Analysts expect Dimension Data and Datatec to report hefty declines in headline earnings per share next week.
Datatec is to report its results for the six months to September next Wednesday evening, while DiData`s figures for the year to September are to be released the following day.
Consensus information provided by I-Net indicates that analysts expect DiData to report a 77.4% decline in headline earnings per share to 24.2c.
I-Net`s method is to receive individual forecasts from all major stockbrokers and calculate a consensus forecast which is the median value of the individual forecasts.
DiData warned in August that its gross margin for the year would be less than indicated at the interim stage because of a slow September quarter at Singapore-based subsidiary Datacraft Asia.
The group indicated at the interim stage that it would report a sequential increase in dollar revenue in the second half and a gross margin of at least 22.1% for the full year.
However, it said in August that while it was on track to achieve its sequential revenue target, it expected an overall gross margin of about 21%.
A Reuters poll of eight analysts has painted a similar picture. Reuters reports that its poll indicates that analysts are expecting headline earnings a share to plunge from 12.8 US cents to 2.42 US cents.
Datatec warned in September that its interim headline earnings per share would be substantially lower than those of the same period last year.
It blamed this mainly on initial trading losses associated with the recently acquired Landis Business Partners operation in Europe and on foreign exchange losses resulting from the appreciation of the rand. It said the results would also be affected by lower margins in the industry.
Datatec says its management believes revenue has stabilised, but no recovery is expected until at least calendar 2003. However, it expects second-half headline earnings per share to be higher than those of the first half.
According to I-Net figures, analysts expect full-year headline earnings of R1.72, 35% lower than for the previous year.
The Dimension Data share, which lost 11c to close at 415c on the JSE yesterday, was trading at 392c late this morning. Datatec, which dropped 15c to end at 775c yesterday, was unchanged this morning.
Share
