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easyJet’s H1 update looked good with in-line results (preliminary figures were communicated earlier), strong pricing power and improved hedging positions. No financial guidance was provided as this is a highly uncertain exercise in the current economic context. We however expect an increase in the consensus.
Companies: easyJet plc
Despite no further surprise in terms of the H2 capacity outlook, easyJet’s H1 trading update pleased the market with a better-than-expected pre-tax headline loss. It is worth highlighting the group’s more-than-robust pricing power, which is expected to largely offset the unhedged fuel costs and the recent activities disruptions/cancellations at UK airports.
The market reacted positively to the group’s Q1 results, as the slightly weaker-than-expected traffic figures were more than offset by the strong pricing. The fading away Omicron impacts and the progressive lifting of travel curbs in many European countries, especially in the UK, are hoped to drive an earlier normalisation of operations. The Q2 traffic projection is only slightly lower than the pre-Omicron schedule and the year-end projection remains unchanged to approach its pre-crisis level.
easyJet’s FY21 results correspond to the market’s anticipations as the preliminary figures were communicated previously. Despite the worsening COVID-19 situation in Europe, the group seems upbeat on its capacity forecast for the next FY. Too early to judge whether it is too optimistic as all depends upon the development of the new Omicron variant.
easyJet’s Q4 21 results were seemingly stronger than analysts’ expectations and the group upgraded its capacity schedule for Q1 22. As the COVID-19 border restrictions in the UK are lifting, a good trading performance has been seen in the past two weeks. We expect the consensus to be raised.
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easyJet has turned down an unsolicited preliminary takeover approach and proposed a rights issue of £1.2bn, representing one third of its current market cap, to strengthen its financial positions and support potential long-term strategic investments. The renewed guidance for the short term is broadly in line with its last update.
The veteran senior management Stephen Hester will succeed John Barton as easyJet’s new chair in December and the market applauds his arrival due to his experienced skills in corporate turnarounds. The share is up by 2%.
easyJet’s released its Q3 results, which were in line with management’s expectations. However, the Q4 performance is now expected to be limited further by the new waves of the pandemic and the increasing travel restrictions in Europe. The hope of a meaningful summer rebound is fading away for the whole intra-European travel sector.
Following the release of the preliminary figures in April, easyJet’s release of its H1 results did not provide much unexpected information, except for the downgraded Q3 forecast. Its liquidity position and cash burn rate remain comfortable. Now all depends on a potential summer rebound, which will hopefully be unlocked by the speeding up of the vaccination roll-outs in Europe.
easyJet has released its H1 results, which were slightly better than analysts’ average expectations. Its solid liquidity position and improved cash burn rate should also encourage the market.
easyJet’s Q1 performance was largely hit by travel restrictions in Europe and the situation is expected to be worse in the next quarter. Nevertheless, the market was persuaded by the airline’s current liquidity position which could allow a survival of more than 14 months even in a fully-grounded scenario.
The UK-based low-cost carrier easyJet reported a pre-tax loss of £1.27bn in FY20. Funding needs seem to have been fulfilled to allow the wait for the plausible surge in demand next summer, despite the mediocre improvement in cash burn.
Research Tree provides access to ongoing research coverage, media content and regulatory news on easyJet plc. We currently have 243 research reports from 7 professional analysts.
