easyJet (LON:EZJ) Posts Earnings Results

easyJet (LON:EZJ) announced its earnings results on Thursday. The company reported GBX (50.10) earnings per share for the quarter, Digital Look Earnings reports. easyJet had a return on equity of 11.57% and a net margin of 3.93%.The firm had revenue of GBX 395 million for the quarter.

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 Stock Up 5.7%

Shares of LON:EZJ opened at GBX 370.20 on Friday. The firm has a market cap of £2.77 billion, a P/E ratio of 5.72, a P/E/G ratio of 0.59 and a beta of 2.11. The company has a quick ratio of 1.09, a current ratio of 1.10 and a debt-to-equity ratio of 82.36. easyJet has a 12-month low of GBX 332.60 and a 12-month high of GBX 590.60. The business has a fifty day simple moving average of GBX 362.81 and a 200 day simple moving average of GBX 439.87.

Analyst Ratings Changes

A number of equities analysts have commented on EZJ shares. Royal Bank Of Canada lowered their price objective on easyJet from GBX 415 to GBX 405 and set an “outperform” rating on the stock in a research note on Friday. Citigroup cut their price objective on easyJet from GBX 500 to GBX 490 and set a “neutral” rating on the stock in a report on Monday, February 2nd. Deutsche Bank Aktiengesellschaft cut their price objective on easyJet from GBX 465 to GBX 340 and set a “sell” rating on the stock in a report on Thursday, March 19th. UBS Group reissued a “buy” rating and set a GBX 635 price objective on shares of easyJet in a report on Monday, May 18th. Finally, JPMorgan Chase & Co. cut their price objective on easyJet from GBX 400 to GBX 350 and set an “underweight” rating on the stock in a report on Wednesday, April 15th. Five analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of GBX 550.

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.