easyJet (LON:EZJ) Issues Quarterly Earnings Results

easyJet (LON:EZJ) posted its quarterly earnings data 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 16.07% and a net margin of 4.89%.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 Price Performance

easyJet stock opened at GBX 343.10 on Thursday. The company has a market capitalization of £2.56 billion, a price-to-earnings ratio of 5.30, a PEG ratio of 0.59 and a beta of 1.71. 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 stock’s 50 day moving average is GBX 364.44 and its 200-day moving average is GBX 441.31.

Analyst Upgrades and Downgrades

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