Care’s Q4 earnings in line with estimates, says Aljazira Cap

National Medical Care Co. (Care) reported a Q4 2017 net income on SAR 30.67 million, slightly above Aljazira Capital’s estimates of SAR 28.6 million, the research firm said in an earnings review.

The deviation from estimate was mainly due to slightly higher than estimated top-line growth and gross margins, it added.

Revenue for the quarter stood at SAR 225.7 million, up nearly 19 percent year-on-year.

Aljazira it holds a positive outlook on Care’s revenues, supported by the firm’s expansion plans in the second half of 2018. The research firm also revised its revenue estimates for Care’s FY 2018 to SAR 980.5 million.

“The company announced the collection of around 47.4 percent of outstanding receivables, easing a major pressure point,” the report said. “The collection sets the tone for the potential of lower provisions going forward, a move from the previously conservative approach on receivables.”

Aljazira updated its recommendation on Care’s stock to “overweight,” with a target price of SAR 54.7 per share.