EasyJet’s Profit Expectations to Fall After Guidance Downgrades
0817 GMT – easyJet’s guidance of lower capacity and higher costs for the second half should lead to market consensus downgrades to fiscal 2022 estimates, Citi’s Sathish Sivakumar says in a note. The current consensus for the airline is a pretax profit of GBP79 million for the year ending Sept. 30, he says. easyJet said it will lower capacity for the third and fourth quarters as its operations are being hit by supply chain challenges. In addition, the company will incur higher costs from disruption due to additional wet-leased aircraft, crew costs and airport charges, Sivakumar notes. Shares fall 2.6%. ([email protected])
Companies News:
Deliveroo Appoints Scilla Grimble as CFO
Deliveroo PLC said Monday that it has appointed Scilla Grimble as chief financial officer and that she is expected to start by no later than June 2023.
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Euromoney Institutional in GBP1.6 Bln Takeover Talks
Euromoney Institutional Investor PLC said Monday that it is in talks with a consortium comprising private equity company Astorg Asset Management S.ar.l and Epiris LLP over a potential 1.6 billion pound ($1.96 billion) takeover.
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Union Jack Oil to Report Maiden Profit in 1H
Union Jack Oil PLC said Monday that it expects to report a maiden profit for the first half of 2022.
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Rank Lowers FY 2022 Underlying Operating Profit Views on Weaker Casinos, Inflation
Rank Group PLC said Monday that it expects like-for-like underlying operating profit for fiscal 2022 to be below its previously guided range due to weaker-than-expected performance at its Grosvenor casino business and inflationary cost pressures.
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easyJet Warns on Costs, Capacity as Delays Hit Air Travel — Update
easyJet PLC warned Monday that its operating costs will be higher than expected in the second half of the year, reflecting additional leased aircraft, crew costs and airport charges.
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Kingspan Sees Record 1H Profit Despite Market Deterioration
Kingspan Group PLC said Monday that it expects to report a record profit for the first half of the year despite a market deterioration in the last two months.
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Filtronic Sees Increased FY 2022 Adjusted Ebitda on Sales Mix, Cost Control
Filtronic PLC said Monday that it expects adjusted Ebitda for fiscal 2022 to exceed market expectations after a strong second half and a strong sales mix and tight cost control.
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IOG Says Saturn Banks Gas Production Is on Track
IOG PLC said Monday that Saturn Banks production continues to be restored as expected and forecast gross gas output of between 45 million and 60 million standard cubic feet a day for the second half of 2022.
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AB Foods 3Q Revenue Rose, to Trial Click & Collect Service — Update
Associated British Foods PLC said Monday that revenue for its fiscal third quarter increased, with Primark revenue beating prepandemic levels, and said it will trial a click-and-collect service in some U.K. stores.
Market Talk:
Rank Group’s Trading Should Strengthen When Overseas Customers Return
0918 GMT – Rank Group’s earnings in fiscal 2022 and fiscal 2023 should be hit by the softer performance from its Grosvenor venues, but trading should bounce back once overseas customers return, Peel Hunt analysts say in a research note. A large minority of Grosvenor’s London revenue is made from customers who are primarily based overseas, and while a return is seen as soon as July, it is hard to predict with certainty, they say. U.K. domestic customers are also being affected by the factors that are hitting general consumer spending, the analysts say. Peel Hunt lowers its target price on the stock from 220 pence to 175 pence, but retains its buy rating. Shares are down 14% at 85.70 pence. ([email protected])
easyJet’s Reduced Summer Schedules Likely to Lead to Consensus Downgrades
0916 GMT – easyJet has reduced 3Q and 4Q capacity expectations due to staffing issues, UBS analyst Jarrod Castle says in a note. The budget airline will now fly at 87% of 2019’s volumes in 3Q and at 90% of 2019’s volumes in 4Q, versus a prior expectation of 90% and 97%, respectively. “While 3Q tickets are 86% sold and 4Q 48% sold with pricing at 2% and 14% higher, respectively, the impact of the change to schedules and disruption is likely to lead to consensus downgrades,” Castle says. Still, UBS rates the stock buy. Shares are down 2.7% at 425.40 pence. ([email protected])
AB Foods Looks Well Placed, But Consumer Pressure Looms
0908 GMT – Shares in Associated British Foods edge 0.7% higher after the retailer and food group reported higher 3Q revenue, helped by stronger pricing in ingredients, and said Primark revenue topped prepandemic levels. While the company said it would be forced to raise prices on its autumn and winter collections back in April, summer clothing demand means the impact of those potential price hikes on volumes is uncertain, Hargreaves Lansdown says. “The group is in a good position as we head into tougher economic conditions, with its lower-priced items more appealing to cash-strapped consumers, but a slowdown in consumer spending is sure to hit the entirety of the sector,” HL analyst Laura Hoy says in a note. ([email protected])
AB Foods’ Guidance Could be a Sign of Incoming Challenges
0903 GMT – AB Foods’ Primark and combined food businesses figures were positive as pandemic-related impacts are left behind, Interactive Investor’s head of markets Richard Hunter says in a research note. However, the British conglomerate leaving its full-year guidance unchanged despite higher revenue is a recognition of challenges to come, he adds. “The inevitable inflationary pressures on raw material prices, supply chain disruptions and the most recent strength in energy prices may be too much for the company to bear in price increases alone,” Hunter notes. ([email protected])
easyJet, Airline Rivals Continue to Face Turbulence
0901 GMT – Shares in easyJet fall 3% after the European budget carrier forecast higher-than-expected second-half operating costs, reflecting additional leased aircraft, crew costs and airport charges. The overall turbulence affecting the industry is continuing, Hargreaves Lansdown says. “Capacity problems affecting airlines show little sign of easing any time soon, with fresh cancellations due to baggage-handling faults now appearing on screens at Heathrow,” HL analyst Susannah Streeter says in a note. “As the easyJet update shows, the headwinds now constraining summer operations will be another delay to long-awaited recovery for the industry.” ([email protected])
Rank Group’s Disappointing Trading Update Is Likely to Affect FY 2023 Pretax Profit
0851 GMT – Rank Group published a disappointing trading update, highlighting that softer casino visitor numbers for the third quarter continued into the fourth quarter, and looking ahead to fiscal 2023, the return of higher-spending international customers over the summer will be paramount, Shore Capital research analyst Greg Johnson says in a note. The U.K. gambling company lowered its fiscal 2022 like-for-like underlying operating profit expectation to around GBP40 million due to several factors–including a slower-than-expected return of higher-spending overseas customers to London casinos–and Johnson says the U.K. investment group sees a pick up in such customers from July. The delay in returning customers is seen holding back fiscal 2023 pretax profit too, he says. Shore Capital has a buy rating on the stock. Shares trade down 13% at 86 pence. ([email protected])
Contact: London NewsPlus; [email protected]
(END) Dow Jones Newswires
June 20, 2022 05:48 ET (09:48 GMT)
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