EOH's share price dropped over 4.5% on Monday after the group released a trading statement predicting solid earnings growth for the latest financial year. The technology service provider said it expected revenue for the year ended 31 July 2017 to increase 21%.
The group said headline earnings per share (HEPS) would likely increase by between 10% and 20% year-on-year and come in between 791cps and 863cps, compared to 719cps reported in the previous year.
Earnings per share (EPS) are expected to be between 774cps and 845cps, also reflecting an increase of between 10% and 20% compared to 704cps reported last year.
But investors seemed unimpressed by the results and the stock on the JSE closed 4.63% down at R105 per share on Monday.
A year ago the company reported 31% revenue growth to almost R12.8 billion while HEPS and EPS both rose 25%.
The market also did not respond well back in May when founder and CEO, Asher Bohbot, announced he was leaving the company, with the share price dropping almost 7% the day the announcement was made. The share price fell again in July when media reports stirred up controversy through allegations of corrupt business practices, which EOH denied.
Year-to-date the EOH share price has fallen 35.83% and has dropped 26.28% over the past 12 months.
EOH's financial results for the year ended 31 July 2017 are expected to be released on 19 September 2017.
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