Solutions by STC’s 1Q profit exceeded expectations, amounting to 353 million riyals, marking a 16% increase year-on-year.
The company’s revenue was tallied at 2.81 billion riyals, showing a 5% growth year-on-year. However, it fell below the estimated 3.02 billion riyals.
The operating profit reported was 370 million riyals, up by 3.6% year-on-year but lower than the 398 million riyals estimated by two distinct estimates.
There was an increase in Earnings per share (EPS) from 2.55 riyals to 2.97 riyals year-on-year.
The rise in profit was attributed to various factors, including an increase in core ICT services, IT managed and operational services, and digital services.
Opinions on stock performance are varied with 5 buys, 7 holds and 3 sells.
A look at Arabian Internet & Communica Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
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 utilizing the Smartkarma Smart Scores have indicated a positive long-term outlook for Arabian Internet & Communica. With a strong focus on Growth and Resilience, scoring 4 and 5 respectively, the company is positioned well for future expansion and to weather economic uncertainties. The company’s dedication to providing information technology services, cybersecurity, and digital solutions aligns with the growing demand in the market.
While the Value and Dividend scores are moderate at 2, indicating room for improvement in these areas, the Momentum score of 3 suggests a steady progress in the company’s overall performance. Arabian Internet & Communica, through its Solutions by STC brand, caters to both public and private sectors in Saudi Arabia with a range of services such as connectivity, cloud solutions, and business outsourcing, showcasing a diversified portfolio with potential for further growth.
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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