DOHA: Led by Industries Qatar (IQ), Qatar’s listed companies’ fourth quarter (Q4, 16) are projected to grow by an estimated 18 percent on year-on-year basis. IQ earnings (+46 percent) are expected to benefit from higher steel and commodity chemical prices.
Ooredoo (+46 percent) and QNB (+29 percent) are among other companies that are expected lift the Q4 earnings. QIIB is projected to grow by 41 percent on quarter-on-quarter basis, invetment bank SICO that covered a total of 166 companies in the GCC, including 15 in Qatar, noted in its ‘consensus earnings estimates for Q4, 16’. The covered companies represent 77 percent of the total market capitalization.
According to SICO analysts’ estimates, the GCC companies’ Q4 profits are forecasted to increase 15 percent YoY, but decline 10 percent QoQ. Most GCC companies’ results are expected to be higher on YoY, except for UAE .
Saudi Companies’ profits that have been estimated are expected to increase by 15 percent YoY, led by earnings growth YoY from SABIC. Also, aggregate Saudi banks earnings are forecasted to report modest earnings growth (+2 percent), with earnings of Al Rajhi Bank’s estimated to increase 4 percent (supported by robust NII growth), Samba 9 percent , and SABB 10 percent due to NIM expansion. In telecoms, the aggregate earnings are expected to be 13 percent higher.
UAE companies’ aggregate earnings are estimated to remain unchanged YoY. Etisalat’s profit is forecasted to be 17 percent; the Egyptian pound devaluation to impact performance. Adding to that, earnings of UAE banks are estimated to be 7 percent lower, ADCB’s bottom line is estimated to decline by 18 percent as the bank is expected to be hit by higher provisioning charges. FGB is forecasted to post 21 percent lower earnings, led by higher operating expenses and NIM contraction.
