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Ryanair (RYAAY) to Report Q4 Earnings: What's in Store?

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Ryanair Holdings (RYAAY - Free Report) is scheduled to release fourth-quarter fiscal 2021 results on May 17.

Due to the coronavirus-induced declining passenger revenues, this European low-cost carrier suffered a loss in each of the last four quarters. However, the loss was narrower than the Zacks Consensus Estimate in each quarter.

Ryanair Holdings PLC Price and EPS Surprise

Ryanair Holdings PLC Price and EPS Surprise

Ryanair Holdings PLC price-eps-surprise | Ryanair Holdings PLC Quote

Moreover, the Zacks Consensus Estimate for the to-be-reported quarter’s loss has narrowed to $1.65 from $2.20, 60 days ago.

Against this backdrop, let’s examine the factors that are likely to have impacted the company’s performance in the fiscal fourth quarter.

Akin to the last few quarters, we expect Ryanair’s performance in the to-be-reported quarter to have been affected by low passenger revenues on a year-over-year basis. The resurgence of coronavirus cases in some parts of Europe worsened the already weak travel-demand scenario, which is likely to get reflected in the to-be-reported results.

Slow vaccine rollout in the European Union is also likely to have hurt traffic, which in turn, might have dented passenger revenues. Additionally, as a result of dismal traffic, load factor (% of seats filled with passengers) is likely to have declined year over year in the to-be-reported quarter.

However, Ryanair’s efforts to cut costs in the face of dwindling passenger revenues are expected to have aided its bottom-line performance in the fiscal fourth-quarter. 

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Ryanair this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise, which is not the case here as shown below. You can see  the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Ryanair has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of a loss of $1.65. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Ryanair carries a Zacks Rank #5 (Strong Sell), currently.

Highlights of Q3 Earnings

Ryanair incurred a loss (excluding 8 cents from non-recurring items) of $1.62 per share in the third quarter of fiscal 2021 (ended Dec 31, 2020), narrower than the Zacks Consensus Estimate of a loss of $1.95. Meanwhile, in the year-ago period, the company reported earnings of 43 cents per share. Results reflect coronavirus-induced disruptions in air-travel demand.

Quarterly revenues of $406.9 million lagged the Zacks Consensus Estimate of $495 million. Moreover, the top line plunged 80.7% year over year due to a massive decline in traffic.

Snapshots of Sectorial Releases

Even though the transportation stocks have persistently grappled with the coronavirus-induced issues this reporting cycle so far, the bottom-line results of a few companies surpassed estimates. Below we present three such outperformers.

Landstar System ((LSTR - Free Report) ) reported earnings of $2.01 per share, surpassing the Zacks Consensus Estimate of $1.61. Additionally, revenues of $1,287.5 million outperformed the Zacks Consensus Estimate of $1,142.5 million.

Norfolk Southern Corporation’s (NSC - Free Report) earnings of $2.66 per share surpassed the Zacks Consensus Estimate of $2.55. Moreover, the bottom line improved 3.1% year over year on lower costs.

Triton International Limited’s (TRTN - Free Report) earnings (excluding 1 cent from non-recurring items) of $1.91 per share surpassed the Zacks Consensus Estimate of $1.70. Moreover, the bottom line surged 105.4% year over year owing to strong trade volumes and container demand.

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