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Egypt’s Palm Hills Development reported on Wednesday a drop in fourth quarter (Q4) 2018 earnings, pushing the company’s stock price lower.
The company reported a Q4 2018 net profit of 172 million Egyptian pounds ($9.8 million), compared to 339 million pounds in Q4 2017, translating into a 49 percent year-on-year drop.
Amir Badran, research analyst at Egypt-based brokerage Naeem told Zawya by email that the company’s Q4 earnings missed its estimate.
“Off-plan sales of EGP2.6bn were down 6% YoY (year-on-year) and up 31% QoQ (quarter=on-quarter) – in line with our estimates. Gross margin dropped 11 percent QoQ and 7.6 percent YoY to 26.4% - the lowest since 2Q16 (second quarter of the year 2016),” Badran added.
The company’s shares were trading 1.06 percent lower by 13:49 GST, but have gained 28.9 percent so far in 2019.
(Reporting by Gerard Aoun; Editing by Michael Fahy)
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