Riyadh-Mubasher: Jarir Marketing Co. (JMC) posted a weaker-than-expected set of Q4-15 results, with net income increasing 1% year-on-year to SAR 208 million, NCB Capital (NCBC) said in a report.
The fourth-quarter earnings were 3-5% below NCBC and consensus estimates.
The earnings deviation came mainly from disappointing sales which fell 4% year-on-year, hurt by weak sales of electronics. This led to gross margins expanding 82bps y-o-y and coming 69bps higher than NCBC's estimates.
Jarir trades at a 2016E P/E of 13.0x versus historical average of 19.5x.
The research firm assigned the stock an 'Overweight' rating, setting the price target at SAR 219.8 compared with the current price of SAR 141.3.
