easyJet (LON:EZJ) Releases Quarterly Earnings Results

easyJet (LON:EZJ) announced its earnings results on Thursday. The company reported GBX (50.10) earnings per share (EPS) for the quarter, Digital Look Earnings reports. The business had revenue of GBX 395 million for the quarter. easyJet had a net margin of 4.89% and a return on equity of 16.07%.

Here are the key takeaways from easyJet’s conference call:

• easyJet said H1 results were in line with expectations, but winter losses remain above the company’s original targets and management still wants to structurally reduce seasonal losses over time.
• Operational performance improved, with passengers up 6%, load factor rising to 90%, on-time performance and customer satisfaction both improving, and easyJet Holidays growing passengers by 22% and profitability by 39%.
• Management acknowledged pressure from market oversupply on beach routes, higher airport fees, inflation, and a GBP 25 million fuel cost hit from March volatility, while saying summer CASK ex-fuel should return to low-single-digit growth.
• The company emphasized a strong balance sheet with GBP 4.7 billion in liquidity, GBP 434 million net cash, and fuel hedging that is 72% covered at an average of about $726 per metric ton, which it said helps protect both earnings and customers.
• easyJet highlighted a more disciplined medium-term strategy, including a GBP 2.5 million per-aircraft hurdle rate, accelerated retirement of A319s by 2029, and an expected GBP 250 million P&L efficiency benefit from upgauging in 2027-2028.

easyJet Trading Down 1.2%

EZJ traded down GBX 4 during trading on Thursday, hitting GBX 343.10. 9,598,262 shares of the stock were exchanged, compared to its average volume of 35,441,824. The company has a debt-to-equity ratio of 83.65, a quick ratio of 1.09 and a current ratio of 1.11. The firm has a 50 day simple moving average of GBX 364.44 and a 200 day simple moving average of GBX 441.31. The firm has a market cap of £2.56 billion, a price-to-earnings ratio of 5.30, a P/E/G ratio of 0.59 and a beta of 1.71. easyJet has a 1 year low of GBX 332.60 and a 1 year high of GBX 590.60.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on EZJ. Royal Bank Of Canada decreased their price target on easyJet from GBX 440 to GBX 415 and set an “outperform” rating for the company in a research note on Friday, April 17th. Deutsche Bank Aktiengesellschaft reduced their target price on easyJet from GBX 465 to GBX 340 and set a “sell” rating on the stock in a research note on Thursday, March 19th. JPMorgan Chase & Co. decreased their target price on easyJet from GBX 400 to GBX 350 and set an “underweight” rating for the company in a research report on Wednesday, April 15th. Citigroup lowered their target price on shares of easyJet from GBX 500 to GBX 490 and set a “neutral” rating for the company in a research note on Monday, February 2nd. Finally, UBS Group reaffirmed a “buy” rating and issued a GBX 635 price target on shares of easyJet in a research note on Monday. Five investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of GBX 551.43.

About easyJet

We are a low-cost, European, point-to-point airline. We use our?cost advantage, operational efficiency and leading positions in primary airports to deliver low fares for our customers – making great value travel accessible for everyone. We aim to?provide simple, convenient travel and holidays at a competitive price with outstanding customer service. easyJet is one of the largest airlines in the world, with 347 aircraft, operating 1,099 routes across 35 countries and 160 airports.