TUI AG's (LSE:TUI) full-year results next week with trends in travel and holidays still encouraging according to rivals and analysts.
Matt Britzman, senior equity analyst, at Hargreaves Lansdown notes: “TUI has already offered a sunny outlook ahead of its fourth-quarter results next week, thanks to its upbeat trading statement in late September.
“Profits are expected to rise by at least 25%, a figure that might even prove to be modest.
“The Markets and Airlines segments have been flying high this summer, buoyed by strong bookings and rising average selling prices. E
“Encouragingly, that momentum seems to have carried into the winter season, with leisure spending still a top priority for consumers despite economic headwinds.”
UBS is predicting revenues of €22.8 billion, underlying profit (EBIT) of €1.3 billion and free cash flow (FCF) of €200 million.
“If TUI would guide for a more meaningful pick up in FcF y/y we expect to see a positive reaction Into the event we believe the risk-reward is skewed to the upside.”