CUTIX Gains 30% on Earnings Forecasts, Unusual Trade Volume
Reflecting positive investors’ sentiment, CUTIX, an electronic and electrical production company, saw its market value increase by about 30% in the equities market to close at N21.1 billion on Friday.
The company shares have become investors toast in the recent times, pushing its market valuation uptrend more often than sell side. Inflation rate has pushed electrical products upward while companies face threat of high production costs.
Trading volume on CUTIX shares were strong last week ahead of the company’s earnings release. A further check on its regulatory filing on the Nigerian Exchange showed there was no insider dealing in the company shares.
Its share price rose to N5.99 on Friday in the local bourse, from N4.62 at the beginning as investors traded as much as about 195 million midweek, lifting its market price to N6.13.
On Thursday, about 29 million shares of CUTIX were traded in the market. This pushed share price to N6.55 in the local bourse. Then, transaction on Friday cutback the company share price to N5.99 as investors traded 7.318 million shares.
Earnings
In its earnings release for the fourth quarter of 2023, CUTIX grew earnings per share by 48% year on year to 34 kobo in Q4-2024 from 23 kobo in Q4-2023, it said in its financial report.
In its latest earnings forecast, the company said it is expecting revenue to grow by 5% in the second quarter of the financial year 2025 when compared with a 10% uptrend forested in the first quarter of the same year.
CUTIX estimated that its pretax profit will reach N559 million in Q2-2025, up from N546 billion the company estimated in the first quarter. Raw material costs is expected to be steady at 63% of the company’s revenue as a result of exchange rate fluctuation and government policies on clearing.
The company said it expects distribution costs to increase in the second quarter of its financial year 2025, while forecasting that finance costs will be steady. CUTIX anticipates profit to settle at about N378 million in Q2-2025 #CUTIX Gains 30% on Earnings Forecasts, Unusual Trade Volume Interest Rate Sensitive Nigerian T-Bills Yield Spikes to 25%
