The market last week was bombarded with Q3 2021 earnings of listed companies on the Nigerian Exchange. To a large extent, the results released so far were quite impressive. Quite a number of companies reported growth in their top line and bottom line figures. Some companies also left their loss positions to positive positions. The market will surely reward stocks with sterling performance which would obviously drive their share price upward. At we are bound to see positive vibrations in the market as a result of the quality of results released to the market.
Commenting on the Q3 results released to the market, the MD/CEO of Global View Capital Limited, Aruna Kebira, stated thus:
“Q3 results released to the market were fantastic. In fact about 90% of the results released improved. Most of the companies are leaving loss positions to profit position. Total moved from N500 million to N13 billion. Okomu and Presco’s result were fantastic. Generally Q3 results beat the market expectation. We are going to see a better market in November. A lot of them dropped their results on Friday, 29th of October and market as already closed; by Monday the market will respond positively to those results.
Guinness has already gained 20% between Thursday and Friday occasioned by its fantastic Q1 results for the period ended 30 September 2021. The Company moved from a loss position to profit position.
Transcorp also moved from a loss position to profit position, though it has not yet been compensated by the market; chances are because of the volume that is actually available in the market.
By the time these results are analysed and actions are taken on these results, it will drive up prices of stocks. A number of stocks will break their 52 weeks high because of their performance. For Instance, Guinness has reached a new 52 weeks high; Okomu has set a new 52 high of N135”.
ACCESS BANK
Access Bank achieved year on year growth in its top line and bottom line figures for the nine months period ended 30 September 2021.
The financial giant achieved Gross Earnings of N693.373 billion for the nine period, up by 16.97% from N592.787 billion achieved the previous year.
Profit after tax grew year on year by 19.15% to N121.89 billion from N102.3 billion reported in Q3 2020. Access Bank achieved a profit margin of 17.58% for the nine months period.
Earnings per share of the Bank for the nine months period grew to N3.43 from the EPS of N2.88 achieved in Q3 2021.
At the share price of N9.50, the P.E ratio of Access Bank stands 2.77x with earnings yield of 36.10%.
ZENITH BANK
Zenith Bank achieved marginal growth in its Q3 result for both top line and bottom line figures.
Gross Earnings of N518.673 billion was reported for the nine months period, up by 1.91% from N508.975 billion reported in Q3 2020.
Profit after tax grew marginally by 0.80% N160.594 billion from N159.315 billion reported the previous year. Zenith Bank achieved a profit margin of 30.96% for the nine months period.
Earnings per share increased marginally to N5.12 from the EPS of N5.07 reported in Q3 2021.
At the share price of N25.25, the PE ratio of Zenith Bank stands at 4.94x with earnings yield of 20.26%.
UBA
United Bank for Africa reported a fantastic Q3 results with growth in its top line and bottom line figures.
Gross Earnings of N489.192 billion was achieved for the nine months period, up by 7.83% from N453.673 billion recorded the previous year.
Profit after tax grew year on year by 35.61% to N104.597 billion from N77.132 billion reported in Q3 2021. UBA achieved a profit margin of 21.38%.
Earnings per share for the period under review stands at N3.06, up by 35.61% from the EPS of N2.26 achieved the previous year.
At the share price of N8.60, the PE ratio of UBA stands at 2.81x with earnings yield of 35.56%.
GTCO
The third quarter report of Guaranty Trust Holdings Company shows decline in the Group’s top line and bottom line figures.
Gross Earnings of N318.508 billion was reported for the nine months period, down by 3.47% from N329.954 billion reported the previous year.
The Holding Company reported a profit after tax of N129.401%, down by 9.05% from N142.283 billion reported in Q3 2020. Profit margin of GTCO for the period under review stands at 40.63%.
Earnings per share dropped to N4.40 from the EPS of N4.83, which translates to 9.05% decline year on year.
At the share price of N28.65, the PE ratio of GTCO stands at 6.52x with earnings yield of 15.35%.
WEMA BANK
Wema Bank in Q3 2021 achieved year on year growth in its top line and bottom line figures.
Gross Earnings of N63.077 billion was reported for the nine months period, up by 9.08% from N57.825 billion reported the previous year.
Profit after grew significantly by 135.77% to N6.235 billion from N2.645 billion reported in Q3 2020.
