Saudi electronics retailer United Electronics Company (eXtra, 4003) rebounded 3.26% on Sunday, October 11, 2026, closing at SAR 55.45 after falling 8.05% on Thursday to SAR 53.70 following its third-quarter results.
The recovery followed a sharp selloff despite higher sales and improving retail performance. Investors remain concerned about earnings pressure at its consumer-finance subsidiary, Tasheel.
Sales Rise, but Net Profit Falls
eXtra reported preliminary third-quarter 2026 revenue of SAR 1.89 billion, up 5.5% from about SAR 1.79 billion a year earlier. Net profit, however, declined 26.7% to SAR 104.63 million from SAR 142.75 million.
Gross profit rose 6.2% to SAR 479 million, while operating profit fell 33.1%. Revenue for the first nine months of 2026 reached SAR 5.96 billion, up 5.3%, as net profit declined by approximately 10% to SAR 301.9 million.
Tasheel’s Credit Costs Weigh on Earnings
The retail business delivered 10.6% profit growth in the third quarter. In contrast, Tasheel Finance saw profits fall by more than 82%, reflecting an increase of around SAR 70 million in expected credit-loss provisions.
This contrast highlights the central question facing investors: can continued sales growth and stronger retail operations offset the pressure from consumer-finance credit costs?
What Saudi Research Firms Expect
In an early-September 2026 report, Aljazira Capital maintained its Overweight recommendation on eXtra, with a target price of SAR 85. The firm highlighted competition and regulatory changes in consumer finance as risks to margins and Tasheel’s asset quality, while suggesting that much of the concern was already reflected in the share valuation.
Aljazira Capital had forecast third-quarter profit of SAR 100.8 million. The reported SAR 104.63 million exceeded that forecast but fell short of the broader analyst consensus of around SAR 127.8 million, underscoring the range of market expectations.
The company’s chief executive also anticipated continued sales growth in the fourth quarter of 2026 and plans for another store opening, offering a positive signal for the underlying retail business.
Technical Outlook: Key Levels for eXtra Shares
The stock is attempting to stabilize after a prolonged decline. Immediate resistance lies at SAR 55.60; a sustained break above it could bring SAR 56.20 and SAR 56.86 into focus. The latter is an important Fibonacci retracement level.
Beyond that, the SAR 57.80–59.00 area represents a more substantial resistance test. Key support stands at SAR 53.40–53.65, and a move below that range would renew downside pressure.
From a preliminary wave perspective, the broader trend remains bearish, while the latest advance could represent the beginning of an upward corrective wave. A sustained break above resistance would be needed to strengthen that scenario.
What Investors Will Watch Next
eXtra’s share performance will likely depend on whether retail sales continue to grow and whether Tasheel can bring credit provisions under control. The latest rebound has drawn attention, but sustained improvement in profitability and price action will be more important in determining the next trend.
