s that simple. After you’ve done so, you’ll be subscribed to our free newsletter, and then we could send updates, if any, on ACGX.

 

Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in ACGX stock, short or long.

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