- Solutions by STC’s second-quarter profit reached 446 million riyals, exceeding estimates of 394.3 million riyals, despite a 1.5% decrease year-over-year (y/y).
- Revenue increased by 4.7% y/y to 2.90 billion riyals, slightly below the estimated 2.97 billion riyals.
- Operating profit rose by 12% y/y to 446 million riyals, surpassing the estimate of 383.7 million riyals.
- The company attributes the revenue increase to growth in core ICT services and IT managed and operational services.
- Digital service revenues, however, experienced a decline according to the report.
- Market sentiment includes 10 buy ratings, 7 hold ratings, and 1 sell rating for Solutions by STC.
A look at Arabian Internet & Communica Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using Smartkarma Smart Scores have rated Arabian Internet & Communications Services Company positively for its long-term outlook. With strong scores in Dividend, Growth, Resilience, and Momentum, the company is deemed to have a bright future ahead. Its focus on value, combined with a solid dividend policy, robust growth potential, resilience in challenging environments, and positive momentum, positions Arabian Internet & Communications Services Company as a promising investment opportunity.
Arabian Internet & Communications Services Company, operating as Solutions by STC, offers a range of information technology services including cybersecurity, system integration, managed services, business outsourcing, cloud, and IoT digital solutions. Serving both public and private sectors in Saudi Arabia, the company’s strategic positioning in the IT services sector aligns with its impressive Smartkarma Smart Scores, indicating a favorable overall outlook for investors looking towards the future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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