Mustek rises on earnings update - TechCentral

Mustek rises on earnings update

Shares in Mustek rose more than 4% on the JSE on Tuesday morning after the ICT supplier said headline earnings per share will fall by between 20% and 30% for the six months ended 31 December 2016, compared to the same period a year ago.

The company warned shareholders that the Heps line is likely to be between 36,17c and 41,33c, compared to 51,67c a year ago.

Earnings per share will also fall by between 20% and 30%, Mustek said. Despite the slide in earnings, the company’s share price was last quoted up 4% over Monday’s close at R4,65. (Update: Mustek’s share price closed down 0,5% at R4,45 at the close.)

Mustek said net asset value per share is expected to rise to between R10,65 and R10,70, compared to R9,83 a year ago.

“Cash generated from operations is expected to improve by between R420m and R430m, compared to the cash used in operations of R418,7m reported for the previous corresponding period,” it said.

“The improvement is largely due to a reduction in inventory of between R260m and R270m compared to the previous corresponding period.”

Mustek, well known for its Mecer brand of computers, assembles and distributes PCs and related IT products from international companies such as Toshiba, Huawei, Acer, Lenovo, Asus, Samsung, Brother and Epson.

Its share price has declined by 34% in the past 12 months.  — (c) 2017 NewsCentral Media

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