Jan. 8 (Bloomberg) -- Dar Al Arkan Real Estate Development Co. dropped the most in almost six months after fourth-quarter earnings missed analysts’ estimates.
The shares slumped 6.1 percent, the most since July 11, to 8.5 riyals at the 3:30 p.m. close in Riyadh. The stock was the biggest decline on the Tadawul All Share Index today.
Quarterly profit at Dar Al Arkan, the biggest publicly traded Saudi property company by assets, dropped to 144 million riyals ($38 million) from 290 million riyals due to lower margins on property sales, the Riyadh-based company said in a statement to the Saudi stock market. The mean estimate of five analysts was for a profit of 252 million riyals, according to data compiled by Bloomberg.
“We are slightly concerned about the dent in the gross margin, which we can only attribute to a decline in profitability of quarterly land sales,” said Jan Pawel Hasman, a real-estate analyst at EFG-Hermes Asset Management. “The bottom-line weakness might have been additionally caused by increased depreciation charges driven by the newly launched investment properties, as well as increased marketing and financing costs.”
Four analysts have a buy rating on the stock, while three recommend investors hold the shares, according to data compiled by Bloomberg.
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