Mustek jumps 8% after upping forecast in trading statement
The PC distributor had noted in its previous interim results that despite tough economic conditions, it was expecting net finance costs to decrease
The share price of ICT hardware distributor Mustek jumped as much as 8% on Friday, before gains were pared, after the company said it expected headline earnings per share (HEPS) for the six months to end-December to increase between 50% and 60%.
HEPS for the period were expected to be between 56.01c and 59.74c, while earnings per share were expected to be between 55.86c and 59.58c, the company said in a statement.
Net asset value per share was expected to be between R12.65 and R12.75, or between 18% and 19% higher than over the previous comparative period.
The PC distributor had noted in its previous interim results that despite tough economic conditions, it was expecting net finance costs to decrease.
Lower inventory levels should also have a positive effect on gross profit margins, the company said at the time.
At 9.48am the share price of Mustek was unchanged at R6.10, having earlier reached an intraday best of R6.60. The company’s share price has added 7.02% so far in 2018.