Saudi Catering’s Q2 results miss estimates: Saudi Fransi Capital

Saudi Airlines Catering Co.’s (Saudi Catering) second-quarter net profit (SAR 176 million) fell ten percent below Saudi Fransi Capital’s forecasts, the brokerage firm said in a report.

Quarterly results were said to have been negatively impacted by slower than expected revenues from airlines, which had cancelled flights due to weather conditions. However, the report added that this issue was no reason for concern in the medium term.

The investment arm of Banque Saudi Fransi maintained a “buy” rating on the stock and kept its target price at SAR 236. The recommendation was based on the expectation of a SAR 7.50 per share dividend from the firm this year, as well as its sound financial position and strong cash flow in 2015 and 2016.