Jet2 (LON:JET2) Posts Quarterly Earnings Results

Jet2 (LON:JET2) announced its earnings results on Wednesday. The company reported GBX 211.20 earnings per share for the quarter, Digital Look Earnings reports. Jet2 had a return on equity of 19.92% and a net margin of 5.49%.

Jet2 Price Performance

LON:JET2 opened at GBX 1,446 on Friday. The firm has a market cap of £2.61 billion, a PE ratio of 6.17, a price-to-earnings-growth ratio of 9.34 and a beta of 1.46. The company has a quick ratio of 1.49, a current ratio of 1.36 and a debt-to-equity ratio of 14.00. The company’s 50-day moving average price is GBX 1,227.38 and its two-hundred day moving average price is GBX 1,233.12. Jet2 has a 12 month low of GBX 980 and a 12 month high of GBX 1,748.

Analyst Upgrades and Downgrades

Several brokerages have commented on JET2. Royal Bank Of Canada lifted their price target on Jet2 from GBX 1,800 to GBX 1,900 and gave the stock an “outperform” rating in a research report on Thursday. Canaccord Genuity Group lowered their price objective on shares of Jet2 from GBX 1,900 to GBX 1,750 and set a “buy” rating on the stock in a research note on Wednesday. UBS Group reaffirmed a “buy” rating and set a GBX 1,660 target price on shares of Jet2 in a research report on Friday, July 3rd. Jefferies Financial Group reiterated a “buy” rating and set a GBX 1,800 target price on shares of Jet2 in a research note on Wednesday, April 29th. Finally, JPMorgan Chase & Co. reduced their price target on shares of Jet2 from GBX 1,300 to GBX 1,200 and set a “neutral” rating for the company in a report on Tuesday, May 5th. Six analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 1,638.14.

Key Stories Impacting Jet2

Here are the key news stories impacting Jet2 this week:

• Positive Sentiment: Jet2 announced a £250 million share buyback program, a move that signals confidence from management and can support earnings per share by reducing share count. Jet2 Launches 250 Million Share Buyback Programme
• Positive Sentiment: Jet2 also reported record passenger volumes and record revenues, while highlighting strong summer demand and continued booking momentum, which points to healthy near-term trading conditions. Jet2 Delivers Record Passenger Volumes and Unveils 250m Buyback Amid Gatwick Expansion
• Positive Sentiment: The company said summer bookings rose 7% as Middle East tensions eased, suggesting demand has improved as geopolitical uncertainty has moderated. UK’s Jet2 says summer bookings rise 7% as Middle East tensions ease
• Positive Sentiment: Royal Bank of Canada raised its price target on Jet2 to GBX 1,900 and kept an outperform rating, reinforcing the view that the shares still have upside. Digital Look broker update
• Neutral Sentiment: Jet2 issued travel and booking updates for passengers and warned about disruption at a European airport this weekend; these appear operational in nature and are not clearly material to earnings on their own. Jet2 issues travel warning for European airport this weekend
• Neutral Sentiment: Canaccord Genuity trimmed its price target to GBX 1,750 but retained a buy rating, which is still supportive even though the target was reduced. Digital Look broker update
• Negative Sentiment: The share price may be reacting to profit-taking after a sharp run-up, as several headlines have already pointed to a strong move on improved bookings and results, leaving less room for immediate upside.

Jet2 declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, July 8th that permits the company to buyback 0 shares. This buyback authorization permits the company to purchase shares of its stock through open market purchases. Shares buyback plans are often a sign that the company’s leadership believes its stock is undervalued.

About Jet2

Jet2 plc is a leading leisure travel group, specialising in friendly low fares from its award-winning airline, Jet2.com, and package holidays you can trust from the UK’s largest package holiday provider, Jet2holidays.
Jet2.com is the UK’s third largest airline, flying from 12 UK airports to over 70 destinations across Europe and beyond and Jet2holidays is the UK’s largest tour operator.