Currency in ZAR
Last close As at 26/05/2023
ZAR36.00
▲ −1.55 (−4.13%)
Market capitalisation
ZAR8,097m
Research: TMT
As Datatec expects to report EPS measures for FY23 that differ from FY22 by more than 20%, it has provided an update prior to reporting full FY23 results on 23 May. Reported EPS is expected to be 36.9c (FY22: 16.7c) and underlying EPS (which excludes one-off items such as the gain on the September 2022 sale of Analysys Mason) is expected to be 7.9c (FY22: 18.7c). Adjusting for exceptionally high share-based payments, underlying EPS would be 29.5c (FY22: 27.4c). We plan to update our forecasts when we have reviewed the full FY23 results.
Datatec |
Confirming EPS for FY23 |
FY23 trading update |
Software and comp services |
18 May 2023 |
Share price performance Business description
Analyst
Datatec is a research client of Edison Investment Research Limited |
As Datatec expects to report EPS measures for FY23 that differ from FY22 by more than 20%, it has provided an update prior to reporting full FY23 results on 23 May. Reported EPS is expected to be 36.9c (FY22: 16.7c) and underlying EPS (which excludes one-off items such as the gain on the September 2022 sale of Analysys Mason) is expected to be 7.9c (FY22: 18.7c). Adjusting for exceptionally high share-based payments, underlying EPS would be 29.5c (FY22: 27.4c). We plan to update our forecasts when we have reviewed the full FY23 results.
Year end |
Revenue |
PBT* |
Diluted EPS* |
DPS |
P/E |
Yield |
02/21** |
4,109 |
73.1 |
13.2 |
6.6 |
12.9 |
3.9 |
02/22 |
4,546 |
69.1 |
14.2 |
39.3 |
12.0 |
23.0 |
02/23e |
5,017 |
74.3 |
20.2 |
69.9 |
8.5 |
40.9 |
02/24e |
5,282 |
95.6 |
23.3 |
7.5 |
7.3 |
4.4 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **Includes Analysys Mason.
In its year-end trading update, Datatec confirmed that it expects to report FY23 revenue from continuing operations of $5.14bn (+13% y-o-y). It also provided detail on the earnings per share it expects to report on several different bases. Reported EPS, which includes discontinued operations and a $109.9m gain on the disposal of Analysys Mason, is expected to be 36.9c β this compares to our 60.1c forecast (which included a gain on sale of $113.8m). Underlying EPS, which excludes acquisition-related costs, asset impairment charges, gains on disposal, fair value adjustments and other one-off items, is expected to be 7.9c compared to our 8.2c forecast. The company noted that this includes a $55.2m share-based payment charge ($52.6m for continuing operations, $2.6m for discontinued operations), mostly due to the increase in the valuation of Westcon resulting from its strong performance. Excluding this, underlying EPS would be 29.5c (FY22: 27.4c) β this value will be used as the reference point for any FY23 final dividend. Finally, headline EPS is expected to be -9.3c (FY22: 16.2c) β this also excludes the gain on sale of Analysys Mason.
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Research: Healthcare
OpGen has reported a productive quarter marked by advancements across the board. Operating loss improved to $5.1m during the quarter (from $5.8m in Q122), driven by 94% y-o-y top-line growth (to $0.9m) and stronger cost controls (total expenses of $6.0m vs $6.3m in Q122). Looking ahead, we anticipate tailwinds from the post-period signing of the Unyvero distribution partnership with Fisher Healthcare and the de novo FDA submission for its UTI panel in April. While Unyvero and ARES will be the key focus areas for FY23, we expect advancement of the FIND collaboration to be another important catalyst. With $11m in gross proceeds raised to date in FY23, with offsets from upcoming debt repayments, we anticipate OpGen will need to raise another $7.5m to fund operations for the second half of FY23. Our updated estimates reflect the recent newsflow, including the Fisher Healthcare distribution agreement. Our overall valuation increases to $71.5m (from $66.7m) but our per-share valuation decreases to $11.7/share ($12.2/share previously) with the higher post-raise share count.
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