Maaden’s Q4 misses estimates due to higher costs: Al Rajhi Cap
Saudi Arabian Mining Company’s (Maaden) fourth-quarter net profit of SAR 277 million missed Al Rajhi Capital’s estimates of SAR 348 million, given a 10 percent rise in the cost of sales, the brokerage firm said in an earnings report on Sunday.
However, the company's revenue of SAR 3.79 billion came in line with the brokerage's estimates of SAR 3.77 billion.
"Overall, the company’s Q4 results were below expectations, but operationally it is still well positioned for the long term, the report noted.
Al Rajhi Capital assigned "underweight" rating on the stock, lowering the target price to SAR 48.50 a share.
"We remain positive on Maaden’s long term fundamentals prospects, given the likely positive outcome of its future projects, which could take a couple of years to fully ramp up" it added.