Weekly round-up of AIM-listed healthcare news. Venture Life Group, GENinCode, Kromek, Alliance Pharma, Polarean Imaging, Benchmark Holdings, Ondine Biomedical, Verici Dx, Faron Pharmaceuticals, Avacta Group, Abingdon Health, Open Orphan, Belluscura, Hutchmed (China), Oxford Biodynamics
Companies: ANIC RUA CREO GENI HEIQ IHC IXI IUG OPTI SBTX VAL VLG
Companies: Best of the Best plc
Dish of the day Joiners: No Joiners Today. Leavers: No leavers Today. What’s cooking in the IPO kitchen? EnSilica, intends to join AIM. EnSilica is a designer and supplier of mixed signal Application Specific Integrated Circuits (ASICs). ASICs are integrated circuits or semiconductor chips developed for a particular use or product rather than for general purpose usage. ASICs help differentiate products through optimised hardware thereby making products smaller, faster, lower power and more
Companies: XTR XLM VRS SUP ROCK SLE SEMP OHG HDD FIH
Companies: Vertu Motors PLC
Companies: Marks and Spencer Group plc
Dish of the day Joiners: Lekoil, the oil and gas exploration and production Company with a focus on Nigeria and West Africa has joined the Access Segment of the AQSE Growth Market. The Company was previously listed on AIM (LEK.L), however, Ordinary Shares have been suspended from trading on AIM since October 2021. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Psych Capital PLC, intends to list on the AQSE Growth Market. Psych operates the Psych Platform (a business-to-business ne
Companies: CZA AXL AEE CORA D4T4 EKF ORPH PWM PPH SYM
Despite the various challenges (Covid restrictions, Brexit, supply chain disruption), FY’22 results were slightly ahead of upgraded expectations. The angling market is not immune to the well-documented headwinds but, with numerous strategic initiatives strengthening its capabilities, including the recent launch of its EU DC, Angling Direct is cautiously optimistic about the scope to deliver market share gains and begin a new growth phase in Europe. Forecasts have been maintained and valuation is
Companies: Angling Direct Plc
Companies: Tortilla Mexican Grill Ltd.
Joiners: Ajax Resources (AJAX.L) a special purpose acquisition company established to deliver shareholder value through the acquisition of businesses or production and development assets in the energy and natural resources sector, joins the Main Market. Raising gross proceeds of £1,342,000 at a price of £0.04p per IPO Share, of which the Board of Directors has invested an aggregated amount of £130k. Leavers: No leavers today. What’s cooking in the IPO kitchen? Financials Acquisition Corp, a spec
Companies: SEMP ACC BLU CAML IPX MAST MKA SDX AFC BOKU
M&B’s H1 FY21/22 performance was below our expectations. Although the Q2 lfl sales remained healthy, profitability suffered due to inflationary cost headwinds. The volume decline was more than offset by premiumisation and an increased spend per person. While M&B’s market outperformance is likely to continue, we expect the margin pressure to increase further, especially in the near-term. We will trim our financial estimates but maintain our positive stance based on the stock’s valuation.
Companies: Mitchells & Butlers plc
CVS Health entered 2022 with solid momentum and had a great first quarter. The company increased revenue by over 11% to $76.8 billion and adjusted operating income by nearly 7% to $4.5 billion. They increased memberships whereas the medical costs are in line with projections despite inflationary pressures. These results reflect their diverse product portfolio, in-depth knowledge of consumer health needs, and superior customer service. During the first quarter of 2022, CVS Health distributed over
Companies: CVS Health (CVS:NYSE)CVS Health Corporation (CVS:NYS)
Guild Esports appears positioned to accelerate audience growth and sponsorship revenues as its teams gain momentum and David Beckham increases promotional activity. Guild released results for the year ended 30 September 2020, which was pre-revenue and before IPO funding. Post period end, the company signed a three-year £3.6m sponsorship deal and a smaller two-year sponsorship deal.
Companies: Guild Esports PLC
REACT Group plc (REACT), a leader in the specialist cleaning, decontamination and hygiene sector, has reported full year results to September 2021 which shows strong year-on-year growth, generated from both the core REACT business and the earnings enhancing acquisition of Fidelis. In line with its strategic focus, the majority of Group revenues are now under multi-year contracts providing good revenues visibility and this focus is expected to continue both organically and from targeted earnings
Companies: REACT Group Plc
Netflix had a mediocre quarter with 8.3 million subscriber additions, around 200k below the market expectations which resulted in a heavy correction in the stock price. The management forecasts 2.5 million paid net adds in Q1 along healthy retention with churn down, increased viewing time, and engagement. User acquisition has been growing a little slower than pre-COVID levels and the company is releasing many new originals with the objective of creating more and more global phenomena like ‘Squid
Companies: NETFLIX (NFLX:NYSE)Netflix, Inc. (NFLX:NAS)
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