Jarir's Q3 figures exceed forecasts, says Riyad Cap

Jarir Marketing Co. (Jarir) reported a 17 percent year-on-year (YoY) jump in net income to SAR 288 million in Q3 2018, beating Riyad Capital's forecasts of SAR 253 million and market expectations of SAR 258 million, the brokerage said in a note.

Revenues stood at SAR 1.93 billion, 17 percent higher YoY, mainly driven by rising sales of smart phones, along with an increase in the number of stores.

Riyad Capital maintained a target price of SAR 181 and a "Neutral" rating.

The opening of new stores helped spur organic growth; Jarir was able to open one new store this quarter, taking the total number of stores to 53.

"We are raising our 2018 net income forecast to SAR 941 million from SAR 916 million previously on the back of better than expected margins. However, we maintain our full year revenue forecast at SAR 7.4 billion", Riyad Capital expected.