eXtra Q2 misses estimates on weaker sales volume: Al Rajhi Cap

10/07/2018 Argaam

 

United Electronics Co. (eXtra) second-quarter net profit of SAR 45.6 million was below Al Rajhi Capital and consensus estimates by 4.1 percent and 3 percent, respectively, the financial advisory firm said in an earnings review.

 

“The deviation can be primarily attributed to weaker than estimated top-line, which is most likely due to lower-than-expected sales volume,” the report said.

 

In Q2, the electronics market was likely impacted by significant sales promotions by smaller players on the back of implementation of Saudization.

 

“However, eXtra’s flattish top-line on the back of reduced market size implies likely market share gains by the company,” Al Rajhi Capital said.

 

eXtra announced SAR 0.75 per share dividends for H1 2018, which translates to an annualized dividend yield of 2.5 percent.

 

Going forward, Al Rajhi Capital expects eXtra to continue to gain market share as the market structure shifts towards the organized players.

 

Al Rajhi Capital revised its rating on eXtra to “neutral” with an unchanged target price of SAR 60.3 per share.

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.