Jet2 (LON:JET2) Releases Earnings Results

Jet2 (LON:JET2) announced its quarterly earnings data on Wednesday. The company reported GBX 211.20 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Jet2 had a net margin of 5.49% and a return on equity of 19.92%.

Jet2 Trading Up 2.8%

Shares of JET2 opened at GBX 1,485.95 on Friday. Jet2 has a 12 month low of GBX 980 and a 12 month high of GBX 1,748. The stock’s 50-day moving average is GBX 1,227.38 and its two-hundred day moving average is GBX 1,233.12. The company has a debt-to-equity ratio of 14.00, a current ratio of 1.36 and a quick ratio of 1.49. The stock has a market cap of £2.69 billion, a PE ratio of 6.34, a P/E/G ratio of 9.34 and a beta of 1.46.

Jet2 declared that its Board of Directors has approved a share buyback program on Wednesday, July 8th that authorizes the company to buyback 0 outstanding shares. This buyback authorization authorizes the company to buy shares of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on JET2. Deutsche Bank Aktiengesellschaft cut their price target on Jet2 from GBX 1,596 to GBX 1,457 and set a “buy” rating for the company in a report on Friday, March 20th. Royal Bank Of Canada raised their price objective on Jet2 from GBX 1,800 to GBX 1,900 and gave the stock an “outperform” rating in a report on Thursday. UBS Group reaffirmed a “buy” rating and issued a GBX 1,660 price objective on shares of Jet2 in a research report on Friday, July 3rd. Jefferies Financial Group reiterated a “buy” rating and set a GBX 1,800 target price on shares of Jet2 in a research report on Wednesday, April 29th. Finally, Canaccord Genuity Group decreased their price target on Jet2 from GBX 1,900 to GBX 1,750 and set a “buy” rating on the stock in a research note on Wednesday. Six analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, Jet2 presently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 1,638.14.

Key Headlines Impacting Jet2

Here are the key news stories impacting Jet2 this week:

• Positive Sentiment: Jet2 announced a £250 million share buyback program, a move that signals confidence from management and can support earnings per share by reducing share count. Jet2 Launches 250 Million Share Buyback Programme
• Positive Sentiment: Jet2 also reported record passenger volumes and record revenues, while highlighting strong summer demand and continued booking momentum, which points to healthy near-term trading conditions. Jet2 Delivers Record Passenger Volumes and Unveils 250m Buyback Amid Gatwick Expansion
• Positive Sentiment: The company said summer bookings rose 7% as Middle East tensions eased, suggesting demand has improved as geopolitical uncertainty has moderated. UK’s Jet2 says summer bookings rise 7% as Middle East tensions ease
• Positive Sentiment: Royal Bank of Canada raised its price target on Jet2 to GBX 1,900 and kept an outperform rating, reinforcing the view that the shares still have upside. Digital Look broker update
• Neutral Sentiment: Jet2 issued travel and booking updates for passengers and warned about disruption at a European airport this weekend; these appear operational in nature and are not clearly material to earnings on their own. Jet2 issues travel warning for European airport this weekend
• Neutral Sentiment: Canaccord Genuity trimmed its price target to GBX 1,750 but retained a buy rating, which is still supportive even though the target was reduced. Digital Look broker update
• Negative Sentiment: The share price may be reacting to profit-taking after a sharp run-up, as several headlines have already pointed to a strong move on improved bookings and results, leaving less room for immediate upside.

About Jet2

Jet2 plc is a leading leisure travel group, specialising in friendly low fares from its award-winning airline, Jet2.com, and package holidays you can trust from the UK’s largest package holiday provider, Jet2holidays.
Jet2.com is the UK’s third largest airline, flying from 12 UK airports to over 70 destinations across Europe and beyond and Jet2holidays is the UK’s largest tour operator.