easyJet (LON:EZJ) Releases Quarterly Earnings Results

easyJet (LON:EZJ) released its quarterly earnings results 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 business had revenue of GBX 395 million during 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 Performance

LON EZJ opened at GBX 343.10 on Thursday. The company has a current ratio of 1.11, a quick ratio of 1.09 and a debt-to-equity ratio of 83.65. The firm has a market capitalization of £2.56 billion, a price-to-earnings ratio of 5.30, a P/E/G ratio of 0.59 and a beta of 1.71. The firm’s 50 day simple moving average is GBX 364.44 and its 200 day simple moving average is GBX 441.31. easyJet has a 1 year low of GBX 332.60 and a 1 year high of GBX 590.60.

Analyst Upgrades and Downgrades

EZJ has been the subject of a number of recent research reports. Royal Bank Of Canada cut 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 target on shares of easyJet from GBX 465 to GBX 340 and set a “sell” rating for the company in a research report on Thursday, March 19th. UBS Group reiterated a “buy” rating and issued a GBX 635 price target on shares of easyJet in a research note on Monday. JPMorgan Chase & Co. reduced their price target on easyJet from GBX 400 to GBX 350 and set an “underweight” rating on the stock in a research report on Wednesday, April 15th. Finally, Citigroup dropped their price objective on easyJet from GBX 500 to GBX 490 and set a “neutral” rating for the company in a report on Monday, February 2nd. Five analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target 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.