easyJet: narrows full-year guidance; shares down.
(CercleFinance.com) - British low-cost airline easyJet on Friday narrowed its full-year guidance, which failed to impress investors and sent the shares down by about 1% in London this morning.
The company said it now expects headline pre-tax profit to be between 405 million and 410 million pounds for the year to 30 September 2017, at the upper end of its previously guidance range.
Until now, easyJet said it was expecting pre-tax profit of between 380 million pounds and 420 million pounds.
Analysts at Liberum - who have a "sell" rating on the shares - don't seem to be impressed by the announcement.
"Guidance is only marginally above consensus (Bloomberg: 402 million pounds) and below our estimate (419 million pounds)", the brokerage firm points out in a research note this morning.
"We believe the market has been pricing in a better outturn", it added.
Indeed, Carolyn McCall, easyJet chief executive, acknowledged that the market continues to be "challenging," despite passenger numbers and load factor reaching new highs in the final quarter of the past fiscal year.
Listed on the London Stock Exchange, the shares were down 1% at 1,272 pence after the trading update.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The company said it now expects headline pre-tax profit to be between 405 million and 410 million pounds for the year to 30 September 2017, at the upper end of its previously guidance range.
Until now, easyJet said it was expecting pre-tax profit of between 380 million pounds and 420 million pounds.
Analysts at Liberum - who have a "sell" rating on the shares - don't seem to be impressed by the announcement.
"Guidance is only marginally above consensus (Bloomberg: 402 million pounds) and below our estimate (419 million pounds)", the brokerage firm points out in a research note this morning.
"We believe the market has been pricing in a better outturn", it added.
Indeed, Carolyn McCall, easyJet chief executive, acknowledged that the market continues to be "challenging," despite passenger numbers and load factor reaching new highs in the final quarter of the past fiscal year.
Listed on the London Stock Exchange, the shares were down 1% at 1,272 pence after the trading update.
Copyright (c) 2017 CercleFinance.com. All rights reserved.