• Market regains momentum on Q1 earnings release

Currently we are in the earnings season and Q1 results of quoted companies are beginning to trickle into the market. Earnings announcement are not just statutory duty of quoted firms, they are also of great importance to investors.

Earnings have an effect on the share price, which will move up or down depending on the company’s performance.

As analysts use earnings to measure performance of companies and project future direction of the market, individual investors also likewise use earnings to project future direction of the market. However, these projections and expectations can rapidly adjust up or down based on the quality of results released to the market.

The First Quarter results of quoted firms released so far have been impressive and it triggered positive vibration in the market last week as it gained for 5 consecutive days, returning 1.27% WtD. Year to date, the market has returned -2.41%, which is an improvement from the negative return of 3.63% the previous week.

So far, the market has received Q1 results of UBA, Guaranty Trust Bank, Unilever, Africa Prudential Nigerian Breweries, Stanbic IBTC, NASCON Allied Industries and Transcorp. Other results are expected to hit the market in the coming weeks.

These are the few results released so far:

AFRICA PRUDENTIAL

The only Registrar listed on the floor of the Nigerian Exchange grew its topline and bottom line figures for the first quarter of 2021 when compared to the previous achievement in the corresponding period in 2020.

The Gross Earnings of the firm grew by 11.07% to N825.63 million from N743.37 million reported in Q1 2020.

Profit after tax increased by 11.57% to N381.35 million from the profit after tax of N341.81 million achieved in the first quarter of 2021. Earnings per share (EPS) of AFRIPRUD for the period under review increased to 19 kobo from the EPS of 17 kobo reported in Q1 2020. At the share price of N5.3, the P.E ratio of Africa Prudential stands at 27.8x with earnings yield of 3.6%.

NIGERIAN BREWERIES PLC

Nigerian Breweries grew its top line and bottom line figures in the first quarter of 2021

The Group reported a turnover of N105.676 billion, up by 26.98% from N88.226 billion reported in Q1 2020.

Profit after tax grew by 38.59% to N7.66 billion from the profit after tax of N5.53 billion reported in the First Quarter of 2020. Earnings per share increased to 96 kobo from the EPS of 69 kobo, which translates to 38.59% growth year on year. At the share price of N51.2, the P.E ratio of Nigerian Breweries, stands at 53.46x with earnings yield of 1.87%.

 

UNITED BANK FOR AFRICA

United Bank for Africa Plc grew its topline and bottom line figures in the first quarter of 2021.

The bank in 3 months achieved Gross Earnings of N155.446 billion, up by 5.62% from N147.169 billion in the first quarter of 2020.

Profit after tax grew by 26.76% to N 38.155 billion from N 30.101 billion reported in Q1 2020. Earnings per share (EPS) of the Bank for the period under review increased by 26.76% to N1.12 from the EPS of N0.88. At the share price of N7.5, the P.E ratio of UBA stands at 6.72x with earnings yield of 14.88%.

 

GUARANTY TRUST BANK

First Quarter report of Guaranty Trust Bank revealed a Gross Earnings of N106.166 billion, down by 5.94% from N112.87 billion recorded the previous year.

GT Bank reported a profit after tax of N45.546 billion, down by 9.03% from 50.067 billion reported in the first quarter of 2020.

Earnings per share for first quarter of the year dropped to N1.55 from the N1.70 in the corresponding period in year 2020. At the share price of N31.2, the P.E ratio of Guaranty Trust Bank stands at 20.13x with earnings yield of 4.97%.

NASCON ALLIED INDUSTRIES PLC

The result showed growth in the company’s topline and bottom line figures for the first three months of the year 2021.

The company reported a turnover of N8.337 billion, up by 21.24% from N6.877 billion reported in the first quarter of 2020.

Profit after tax grew by 15.2% to N723.199 million from the profit after tax of N627.756 million reported in Q1 2020. Earnings per share (EPS) of the company increased to 27 kobo from the EPS of 24 kobo achieved in Q1 2020. At the share price of N14.8, the P.E ratio of NASCON Allied Industries Plc stands at 54.22x with earnings yield of 1.84%.

STANBIC IBTC

The First Quarter report of Stanbic IBTC show decline in the bank’s topline and bottom line figures when compared to last year’s achievement.

The bank reported Gross Earnings of N45.726 billion, down by 25.55% from N61.418 billion reported in the first quarter of 2020.

Profit after tax declined by 45.36% to N11.256 billion from the profit after tax of N20.601 billion reported in Q1 2021. Earnings per share of the bank dropped to N1.01 from the EPS of N1.85 in Q1 2020. At the share price of N50, the P.E ratio of Stanbic IBTC stands at 49.33x with earnings yield of 2.03%.

UNILEVER NIGERIA PLC

Unilever Nigeria Plc in the first quarter of 2021 reported a turnover of N19.43 billion, up by 45.74% from N13.33 billion.

The company declared a loss of N491.996 million in the first quarter of 2021 against the profit after tax of N1.114 billion reported in the first quarter of 2020.

For the period under review, the earnings per share (EPS) of Unilever dropped to -9 kobo from the EPS of 19 kobo. At the share price of N12.95, the P.E ratio of Unilever is calculated as -151.22x with earnings yield of -0.66%.

TRANSCORP PLC

Transnational Corporation of Nigeria (Transcorp) grew its topline and bottom line figures in the first quarter of 2021.

Turnover of the company grew by 58.75% to N24.435 billion from N15.39 billion reported in the first quarter of 2020.

Profit after tax soared by 2426% to N2.041 billion from the profit after tax of N80.790 million. Earnings per share increased to 5 kobo from the EPS less than 1 kobo. At the share price of 80 kobo, the P.E ratio of Transcorp stands at 15.93x with earnings yield of 6.28%.