On Monday 25th of October, 2016, MTN Group, the parent company of MTN Nigeria will release its Q3 result. Analysts are already predicting what outcome we should expect.
Financial Times surveyed over 17 investment analyst, while some of them advised that MTN Group will outperform the market, some also warned that the stock will under perform.
The poll also shows that the position has been the consensus forecast since the sentiment of investment analysts improved on Aug 11, 2015. Analysts also advised investors to hold onto their positions in MTN Group Limited.
Doing a drill down, these is how analysts polled voted as at 18th of October, 2016:
- Last year, 5 of these analysts recommended MTN as a buy, but according to the latest rating, only three of them recommended MTN’s stock as a buy
- Last year, 8 amongst these analysts said MTN would outperform its peers (When a stock performs better than the market as a whole, or a mutual fund performs better than the benchmark against which it is evaluated.). But for the next quarter, only 6 predict the the stock would outperform.
- Surprisingly, last year, two among the analysts advised that investors should hold. Their latest poll shows that 5 amongst them advise a hold position.
- As a sign of caution, last year, only one among the analysts said the stock will outperform. This year, three among them said MTN will under perform (When a stock does not match the performance of others in its sector, or the performance of the market as a whole, over a given period)
- Lastly, none of the analysts recommend a sell advise to investors.
As a colour of what is to come, in 2015, MTN Group Ltd reported a dividend of 13.10 ZAR, which represents a 5.22% increase over last year. The 15 analysts covering the company expect dividends of 7.51 ZAR for the upcoming fiscal year, a decrease of 42.64%.
MTN Group’s stock [MTN:SJ] has fallen by over 37.7% year to date. At the begining of the year, the stock went for ZAR17,187 per stock, at at yesterday at the close of trading, the stock price was ZAR10,700 per stock.
MTN Group is the largest telecom company in Africa by revenue. The company has faced series of challenges since it was fined NGN330 billion by the Nigerian government.
Part of the major factors that will affect its financial performance are internal and external to the company. After its half year result delivered the worst result in its 24 years of operation, the company is looking at raising more funds through debt to pay its investors and settle its Nigerian fines.
The company’s Q3 result is billed to be released on Monday, 00.08am South African time.