easyJet (LON:EZJ) is expected to post a rise in profits when it updates investors on its full-year performance next week. The results will come after it emerged earlier this week that the group was interested in buying parts of struggling UK-based regional airline Flybe.
easyJet’s share price has slipped marginally into the red in London in today’s trading, having inched 0.17 percent lower to 1,165.00p as of 14:51 GMT. The shares are outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.56 percent higher at 6,998.55 points.
easyJet results preview
easyJet is scheduled to update investors on its full-year performance on Tuesday and Irish Independent reports that Numis expects the carrier to report a profit of £575 million against a profit of £408 million for the prior-year period, on revenue of £5.05 billion. The low-cost airline is further expected to book a £115-million loss from its operations at Berlin Tegel Airport in Germany.
The results will follow easyJet’s update at the end of September when the company said that it expects its full-year headline profit before tax to come in between £570 million and £580 million, at the top half of the group’s guidance range, with the blue-chip carrier having benefitted from industry turbulence and cancellations at low-cost rival Ryanair.
Irish Independent also quoted Graham Spooner, investment research analyst at The Share Centre, as commenting that investors will also be looking out for comments on fuel costs and the group’s expression of interest in troubled Italian carrier Alitalia.
Analyst ratings update
Credit Suisse reaffirmed its ‘outperform’ stance on easyJet yesterday, without specifying a price target on the shares. According to MarketBeat, the low-cost carrier currently has a consensus ‘hold’ rating and an average price target of 1,635.69p.