Brand recognition is a significant factor when it comes to share price and here eazyjet lags Ryanair by some distance , it's unlikely to ever have a higher PE than Ryanair
I see the Chief Exec has just exercise options on 130,000 shares and another director on 150,000 - and then sold immediately (at £12 a time profit). Nice for them, but probably won't help the share price
Questor has EZJ as hold - 19/11/14
From today's Daily Telegraph Questor column: http://www.telegraph.co.uk/finance/markets/questor/11239434/Questor-share-tip-Hold-easyJet-as-profits-jump.html
FT on Easyjet
Up in the air: In response to easyJet’s 22 % rise in pretax profit for the year to end-September, the shares dipped slightly, before closing almost unchanged at £15.25. By contrast, Ryanair’s shares rose 8 % on the day it raised its guidance for the current year by up to 20 %. What is more surprising is that some analysts have easyJet at a discount to Ryanair, on forward p/e ratios of about 12 and 14 respectively. In terms of load factor – seats filled as a proportion of those available – easyJet has already achieved the 90 % that is for Ryanair still a target; and easyJet’s wooing of lucrative business customers is also farther advanced than Ryanair’s charm offensive. The non-appearance of a second successive special dividend may have disappointed some investors. Others will have noted that easyJet’s outlook includes cost per seat inflation of 2 %, alongside a 5 % increase in capacity. It improved on last year’s cost estimate – the out-turn was a rise of just 0.6 % – and might yet do so again. But for now, the company’s caution is reflected in the muted share price reaction.
RE: special divi
McCall told analysts during this morning's conference call that "a special dividend remains under conilsideration...."
RE: special divi
Yes - the dividend policy is to distribute 40% of after-tax profits, and that has presumably all gone on the ordinary divi. Profit before tax up 21%, but divi up 35.5%
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