RCG & Infomedia defy gloom

Both Uncapped 100 stocks have beaten expectations in a downcast market.

Shares in footware retailer RCG Corporation (RCG) and auto parts cataloguing systems maker Infomedia (IFM) are bucking the downtrend on the market this morning as investors warmed to their strong results.

RCG surged close to 14% this morning to 70 cents, its best one-day gain in nearly five years, while Infomedia is up 3.2% at 64 cents.

RCG, the best performing Uncapped 100 stock today, delivered a 10.2% uplift in earnings per share (EPS) to 4.3 cents and upped its dividend by a third to four cents a share for 2012-13. The EPS is 11.3% ahead of market expectations while the dividend was just slightly ahead of analysts’ forecasts.

The owner of The Athlete’s Foot chain is promising to keep its high payout ratio unless it finds an acquisition opportunity and is guiding for a 10% increase in EPS for the current financial year.

Infomedia also posted results that were ahead of expectations and said it expects to post further double-digit growth for 2013-14.

Management reported a 19% increase in net profit to $10.1 million as sales jumped 6.6% to $48.7 million. This compares with consensus estimates of $9.1 million and $48.2 million, respectively.

The company enjoys strong demand for its software and has managed to rein in costs, which contributed to its stronger margins.

Infomedia is tipping net profit to grow by between 10% and 19% and for sales to increase by 8% to 12% for 2013-14.

Both stocks are in the Uncapped 100.