Experienced Investor
Stock of the week: easyJet
British low-cost airline easyJet has predicted its full year profits are set to soar following an encouraging third quarter trading update this week. The report showed a robust performance with revenue up 14% to £1.6bn and a 9.3% increase in passenger numbers.
Shares lifted off following the news, enjoying a near 4% jump in response. However, the sustained action by air traffic controllers in France and Italy was a major factor behind the cancellation of 2,600 flights in the period, along with severe weather, which all combined to impact on revenue.
The company is reported to be preparing to make a formal protest to the European Commission about the industrial action next week. The group raised its full-year profit guidance range from £530-£580m to £550-£590m although costs per seat are expected to rise a little faster than previously thought.
The update indicated a strong performance by easyJet in the face of significant external challenges and the raising of profit guidance clearly pleased the market with the shares up 3% in early trading.
The 11.5% increase in ancillary revenue, which includes passengers choosing allocated seating and adding bags, was especially positive news.
We continue to recommend the shares as a ‘buy’ for medium risk investors as the company has good momentum with its trading, a relatively strong balance sheet and a number of opportunities for further growth, although the regular industrial action in France is clearly hampering progress.
There are 0 Comment(s)
Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?
Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...
Is now the time to fix your energy deal?
Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...
Everything you need to know about the pension triple lock
Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...
What will happen if rates change
How your finances will be impacted by a rise in interest rates.
Regular Savings Calculator
Small regular contributions can build up nicely over time.
Online Savings Calculator
Work out how your online savings can build over time.
The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts
A number of banks are luring in new student customers with cold hard cash this year – while others are compe...
DIY investors: 10 common mistakes to avoid
For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.
Mortgage down-valuations: Tips to avoid pulling out of a house sale
Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?
Money Tips of the Week
© AE3 Media Ltd, 21 Great Winchester Street, London EC2N 2JA, Company.