City analysts roundly agreed that budget airline easyJet plc’s yearly revenues came in slightly below expectations, but this was sufficiently offset by superior profit metrics.
The FTSE 100-listed carrier’s pre-tax profit soared 34% to £610 million over the year to September on the back of a 14% increase in revenue to £9.31 billion.
“Compared to our forecasts, revenue was slightly light but costs slightly better,” said Panmure Liberum, however: “Within the latter, other income was better than we had forecast.
“This includes items such as supplier compensation and the sale of surplus spare parts, so we are uncertain about the sustainability of this income.”
Panmure Liberum gave the stock a buy rating with a 660p price target.
Investment bank Jefferies called the revenue result a “small miss” but agreed that profit before tax hit the mark.
Jefferies analysts stated: “We see a re-rating opportunity as easyJet benefits from a growing package holiday business, fleet renewal and self-help opportunities through optimising winter trading and ancillaries.”
easyJet’s strong balance sheet and net cash position “leaves room for upside to dividends in the next two years”, they added.