Agility Rises to Three-Year High as Profit Jumps: Kuwait MoverFiona MacDonald
Agility climbed to the highest level in more than three years after the Kuwait-based company reported a 46 percent jump in first-quarter profit.
The shares of Agility, which supplies logistics in developed and emerging markets, jumped 3.1 percent to 670 fils, the highest close since February 2010. About 3.2 million shares traded today, or 1.6 times the three-month daily average, according to data compiled by Bloomberg.
Agility said yesterday net income advanced to 10.1 million dinars ($35.5 million) from 6.9 million dinars a year earlier as revenue rose 10 percent. The company, which operates in markets including the Middle East, Africa, India, China and Brazil, won a United Nations contract in Darfur valued at $190 million.
“The management of Agility has promised shareholders there’s much more to come, that they have invested in the right geographical scope,” said Fouad Darwish, head of brokerage at Kuwait-based Global Investment House KSCC. “Agility has rebounded in terms of revenue and contracts since losing the very lucrative American contracts.”
Agility is under indictment on allegations it overcharged the U.S. military on a multi billion-dollar contract to supply food for troops in Kuwait and Iraq. The company said in April 2012 it filed a claim seeking about $225 million from the Department of Defense for breaching contract terms. In December, Agility said a U.S. court ordered the government to end a contracts suspension for two of its units.
The stock has gained 31 percent this year, compared with a 25 percent rise in the benchmark index. Agility’s 14-day relative strength index rose to 72 today. A reading above 70 indicates to some analysts that a security or index is poised to decline.