<b>EasyJet shares rise on record August trading</b> Charles Huggins | 3 September 2015 | A A A..... Hargreaves Lansdown easyJet has released a pre-close trading update for the year ending 30 September 2015. The group enjoyed a particularly strong August, achieving a record load factor of 94.4% and record passenger numbers of 7.06 million. September is also expected to be a strong month. Consequently full year profit before tax is now expected to be in a range of £675 million to £700 million, from previous guidance of £620 million to £660 million. Carolyn McCall, easyJet Chief Executive, commented: "These figures demonstrate the strength of easyJet - with its strong customer focus and its unique and winning combination of the best route network connecting Europe's primary airports, with great value fares, friendly service and industry leading digital innovations. "This platform meant that easyJet was best placed to maximise the strong late summer demand from UK passengers to get away to beach and city destinations across Europe and will enable the airline to set new records for full year revenue and profit." The shares were 5% higher in early morning trading. <b>Our view: Hargreaves lansdown 2015 could have been a purple patch for easyJet. Europe is recovering, to a degree, fuel costs are low and consumer confidence is strong. But life is never simple, especially when you are trying to keep a couple of hundred aircraft full of passengers and moving rapidly in all directions. This year easyJet has to thank French trade unionists and (allegedly) dodgy Italian airport wiring for making 2015 anything but simple, so far. Those two escapades caused 1300 flight cancellations and required a longer term restructuring of the Italian business, after it became clear that airport capacity at Rome was going to be restricted for some time to come, after the fire. So far, easyJet seem to be making a good job of compensating for these unexpected headwinds, with the airline making the right tactical calls on pricing and marketing to deliver revenue per seat better than first expected. A strong summer season has also helped get profits back on track. We don't relish the idea of an extra six seats being squeezed into the aircraft, but moving from the smaller A319s to a fleet of A320s and especially A320neos will boost profitability through additional revenues per flight and better fuel costs. Oil prices are down and look to be staying down, with the rapprochement between Iran and the West the latest factor pushing oil prices lower. easyJet will see costs steadily falling as fuel is bought at better and better unhedged prices. Some will be competed away, but not all, we expect. easyJet is a quality operator in an industry littered with the remains of the weak and the foolhardy. Operating margins in double digits are forecast to rise from 12.7% through 15.5% by FY2017. That bodes wel
<b>Why Diageo plc, CRH PLC, PZ Cussons plc And easyJet plc Are Four Of The Hottest Growth Stocks Out There!</b> By Royston Wild - Thursday, 27 August, 2015 The Motley Fool easyJet The fallout of the 2008/2009 financial crisis on consumers’ spending habits continues to be felt, whether it be helping to fuel demand for cheap food at Aldi, cut-price togs at Primark, or bargain-basement plane tickets at easyJet (LSE: EZJ). Latest passenger data from the Luton firm showed traveller numbers flip 9.4% higher in July from a year earlier, to more than 7 million, and I expect these numbers to keep rising as the number of routes, and airports from which it operates, rise. In addition to this, easyJet has also benefitted greatly from reduced fuel costs over the past year or so. And with a worsening supply/demand balance set to keep pushing crude prices lower, I expect this to should remain supportive for some time to come. The number crunchers expect the airline to record earnings advances of 13% in the year ending September 2015, and 10% in fiscal 2016. These figures leave easyJet on ultra-low P/E readings of 12.6 times for this year and 11.4 times for 2016.
20 Aug '15
Share Price Trend
Despite the ups and downs of strikes, crashes, oil prices etc. the Easyjet shares are still on track. Have a look at the long term share chart (5years). You will see the trend from 2012 is still nicely on target and the moving averages (I use 20 and 90 day simple moving averages. The last two peaks have both come in early April: 1750 and 1900 respectively and the MAs are both looking positive. At the risk of tempting fate, I reckon a steady climb to near £20 next April. Then, unless you fancy another risky wait I'd sell.
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