Jarir Marketing Co. (Jarir) is expected to make a net income of SAR 179.5 million in Q1 2017, up by 3.1 percent year-on-year (YoY), Riyad Capital said in an earnings preview.
The investment bank expected an improved first quarter with a top to bottom growth. Revenues are projected to rise by 2 percent YoY to SAR 1.45 billion.
“The company continues to benefit from higher sales of smartphones and other electronic item due to closure of telecom shops on the high street but overall retail sales mood remains sluggish.”
Gross profit is expected at SAR 213 million, with gross margins of 14.7 percent in Q1.
Jarir also opened two new showrooms in Q1, taking the total to 47.
The brokerage raised target price to SAR 118.00 from SAR 106.00, and recommended a "Neutral" stance.
“Despite sluggish retail spending data, the stock has rallied by +16.1 percent in Q1 versus a -3.5 percent decline in the TASI.”
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