What happened
Opera (OPRA 0.53%) stock is posting big gains Thursday. The digital platform specialist's share price was up roughly 12.2% in the day's trading session as of 1 p.m. ET, according to data from S&P Global Market Intelligence.
After market close yesterday, Opera published a press release announcing the initiation of a dividend program. The dividend is set to be paid semiannually, with the first payment of $0.40 per American depositary share set to be paid on July 12.
So what
Investors who own Opera stock at market close on June 30 will receive a dividend of $0.40 per share next month. Based on the press release's guidance for a semiannual payout, this suggests an annual dividend of $0.80 per share and a forward yield of roughly 3.8%.
On the other hand, the press release also said that the frequency and amounts of future dividends will depend on the company's earnings, capital requirements, and other factors, so it's possible that there will be significant variability going forward.
Now what
Opera stock has skyrocketed roughly 235% year to date thanks to strong sales and earnings growth and excitement about the company's browser, gaming, Web3, and AI initiatives. Following the impressive rally, the company now trades at roughly 29 times this year's expected earnings and 4.9 times expected sales.
OPRA PS Ratio (Forward) data by YCharts
For the second quarter, Opera is guiding for sales to come in between $92 million and $94 million, representing growth of roughly 19% year over year at the midpoint of the target. Non-GAAP (generally accepted accounting principles) adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is projected to be between $18 million and $20 million.
For the full-year period, the company expects sales to be between $373 million and $390 million -- suggesting growth of roughly 13.7% at the midpoint. Meanwhile, adjusted EBITDA is projected to be between $77 million and $83 million.
