Tag Archives: Discovery

Move into banking takes a short-term toll on Discovery

On Thursday, Discovery ended marginally higher, up 1.29% at R121.25, following the release of a trading statement for the year ended 30 June 2016. In it, the group advised shareholders  it expects  normalized headline earnings to increase by between 5% and 10%. However, on a per share basis, normalized earnings per share are set to increase by between 0% and 5%, to between 672.2 cents and 705.8 cents, up from 672.2 cents in 2015. However, it must be noted that the group’s results were affected by increased investment in new initiatives, including the investment in the planned expansion of its business model into banking, and costs arising from growth in its international operations.

Continue reading Move into banking takes a short-term toll on Discovery

Discovery gets slammed 5.56% on trading statement

Discovery fell 5.56% yesterday after releasing a trading statement advising shareholders to expect the groups basic earnings per share to decrease by between 45% and 55%. Earnings per share are expected to come in at between 266.7 cents and 325.9 cents, down from a restated amount of 592.6 cents in the previous corresponding period. Meanwhile, headline earnings per share are expected to come in at between 264 cents and 322.6 cents, a decrease of between 45% and 55%, down from 586.6 cents a year ago. The group also provided a normalised headline earnings per share figure, which management believes is the most relevant indicator of business performance. This normalised earnings figure is expected to increase by between 0% and 5%, to between 335.9 cents and 352.7 cents, up from 335.9 cents previously. The group’s results are expected to be released on the 25th of February 2015.
Continue reading Discovery gets slammed 5.56% on trading statement

Discovery: Upbeat update

Yesterday, Discovery closed 0.82% lower after releasing a trading statement for the year ended 30 June. In the update, the integrated financial services organization advised shareholders that it expects basic earnings per share to increase by between 60%-70% and come in at between 893.3 cents and 949.8 cents, from a restated amount of 558.7 cents. However, normalised headline earnings per share are only expected to increase by 10%-20% to between 654.3 cents and 713.8 cents. This is mainly due to the increase of shares in issue after the rights issue earlier this year. Currently, the share sits as one of our Top 10 stocks to own. It trades on a PE of 15.56, a DY of 1.26% and has returned to 31.4% in the last 12 months.
Continue reading Discovery: Upbeat update