Arabian Cement’s Q2 net profit falls short of forecast: Aljazira Capital

Arabian Cement Co.’s (ACC) Q2-2015 net profit (SAR 161.9 million) missed Aljazira Capital’s estimate by 12.6 percent and a consensus forecast by 15.2 percent, the brokerage firm said in a report.

The investment arm of Bank AlJazira maintained an “overweight” rating on the stock and cut its target price to SAR 89.50 on lower operating profit and higher-than-expected cost of goods sold in the second quarter.

Aljazira Capital added that ACC , which trades below industry peers, has strong growth potential, a robust balance sheet and attractive dividend yield.

On Sunday, the cement producer reported a 19 percent year-on-year drop in Q2-2015 net profit, while H1-2015 net profit declined three percent to SAR 357.2 million, when compared to the same period last year.