• Tuesday, April 23, 2024
businessday logo


Earnings show investors get good deals in some stocks


As the ‘early birds’ release their full year 2012 financials at the Nigerian Stock Exchange (NSE), the earnings-per-share (EPS) level of most stocks are clear indication that investors had good deals for holding the stocks.

For equity investors, earnings-per-share that serves as an indicator of a company’s profitability is generally considered to be the single most important variable in determining a share’s price.

With market corrections on sight in the short run, not a few analysts have advocated the need for investors to boost their equity portfolio by buying stocks with good fundamental as well as strong record of corporate actions.

With the expectation of more results this week, some companies whose earnings-per-share are impressive according to the year-end 2012 financial include Julius Berger Nigeria plc, Courtevill Business Solutions plc, Lafarge Cement WAPCO Nigeria plc, Forte Oil plc, Nigerian Breweries plc, International Breweries plc, and Nestle Nigeria plc.

For investors in Julius Berger Nigeria, their company’s basic earnings-per-share rose to 683 kobo from 368 kobo in 2011. The company reported N201.565 billion in revenue against the preceding year’s N169.413 billion, while its profit for the year rose to N8.012 billion against N4.411 billion in 2011. The company has proposed dividend payment of N2.50. The share price of Julius Berger stood at N63, at the close of trading last week.

For Courtevill Business Solutions, which closed last week at N0.50, earned N1.060 billion last year against N855.600 million in 2011; its profit for the year rose to N298.321 million against N245.352 million, while basic earnings-per-share stood at 10.08 kobo against the preceding year’s 8.25 kobo.

Investors in Lafarge Cement WAPCO Nigeria also got fair deal for their decisions not to sell the stock, as the company’s basic/diluted earnings-per-share rose to 490 kobo from 288 kobo in 2011.

The company’s revenue was high at N87.965 billion against the preceding year’s N62.502 billion, while profit after tax attributable to owners of the company rose to N14.711 billion against N8.639 billion in 2011. The company has also proposed 120 kobo dividend for payment to its shareholders. Its share price stood at N76 last week.

Also, the basic earnings-per-share of Nestle Nigeria rose to N26.67 from N20.81, indicating 28 percent increase. The company’s proposed dividend payment to investors is N18.50 kobo against N11.05 kobo, showing 67 percent. Its share price closed high at N950 last week. Nestle Nigeria recorded revenue rise to N116.707 billion against N97.961 billion in 2011, indicating 19 percent rise, while its profit after tax stood at N21.137 billion against N16.496 billion in 2011, indicating 28 percent rise.

For investors in Forte Oil, the company’s basic earnings-per-share has risen to N0.87 kobo from a negative level of N19.97 kobo in 2011. Forte Oil, which its share price close at N13.65 kobo last week recorded a revenue of N90.984 billion against N116.999 billion in 2011; its profit for the year rose to N1.007 billion from N19.536 billion loss in 2011.

Nigerian Breweries has proposed to pay its shareholders a total of N22.688 billion to its shareholders following the record N38.062 billion profit after tax attributable to owners of the company against N38.023 billion in 2011. Its basis earnings-per-share stood at 503 kobo, same as in 2011. The share price of Nigerian Breweries close at N163.20 kobo after last week’s trading.

For its counterpart –International Breweries, which its share price closed at N21.20 kobo at the end of trading last week, its earnings-per-share evidenced in 2012 financial rose to 91 kobo from 7 kobo at the end of 2011. The company’s revenue stood at N13.269 billion against N9.908 billion in 2011, while its net profit for the year rose to N2.056 billion against N147.347 million in 2011.