DUBAI May 9 Consumer cyclical shares in Saudi
Arabia may outperform an otherwise weak regional market on
Tuesday following strong financial results from one of the
largest retailers in the kingdom.
Bookstore and electronics seller Jarir made a net
profit of 221.4 million riyals ($59.04 million) in the first
three months to March 31, up 26.5 percent from the year ago
period and above the analysts' average forecast of 179.7 million
Jarir, whose top line grew by 20.3 percent to 1.71 billion
riyals in the period, attributed the rise in its net income to
an increase in sales of smartphones and in its school supplies
wholesale segment, and to lower selling and distribution
"Businesses are starting to get smart about how they spend
their money, and this has become evidential in the results from
most retailers so far," said a Jeddah-based analyst.
The company's board recommended distributing 2.2 riyals per
share for the first quarter.
Most Saudi companies have now reported earnings with most
retailers showing better-than-expected results and an improving
net income. The deadline for all companies to report is May 11.
In Abu Dhabi, the largest listed developer Aldar Properties
reported a first-quarter net profit of 641 million
dirhams ($174.52 million), at the upper end of analysts'
estimates but down from the 649.05 million dirhams it made in
the prior year period.
Aldar's revenue witnessed a 28 percent growth from first
quarter 2016, and the company said it made 1 billion dirhams of
development sales adding that all its future developments remain
on track for handover in 2017.
Sentiment in the region may however remain dampened as Brent
crude contracts stay stuck below $50 a barrel for a
third session in a row.
($1 = 3.7501 riyals)
($1 = 3.6729 UAE dirham)
(Reporting by Celine Aswad; Editing by Biju Dwarakanath)