Report: 62pc of GCC-listed firms miss analysts’ estimates

27/12/2013 09:27 AST

More than half of the GCC listed companies’ results in the third quarter of 2013, including the results of many firms in Qatar, missed analysts’ estimates. Most of the ‘consumer’ companies reported lower than expected earnings. Telecom companies, including Ooredoo, also missed estimates as a result of higher than expected foreign exchange losses.

On the other hand, 15 out of 31 banks reported higher than expected profits. A snapshot chart of GCC Equities prepared by Investment Bank SICO revealed yesterday an estimated 62 percent of GCC-listed companies missed analyst estimates in 3Q13 and actual profits were $697m below estimates with only Omani and UAE companies beating forecasts. Reported 3Q13 net profits of Saudi firms missed analyst expectations by SR614m.

SICO covered 124 companies including 14 listed on Qatar Exchange (QE). The report noted QNB reported QR159m lower-than expected net income in 3Q13. Also Commercial Bank of Qatar’s (CBQ) net income fell 49 percent YoY. Ooredoo missed estimates by a significant margin as a result of higher than expected FX losses.

Profits of GCC listed companies increased by 6 percent YoY to reach $14.5bn. Double digit profit growth YoY was witnessed in UAE, and Oman whereas Qatar and Kuwait had a YoY decline in net profits. Saudi Arabia and Bahrain saw modest profit growth.

GCC listed banks’ profits increased by 3 percent YoY during the period. QNB reported strong double digit profit growth. Real estate, telecom, engineering & construction, transportation utilities, consumer and other financial sectors reported double digit YoY profit growth in 3Q13.

In 3Q13, the region’s utilities sector reported earnings growth of 15 percent YoY led by a 22 percent increase in Qatar Electricity & Water profits.

Eight out of 10 best performing stocks were those that beat 3Q13 analyst estimates. And 90 percent of the top 10 losers during the past three months were those that did not meet investors’’ expectations for 3Q13 profits.

The Peninsula