Catcher shares plunge on Q1 results
Shares of metal casing supplier Catcher Technology Co. ( ) took a beating Wednesday morning after the company reported worsethan-expected results for the first quarter, dealers said.
Investors also punished the stock for the company’s cautious outlook for the second quarter and dissatisfaction with its proposed cash dividend for 2014, they said.
As of 10:52 a.m., shares of Catcher had fallen by the maximum daily decline of 7 percent to NT$350.00 (US$11.48), with 12.67 million shares changing hands. The weighted index on the Taiwan Stock Exchange was down 0.85 percent at 9,872.07.
“Catcher’s bottom line was hit by higher labor costs and foreign exchange losses. Investors who had been upbeat about the company previously rushed to cut their holdings soon after the bourse opened today,” market analyst Eric Lai said.
Net Profit NT$4.65 Bil. in Q1
At an investor conference on Tuesday, Catcher said it posted a net profit of NT$4.65 billion for the January- March period, up 55.9 percent from a year earlier but down 27.7 percent from a quarter earlier due to slow season effects.
It had first quarter earnings per share of NT$6.04, compared with NT$3.97 a year earlier and NT$8.41 a quarter earlier.
The first quarter number came in just below the market consensus forecast of about NT$6.20 and much lower than the NT$6.7- NT$6.9 forecast by some foreign brokerages.
Catcher’s gross margin fell to 46.6 percent in the first quarter from 47.9 percent in the previous quarter, a decline the company attributed to higher labor costs. But the first quarter figure was still higher than the 41.3 percent seen in the first quarter of 2014.
Hurt by Higher Taiwan Dollar
The company’s earnings were also hurt by a NT$200 million foreign exchange loss because of a higher Taiwan dollar.
“Now many investors are shifting their attention to Catcher’s second quarter outlook. The current selling also came after the company said that its sales growth momentum will not pick up significantly until September,” Lai said.