Earnings per share increased year on year by 135.77% to 16 kobo from the EPS of 7 kobo.
At the share price of 81 kobo, the PE ratio of Wema Bank stands at 5.01x with earnings yield of 19.96%.
PRESCO
The third quarter result Presco was impressive with significant growth in its top line and bottom line figures. The company also declared an interim dividend of N1 for the period ended 30 September 2021.
A turnover of N34.237 billion was reported for the period under review, up by 80.94% from N18.922 billion reported the previous year.
Profit after tax grew by 173.84% to N13.775 billion from 5.030 billion reported the previous year. Presco achieved a profit margin of 40.24% for the period under review.
Earnings per share increased to N13.78 from the EPS of N5.03, which implies 173.84% growth year on year.
At the share price of N89, the PE ratio of Presco stands at 6.46x with earnings yield of 15.48%.
OKOMU OIL
Okomu oil achieved a sterling performance in its Q3 2021 result as it recorded significant growth in its turnover and profit after tax.
A turnover of N31.046 billion was reported for the nine months period, up by 66.73% from N18.62 billion reported the previous year.
Profit after tax grew by 132.14% to N11.604 billion from N4.999 billion reported in Q3 2021. Okomu achieved a profit margin of 37.38% for the nine months period.
Earnings per share of the company increased year on year by 132.14% to N12.16 from the EPS of N5.24 reported in Q3 2020.
At the share price of N135, the PE ratio of Okomu Oil stands at 11.10x with earnings yield of 9.01%.
FIDSON HEALTHCARE
Fidson Healthcare published a fantastic Q3 results with significant growth in its turnover and profit after tax.
A turnover of N21.753 billion was reported for the nine months period, up by 59.39% from N13.647 billion reported in Q3 2020.
Profit after tax grew by 138.09% to N2.235 billion from N976 million reported the previous year.
Earnings per share of the company grew by 138.09% to N1.11 from the EPS of 47 kobo achieved the previous year.
At the share price of N6.15, the PE ratio of Fidson Healthcare stands at 5.52x with earnings yield of 18.12%.
MAY & BAKER
The third quarter result of May & Baker was impressive as turnover and profit after tax grew year on year.
A turnover of N 8.064 billion was reported for the nine months period, up by 25.26% from N6.438 reported the previous year.
Profit after tax of the company grew by 29.44% to N882 million from N682 million reported the previous year.
Earnings per share increased to 51 kobo from the EPS of 40 kobo reported in Q3 2020.
At the share price of N4.36, the PE ratio of May & Baker stands 8.52x with earnings yield of 11.73%.
LAFARGE AFRICA (WAPCO)
Lafarge Africa Plc (WAPCO) declared an interim dividend of N1 to its shareholders for the period ended 30 September 2021.
The Cement manufacturer achieved year on year growth in its top line and bottom line figures for the period under review.
A turnover of N219.198 billion was reported for the nine months period, up by 21.86% from N179.877 billion reported the previous year.
Profit after tax grew year on year by 43.26% to N40.395 billion from N28.196 billion declared in Q3 2020.
Earnings per share of the group increased to N2.51 from the EPS of N1.75 declared in Q3 2020.
At the share price of N27, the PE. Ratio of Lafarge Africa stands at 10.76x with earnings yield of 9.29%.
DANGOTE CEMENT
The cement manufacturing giant reported year on year growth in its top line and bottom line figures.
Dangote Cement increased its market share by 34.24% with a turnover of N1.022 trillion from N761.444 billion.
Profit after tax for the nine period was up by 33.33% to N278.25 billion from N208.685 reported the previous year.
Earnings per share of the Group stands at N16.33, up by 33.33% from N12.25 billon reported the previous year.
At the share price of N280, the PE ratio of Dangote Cement stands at 17.15x with earnings yield 5.83%.
BUA CEMENT
BUA Cement achieved significant growth in its turnover and profit after tax for the nine months period ended, 30 September 2021.
A turnover of N186.905 billion was reported for the period under review, up by 19.39% from N156.550 billion reported the previous year.
Profit after tax increased by 23.22% to N65.906 billion from N53.408 billion reported in Q3 2020.
Earnings per share of the group improved significantly by 23.22%, year on year to N1.95 from the EPS of 1.58.
At the share price of N72, the PE ratio of BUA Cement stands at 37x with earnings yield of 2.70%