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

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Ryanair Holdings (RYAAY - Free Report) is scheduled to report fourth-quarter fiscal 2022 (ended Mar 31, 2022) financial numbers on May 16.

The company has a dull earnings surprise history, having outperformed the Zacks Consensus Estimate in only one of the preceding four quarters while missing the same in the other three.

Let’s see how things are shaping up for Ryanair this earnings season.

Factors to Note

Improved air-travel demand in Europe is likely to have driven Ryanair’s top line in the fourth quarter of fiscal 2022. Uptick in traffic is expected to have boosted scheduled revenues in the quarter. Ancillary revenues are also expected to reflect significant year-over-year improvement owing to strong performance in priority boarding and reserved seating.

However, with air-travel demand continuing to be below the pre-pandemic levels, Ryanair’s fiscal fourth-quarter performance is likely to reflect softness compared with the 2019 level.

Additionally, escalating fuel prices amid the Russia-Ukraine war are likely to have dented the carrier’s bottom line in the to-be-reported 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

What the Zacks Model Unveils

The proven Zacks model predicts 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 chances of beating estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Ryanair has an Earnings ESP of +2.70% as the Most Accurate Estimate is pegged at a loss of $1.08, narrower than the Zacks Consensus Estimate of a loss of $1.11. 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 #3.

Highlights of Q3 Earnings

Ryanair incurred a loss of 48 cents per share in the third quarter of fiscal 2022 (ended Dec 31, 2021), wider than the Zacks Consensus Estimate by a penny. Results were hurt by Omicron-induced travel restrictions in December. Quarterly revenues of $1,681.1 million fell short of the Zacks Consensus Estimate of $1,792.2 million but increased more than 400% from the year-ago period, with significant improvement in traffic owing to strong bookings in October and November.

Earnings Snapshots

Within the Zacks Airline industry, Copa Holdings (CPA - Free Report) , Azul (AZUL - Free Report) and Gol Linhas Aereas Inteligentes (GOL - Free Report) recently reported first-quarter 2022 earnings numbers.

Copa Holdings, carrying a Zacks Rank #3, reported first-quarter 2022 earnings (excluding 23 cents from non-recurring items) of 70 cents per share, which surpassed the Zacks Consensus Estimate of 36 cents. In the year-ago quarter, the company had incurred a loss of $2.23 per share due to coronavirus-led depressed air-travel demand.

Copa Holdings’ quarterly revenues of $571.6 million outperformed the Zacks Consensus Estimate of $566.1 million and rose significantly year over year, thanks to an improvement in air-travel demand.

Azul, carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $4.89 from non-recurring items) of $1.14 per share in the first quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of $1.21. The amount of loss narrowed year over year as well.

Azul’s total revenues of $610.9 million missed the Zacks Consensus Estimate of $638.5 million but increased 82.9% year over year as air-travel demand improved, courtesy of widespread vaccination programs in Brazil.  

Gol Linhas, carrying a Zacks Rank #3, incurred a loss (excluding $3.15 from non-recurring items) of 63 cents per share in the first quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of 67 cents. The amount of loss has narrowed year over year.

Gol Linhas’ net operating revenues of $616.2 million outperformed the Zacks Consensus Estimate of $603.2 million. The top line not only surged more than 100% year over year, but also came in above the first quarter of 2019.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.