One of this morning’s top earnings movers is TOP Financial Group (NASDAQ:TOP) stock. The Hong Kong-based digital brokerage firm recently reported financial results for the fiscal year ending March 31, 2023. The results were generally positive.
TOP’s total revenues reached $9.7 million, an increase of 24% from the previous year. This was due primarily to trading solution services fees, which increased by $1.1 million, and interest income. Other revenue drivers included futures brokerage commissions, which increased 0.58% to $4.29 million.
TOP stock is rising today as the market reacts well to TOP’s financial progress. After a complicated start to the year, this could be the type of turnaround that investors want to see.
Does this mean that this meme stock might actually demonstrate some sustainable growth in the coming year? Let’s take a closer look at what investors should be expecting.
What’s Happening With TOP Stock
Since the company released its financial results, TOP stock has been rising. However, it has lost some of its previous momentum. As of this writing, it is up almost 30% for the day. However, TOP is still an unstable company with a checkered past, even after reporting some impressive revenue increases.
While it surged to record prices in April 2023 that turned many heads, Hindenburg Research flagged it as a classic pump-and-dump scheme. Shortly thereafter, the Securities and Exchange Commission (SEC) imposed a trading halt.
That said, TOP’s leadership seems optimistic as the company continues its focus on growth. CFO Yung Yung Lo states:
“Our net income decreased by 2.7% to US$3.4 million in the year ended March 31, 2023, which was mainly driven by the increase in professional fees was primarily incurred for the IPO audit fees and expense of legal and consulting expenses incurred after IPO. The capital raised through our recent IPO enhanced our capital base and provided us with ample ammunition to continue to develop our product and service. All in all, we are well positioned to implement our growth strategy in the quarters to come.”
Given the company’s questionable history, it may be hard for some investors to have much faith in it. However, for the ones that still do, the recent fiscal results will likely be reassuring as TOP stock continues to trend upward on the momentum.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.