Shares in information and communications technology group Datatec dipped by almost 8% on Thursday after the company issued a pre-close statement for the six months ended August.
The group said its trading during the first half of the financial year had been in line with the board’s expectations, with the exception of Logicalis’s United States operations.
A local equities trader said the market had expected to see higher earnings than the 7% projected by the company.
The group said its headline earnings per share for the first half is expected to increase by approximately 7% in relation to the comparative financial period last year.
“Overall, the market was looking for higher earnings after the stock has had such a good run,” said a local trader.
However, the trader said that he didn’t think the disappointing performance in the US division Logicalis had anything to do with the dip.
Earlier, Datatec chief executive Jens Montanana said performances corresponded with management’s expectations.
“Our first-half performance remained in line with the board and management’s expectations, except for the Logicalis US operations — which went through a bump as a consequence of the market softening in the US,” he said.
He added that due to the slowdown in the US, the company did not have organic growth and the business went sideways.
Datatec “remained confident” of strong performances, expecting group revenues for the six months to August to rise by 26% to approximately $1,9-billion, while earnings before interest, tax, depreciation and amortisation is expected to be approximately $60-million.
It will release interim results on October 25.
At 2.09pm on the JSE, Datatec’s share price was R37,15, down 7,82%, or R3,15, from previous close. — I-Net Bridge