Blueoxo22
24 Jan 2017
Competition I needed to book a flight from London Luton to Amsterdam. My first port of call was Easyjet with a return cost of about £135 (including a bag), which I thought was quite reasonable for 2 weeks notice..I was then advised to check Vueling. After the 'who are they' discussion I went online and booked the same route, same days for £42.75. Without hold baggage that would of been only £19.30 return. Want fully flexible tickets... that's a mere £6.77 extraHard to make decent profit with so many low cost alternatives around....
Baker2005
24 Jan 2017
Re: Results good share drops The £105M stirling hit will be more than balanced out by the fuel hedging gain: "On a full year basis it is estimated that at current exchange rates and with jet fuel within a $520 metric tonne to $600 metric tonne trading range, easyJet's unit fuel bill for the 12 months ending 30 September 2017 is likely to decrease by between £215 million and £240 million compared to the 12 months to 30 September 2016."
Akis1999
24 Jan 2017
Re: Results good share drops I think revenues will be down this year with competition, increasing fuel prices, the 100ml due to weaker sterling. On the current 427ml bottom line profit and todays price it's trading at 9 multiples. But considering I'd say a 300ml for 2017, it jumps up to 13 multiples. Maybe still a bit too expensive ?
Steve Gurr
24 Jan 2017
Re: Results good share drops Short answer - driving........................... seat revenue is the issue.Too much LCC competition driving fares down, some Monarch flights are only half full which will drive prices even lower. How much profit can you make charging £5 to Malaga?There will be a LCC casualty, it won't be EZJ, and the sooner the better for EZJ.
Hardboy
24 Jan 2017
Re: Results good share drops Akis,1. I too thought the figures were OK. I guess markets are concentrating on declining income per seat. . The business is highly competitive, and reducing margins (which is what we are talking about) means planes need to fly fuller to make a profit. Some analysts who don't understand enough say the load factor is down which is bad. That's not true. If passenger numbers are steadily increasing, load factor will too as long as you have the same capacity. But as passenger numbers increase you have to increase capacity, which is a step change. As soon as capacity is increased load factor drops. It's a shame that people who don't understand this simple concept get taken notice of. 2. As for the leaseback. It's not necessarily a problem. either model can work - own and operate your own planes or lease someone else's planes. The former model, if run properly should probably be more profitable in the long run. It increases capital costs and assets, but decreases operating costs. The latter gives better cash flow.
Akis1999
24 Jan 2017
Results good share drops I bought a trance for my son before Christmas at 982.82 and was cursing myself for not buying in for me too seeing the price slipping away higher and higher.Results out today looking good, but down on share price, waiting for reports as to why.From the statement I really do not like one paragraph at all:"EasyJet also entered into a sale and leaseback arrangement for 10 A319 aircrafts, which generated $144m. Due to the age of the selected aircraft and related maintenance provision, the company incurred a one-off £16m charge, which was slightly favourable to the £20m expected."OK now this sucks. The company which got the deal will have their own staff and will all want to make a profit. Where is this profit going to come from ? It does not compute and looks like a very poor decision like the Nuclear Reactors with France and China. Very poor management decisions not to go any further and suggest back handers and corruption.
Akis1999
11 Jan 2017
Re: Dividends The overall effect is meaningful if the company buys and cancels a lot of shares to make an impact to the open market share price.However Mr Market typically has his own ideas about a share price, so a subsequent share price rise is not guaranteed.Companies issue new shares all the time, to cash in options given to employees, convertibles etc, it is an ongoing process.Other things being equal, a share buyback scheme ought to raise the share price by an equivalent amount, thus this is seen as "returning value to the share holder".It is of course a joke and benefits only those shareholders who are wishing to sell (eg directors cashing in their options)! Those that do sell some of their shares in order to realise the "value", will receive fewer dividends the following years to come.A scam if we have ever seen one.
Nogger2
10 Jan 2017
BuyBack PMP - is this the something you are missing - if earnings are constant, then the fact that there are a reduced number of shares in circulation means that the P/E reduces (because EPS increases), This then makes the shares look cheaper, resulting in an increase in share price.In effect, you are swapping a dividend payment for an increased value in you holding.Nogger
Pad Mc Pad
10 Jan 2017
Re: Dividends "Akis the buyback I meant was one where the company buys stock on the open market (not forced sales from shareholders), and then cancels them, so your own pot is worth a little more, being a higher % of the overall stock issued"If the company say pays £10 for one share and then cancels it the overall effect is nothing; The company is now worth £10 less (£10 spent on buying share) but there is one less share in circulation (so company is worth £10 more). Or am I missing something?
Marcus Ponds
09 Jan 2017
Re: Dividends Akis the buyback I meant was one where the company buys stock on the open market (not forced sales from shareholders), and then cancels them, so your own pot is worth a little more, being a higher % of the overall stock issued. I'm not saying this is the best or only way to give value to shareholders, but let's not connect it with underhand practise. I have had one stock of this nature for 15 years, a company turning over £300m at the time - no dividends obviously but a 40 fold increase in share value.
Rhigos
09 Jan 2017
Re: Dividends axel27,There are good and bad share buybacks. If it is done because they can think of nothing better to do with spare cash and do it when SP is higher than normal, then bad. Also bad if only a small percentage of shares bought back exception being if shares part of management incentive scheme so not cancelled. Doing buybacks to increase EPS to boost management bonuses based on EPS targets obviously bad.It is my assertion that NXT buybacks have been good for shareholders over the long term. The recent fall in SP is nothing to do with buybacks but rather tough trading conditions not helped by weak pound pushing up cost of clothes in terms of pounds in which a lot of their profits are made.
axel27
09 Jan 2017
Re: Dividends Dividends go to shareholdersShare price increase goes to shareholders and option holders.It is not hard to wonder why management recommends share buy backs.
Hardboy
09 Jan 2017
Beaufort Securities' View easyJet (EZJ.L, 1,059.00p) – BuyeasyJet, a low-cost European short-haul airline company, on Friday released its passenger statistics for December 2016. During the month, passenger traffic increased by +15.1% y-o-y to 5,579,978, while load factor rose by +3.3% to 89.9%. On a rolling basis for the past 12 months, passenger traffic grew +6.6% to 74.5 million customers and the load factor declined by -0.1% to 91.5%. Passenger traffic represents the number of earned seats flown while load factor represents the number of passengers as a proportion of the number of seats available for passengers.Our view: easyJet delivered strong y-o-y passenger growth in December with load factor returning to positive growth. Although December's strong statistics were helped by a relatively weaker comparative (against December 2015 vs December 2014), where passengers traffic increased by only +4.6% and load factor fell by -1.8%. In November, easyJet announced resilient preliminary results for the FY2016, in which it delivered -0.4% declined in revenue, -27.9% fall in pre-tax profit and -21.9% drop in basic earnings per share, in line with guidance during a period that was significantly disruptive for the entire industry. The Group registered record passenger numbers and load factor in the FY2017, while delivering a strong balance sheet at the period-end despite increasing its dividend pay-out ratio to 50%. While keeping one careful eye on the oil price and economic/political uncertainties, Beaufort retains its Buy rating on the shares based on a FY2017E earnings multiple of 12.1x and 4.1% yield.
Hardboy
09 Jan 2017
Re: Dividends I've got mixed views on buy backs, but if a company pays the same amount in total in dividends each year, and they have a share buy back project, then the dividend per share increases, so the owners do get more.
Inatthetop
06 Jan 2017
Re: SP following passenger stats This happens with almost every share in my portfolio. Leaks of imminent good news get around very quickly and far too often. Hence it looks as if the market hasn't reacted when the RNS is released.
