Analysis of easyJet's Q3 earnings: Key points for investors to focus on
easyJet, the British airline known for its low-cost flights, is set to release its Q3 financial figures on Thursday, and expectations are running high. Here's a rundown of the key forecasts and trends to watch for:
According to analyst estimates, easyJet is projected to post a Q3 headline pre-tax profit (PBT) of £262 million, marking an 11.0% boost compared to the same period last year. The airline's ASK (Available Seat Kilometres) in Q3 is expected to be 6.2% higher at 37.3 million KM.
In terms of revenue, easyJet estimates passenger revenue growth of 5.6% to £1.69 billion in Q3, with easyJet Holidays revenue forecasted to grow by 27.7% to £429 million. The airline also projects ancillary revenue growth of 4.3% to £723 million in Q3.
The airline's non-fuel CASK (Cost per Available Seat Kilometre) is projected to decrease slightly to 4.23p from 4.29p, while passenger RASK (Revenue per Available Seat Kilometre) for easyJet in H1 fell 6.3% to 3.88p. However, ancillary RASK is expected to remain neutral at 2.20p in Q3.
Net finance costs are expected to edged a tinge higher from an increase in leased aircraft payments, a bigger Holidays asset pool yielding higher finance income, offset slightly by lower interest rates. The total cost base excluding fuel is estimated to rise to £1.73 billion due to higher fees from airport and ground handling, crew, navigation, and maintenance. Headline depreciation and amortisation is likely to head higher to £204 million, due to investments in tech and infrastructure and a higher percentage of owned aircraft in the fleet.
However, easyJet's fuel CASK in Q3 is expected to see a slight pullback (1.73p vs 1.78p). It's important to note that these forecasts are subject to change, and investors should look out for hints on the fuel CASK guidance, as a reiteration of the 8.0% figure could send the stock rebounding.
Investors should also keep an eye on CEO Kenton Jarvis's comments during the earnings call. If he doesn't reiterate his FY25 PBT guidance of roughly £700-710 million, easyJet's share price could descend. Additionally, easyJet's medium-term EPS numbers have been reworked to reflect a more conservative outlook, with the EPS CAGR through to FY27 slowing slightly to 15.6% from a previous 16.4%.
To find the expected RASK for easyJet's Q3 report, investors can check the company's quarterly financial reports, look for analyst estimates, compare easyJet's historical RASK with industry averages, or keep an eye on stock market news and updates from reputable financial news outlets.
The financial analysts anticipate easyJet's Q3 headline pre-tax profit to increase by 11.0% to £262 million, and its ASK to rise by 6.2% to 37.3 million KM. Moreover, investing in easyJet's stocks could be influenced by the fuel CASK guidance in the Q3 report, as a reiteration of the 8.0% figure could potentially cause the stock to rebound.
