wazua Fri, Mar 27, 2026
Welcome Guest Search | Active Topics | Log In

18 Pages«<161718
Anticipation of KCB Q1 results 2011
Options
Previous Topic · Next Topic
omega
#171 Posted : Friday, April 29, 2011 11:58:51 AM
Rank: Member

Joined: 6/9/2009
Posts: 85
the deal wrote:
OMG how did those KCB accountants cook up an EPS of 2.41 from 1.7B profits....yet 7.7B gives EPS of 2.76..^^^^^^
...how many issued shares does KCB have?


The annualized EPS of 2.41 is correct.

The problem is the EPS for last year (2010) results. It should have been 2.43 (7,177,973,000/2,950,259,818), instead of 2.76.

To make the matter worse, NSE has been using the bank EPS of 3.40 (instead of the group 2.43) in their weekly reporting and this has created a wrong impression that KCB has a low PE - 7.4 instead of 10.4 based on share price of 25.
Back to top
  |
youcan'tstopusnow
#172 Posted : Friday, April 29, 2011 1:16:32 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Omega, the 2.76 EPS for FY2010 was correct. You can't use 2.95 billion shares as they were not all available from Jan 1st 2010 (The beginning of KCB's financial) The additional shares from the rights came in the middle of the year. You have to take that into account
GOD BLESS YOUR LIFE
Back to top
WWW
  |
omega
#173 Posted : Friday, April 29, 2011 1:56:48 PM
Rank: Member

Joined: 6/9/2009
Posts: 85
youcan'tstopusnow wrote:
Omega, the 2.76 EPS for FY2010 was correct. You can't use 2.95 billion shares as they were not all available from Jan 1st 2010 (The beginning of KCB's financial) The additional shares from the rights came in the middle of the year. You have to take that into account


Total number of issued and fully paid up shares before the Rights Issue was 2,217,777,777.

So, even if you use the shares before the rights issue, that makes the EPS 3.24 (7,177,973,000/2,217,777,777), not 2.76.

So, how was 2.76 arrived at and why is NSE using 3.40?
Back to top
  |
youcan'tstopusnow
#174 Posted : Friday, April 29, 2011 2:20:24 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
omega, I was not suggesting using 2.217 billion shares. I was suggesting using a mean (not exactly the word I'm looking for) of the period each amount of shares was at the market.
This phenomenon was explained here before by some Wazuan. Gordon Gekko was it you?
GOD BLESS YOUR LIFE
Back to top
WWW
  |
Impunity
#175 Posted : Tuesday, May 03, 2011 4:25:36 PM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
Wil it LAORRR to KES. 30 by close of business this Friday?
Today it was hovering around 26.25/26.50
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
Back to top
  |
Gordon Gekko
#176 Posted : Tuesday, May 03, 2011 6:06:18 PM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
@ycsun, you are right. It is the weighted average number of shares that is used to calculate diluted eps - weighted by time and amount. @omega, CPA Part III Section 6, a very painful class nowadays called Financial Reporting, previously known as FA IV.
Back to top
  | | Edit by user: Tuesday, May 03, 2011 6:07 PM | Reason: Not specified
The Merchant
#177 Posted : Tuesday, May 10, 2011 10:49:07 AM
Rank: Veteran

Joined: 5/24/2010
Posts: 846
Location: KENYA
Traders/speculators...sell KCB today, buy next week.
Back to top
  |
18 Pages«<161718
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.