eTranzact Plunges Sharply as Investors Exit Positions
Nigerian leading payment processing company, ETranzact plunged sharply in the stock market as investors sell down the company shares as sentiment dropped.
In successive negative price movement, the Nigerian leading payment and switching company share price fell to N4.80 from N6.50 at the beginning of the trading week.
Data from the Nigerian Exchange showed that the market value of ETranzact declined to N44.159 billion on Friday when 545,000 shares valued at N2.879 million exchanged hands.
Data showed that ETranzact is close to its 52-week low on NGX following the sell pressures that last three out of five days in the local bourse. The payment processing company share price is trading at 40% discount to its 52-week in the stock market.
The company targets about N365 million profit for the first quarter of 2025, details from its earnings forecast obtained by MarketForces Africa revealed.
In the period, ETranzact expects revenue to reach N2.204 billion, estimated costs of sales of N291.4 million, leaving its gross profit at N1.913 billion.
The company forecasted N1.446 billion as operating expenses. Operating profit is anticipated to settle at N466.485 million in the first three months in 2025.
ETranzact expects inflows of N59.5 million from investment income to boost its earnings while finance costs is estimated at N4.9 million in the period.
In 2024, ETranzact profit rose by about 45% year on year to N3.52 billion from N2.432 billion in the comparable period in 2023, details from its unaudited financial statement revealed.
The company boosted its bottom line performance despite posting about 12.5% year on year decline in 2024 revenue. As sales slowed, ETranzact reported that its revenue fell to N29.05 billion in 2024 from N33.719 billion.
Its profit rose sharply due to sharp moderation in costs of sales, down by 28.41% year on year to N18.119 billion from N25.312 billion in 2023. #eTranzact Plunges Sharply as Investors Exit Positions#
