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Why Ryanair (RYAAY) Stock Is Up 3.6% Since Q3 Earnings Release
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Shares of Irish carrier Ryanair Holdings (RYAAY - Free Report) are performing well following the release of its third-quarter fiscal 2023 earnings report on Jan 30. Shares have gained 3.6% since then. The upside was due to the earnings beat reported by RYAAY.
Lets delve deep into the earnings report and the guidance.
Ryanair’s third-quarter fiscal 2023 (ended Dec 31, 2022) earnings of 95 cents per share (excluding 4 cents from non-recurring items) beat the Zacks Consensus Estimate of 91 cents. Revenues of $2,630.9 million missed the Zacks Consensus Estimate of $2,606.2 million. Revenues surged 40.4% year over year, driven by upbeat passenger volumes.
On the back of the buoyant traffic scenario in the Christmas/New Year period, RYAAY’s profit after tax was €211 million in third-quarter fiscal 2023 against a net loss of €96 million incurred a year ago. In the same time period, operating costs climbed 36% to €2.15 billion, driven by a 52% increase in fuel expenses to €0.90 billion.
Average fares in the third quarter of fiscal 2023 were up 14% from the corresponding pre-COVID level. Net debt at RYAAY declined to €0.96 billion at the end of the fiscal third quarter from €1.45 billion at the end of the fourth quarter of fiscal 2022.
Ryanair maintained its traffic forecast for fiscal 2023 of 168 million. Riding on a strong fiscal third quarter, profit after tax for fiscal 2023 is still expected to be in the €1.325 billion–€1.425 billion range.
We remind investors that the current forecast was announced early last month owing to the surge in traffic witnessed during the peak Christmas/New Year period. The earlier guidance for profit after tax in fiscal 2023 was in the €1 billion-€1.20 billion band.
Continuing the traffic strength in January, Ryanair flew 11.8 million passengers in the month, higher than the 7 million flown a year-ago. Load factor (% of seats filled by passengers) in January 2023 was 91%, compared with 79% a year-ago.
Below we present some stocks from the Zacks Airline industry, that have reported fourth-quarter 2022 earnings beat.
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
Delta reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis. Management expects first-quarter 2023 earnings per share in the band of 15-40 cents.
Alaska Air Group (ALK - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. Quarterly earnings of 92 cents per share beat the Zacks Consensus Estimate of 90 cents. The bottom line surged more than 100% year over year.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) rose 14% to 12.85 billion. Consolidated load factor (percentage of seats filled by passengers) increased 6.1 percentage points to 85.5% in the fourth quarter of 2022. Economic fuel price per gallon climbed 57.1% to $3.55.
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Why Ryanair (RYAAY) Stock Is Up 3.6% Since Q3 Earnings Release
Shares of Irish carrier Ryanair Holdings (RYAAY - Free Report) are performing well following the release of its third-quarter fiscal 2023 earnings report on Jan 30. Shares have gained 3.6% since then. The upside was due to the earnings beat reported by RYAAY.
Lets delve deep into the earnings report and the guidance.
Ryanair’s third-quarter fiscal 2023 (ended Dec 31, 2022) earnings of 95 cents per share (excluding 4 cents from non-recurring items) beat the Zacks Consensus Estimate of 91 cents. Revenues of $2,630.9 million missed the Zacks Consensus Estimate of $2,606.2 million. Revenues surged 40.4% year over year, driven by upbeat passenger volumes.
On the back of the buoyant traffic scenario in the Christmas/New Year period, RYAAY’s profit after tax was €211 million in third-quarter fiscal 2023 against a net loss of €96 million incurred a year ago. In the same time period, operating costs climbed 36% to €2.15 billion, driven by a 52% increase in fuel expenses to €0.90 billion.
Average fares in the third quarter of fiscal 2023 were up 14% from the corresponding pre-COVID level. Net debt at RYAAY declined to €0.96 billion at the end of the fiscal third quarter from €1.45 billion at the end of the fourth quarter of fiscal 2022.
Ryanair maintained its traffic forecast for fiscal 2023 of 168 million. Riding on a strong fiscal third quarter, profit after tax for fiscal 2023 is still expected to be in the €1.325 billion–€1.425 billion range.
We remind investors that the current forecast was announced early last month owing to the surge in traffic witnessed during the peak Christmas/New Year period. The earlier guidance for profit after tax in fiscal 2023 was in the €1 billion-€1.20 billion band.
Continuing the traffic strength in January, Ryanair flew 11.8 million passengers in the month, higher than the 7 million flown a year-ago. Load factor (% of seats filled by passengers) in January 2023 was 91%, compared with 79% a year-ago.
Zacks Rank
Ryanair currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Below we present some stocks from the Zacks Airline industry, that have reported fourth-quarter 2022 earnings beat.
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
Delta reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis. Management expects first-quarter 2023 earnings per share in the band of 15-40 cents.
Alaska Air Group (ALK - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. Quarterly earnings of 92 cents per share beat the Zacks Consensus Estimate of 90 cents. The bottom line surged more than 100% year over year.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) rose 14% to 12.85 billion. Consolidated load factor (percentage of seats filled by passengers) increased 6.1 percentage points to 85.5% in the fourth quarter of 2022. Economic fuel price per gallon climbed 57.1% to $3.55.