easyJet (LON:EZJ) Posts Quarterly Earnings Results

easyJet (LON:EZJ) released its quarterly earnings data on Thursday. The company reported GBX (50.10) EPS for the quarter, Digital Look Earnings reports. easyJet had a net margin of 4.89% and a return on equity of 16.07%. The company 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 0.7%

Shares of LON:EZJ opened at GBX 352.80 on Friday. The company has a current ratio of 1.11, a quick ratio of 1.09 and a debt-to-equity ratio of 83.65. easyJet has a 12 month low of GBX 332.60 and a 12 month high of GBX 590.60. The company has a 50-day moving average price of GBX 363.36 and a 200 day moving average price of GBX 440.36. The company has a market cap of £2.64 billion, a price-to-earnings ratio of 5.45, a PEG ratio of 0.59 and a beta of 1.71.

Analysts Set New Price Targets

Several research analysts have commented on EZJ shares. Royal Bank Of Canada dropped their price objective on shares of easyJet from GBX 440 to GBX 415 and set an “outperform” rating for the company in a report on Friday, April 17th. Deutsche Bank Aktiengesellschaft dropped their price objective on shares of easyJet from GBX 465 to GBX 340 and set a “sell” rating for the company 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. JPMorgan Chase & Co. dropped their price objective on shares of easyJet from GBX 400 to GBX 350 and set an “underweight” rating for the company in a report on Wednesday, April 15th. Finally, Citigroup dropped their price objective on shares of easyJet from GBX 500 to GBX 490 and set a “neutral” rating for the company in a report on Monday, February 2nd. Five equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, easyJet has an average 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.