Al Rajhi Capital commented on Jarir Marketing Company's reported Q3-12 preliminary results which showed a slight decline in revenues (-1.6% y-o-y). The company attributed this drop to below expected sales of smart phones as customers await the arrival of new phones with latest technology, the report cited.
On the other hand, the company announced a reasonable growth in net income (5.1% y-o-y; and 3% below Al Rajhi Capital's estimates). Gross profit and operating profit grew reasonably by 5.2% and 6.0% respectively, supported by strengthened margins due to back to school season.
The report issuer concluded by sayinng that the results seemed mixed, yet in line with their forecasts. The financial serivices company pointed out they were awaiting full results to update their rating and target price on the company.