UK Markets closed
  • NIKKEI 225

    26,739.03
    +336.19 (+1.27%)
     
  • HANG SENG

    20,717.24
    +596.56 (+2.96%)
     
  • CRUDE OIL

    110.35
    +0.46 (+0.42%)
     
  • GOLD FUTURES

    1,845.10
    +3.90 (+0.21%)
     
  • DOW

    31,261.90
    +8.77 (+0.03%)
     
  • BTC-GBP

    23,613.28
    +143.39 (+0.61%)
     
  • CMC Crypto 200

    650.34
    -23.03 (-3.42%)
     
  • Nasdaq

    11,354.62
    -33.88 (-0.30%)
     
  • ^FTAS

    4,083.84
    +44.90 (+1.11%)
     

Analysts Are More Bearish On Jet2 plc (LON:JET2) Than They Used To Be

  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

The latest analyst coverage could presage a bad day for Jet2 plc (LON:JET2), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

After this downgrade, Jet2's five analysts are now forecasting revenues of UK£1.4b in 2022. This would be a huge 245% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 58% to UK£0.70. Yet before this consensus update, the analysts had been forecasting revenues of UK£2.0b and losses of UK£0.59 per share in 2022. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

Check out our latest analysis for Jet2

earnings-and-revenue-growth
earnings-and-revenue-growth

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jet2's past performance and to peers in the same industry. The analysts are definitely expecting Jet2's growth to accelerate, with the forecast 245% annualised growth to the end of 2022 ranking favourably alongside historical growth of 5.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 34% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Jet2 to grow faster than the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Jet2. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Jet2, and we wouldn't blame shareholders for feeling a little more cautious themselves.

That said, the analysts might have good reason to be negative on Jet2, given dilutive stock issuance over the past year. For more information, you can click here to discover this and the 3 other concerns we've identified.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting