Egyptian firms’ earnings to hike 46% in Q2 of 2017: Report



Tue, 11 Jul 2017 - 11:23 GMT


Tue, 11 Jul 2017 - 11:23 GMT

Egyptian Exchange- Archive

Egyptian Exchange- Archive

CAIRO – 11 July 2017: Egypt’s aggregate earnings are likely to rise by 46 percent year-on-year to LE 11.6 billion ($649 million) in the second quarter of 2017, Ahmed Abdel Naby, Strategist at Mubasher International, said in a recent report.

Revenues are also expected to grow 40 percent to reach LE 62.43 billion in Q2 of 2017, as per the anticipations announced for 45 firms.

“We believe companies are starting to reap the fruits of FX rates stability. We note that companies’ Q2 of 2017 results will be compared to those of Q2 of 2016 when shortage in foreign currencies peaked, thus negatively affecting companies’ operations at that time,” the report added.

The financials and real estate sectors are seen to contribute the most to the growth of aggregate earnings by 46 percent and 22 percent, respectively.

Ezz Steel and Global Telecom profits are projected to surge 229 percent and 1,376 percent year-on-year to LE 308 million and $38 million against losses of LE 240 million and $3 million, respectively, Abdel Naby highlighted.

Moreover, the report stated that the second contributor to the earning’s hikes would be Elsewedy Electric with profits expected to level up 54 percent year-on-year to LE 1,348 million.

“We forecast the impressive performance achieved in Q1 of 2017 will continue through Q2, induced by (1) high GP/ton and GPM for the wires and cables, triggered by low-cost inventory and (2) the execution of major turnkey projects, including Siemens, Angola and the two newly-awarded power transformation projects in Egypt and Qatar,” Mai El-Sayed, industrials sector analyst at Mubasher International said.

The analyst anticipated the earnings growth of companies to increase 27 percent year-on-year, excluding companies with year-on-year earnings growth beyond ±100 percent.



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