Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional val ...

Ryanair (RYAAY) closed the last trading session at $45.08, gaining 0.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $56.95 indicates a 26.3% upside potential.The mean estimate comprises four short-term price targets with a standard deviation of $4.37. While the lowest estimate of $52 indicates a 15.4% increase from the current price level, the most optimistic analyst expects th ...

Group 1 - Ryanair reported its H1 2025 financial results in early November, providing a positive outlook on fares for the upcoming winter and next summer [1] - The report follows a disappointing summer season for the airline [1] Group 2 - The article emphasizes the importance of fundamental, income-oriented, long-term analysis in the investment community, particularly among buy-side hedge professionals [1]

Ryanair Holdings plc (RYAAY) reported disappointing second-quarter fiscal 2025 (ended Sept. 30, 2024) results wherein both earnings and revenues lagged the Zacks Consensus Estimate.  Quarterly earnings per share (EPS) of $2.82 lagged the Zacks Consensus Estimate of $2.92 and declined year over year.Find the latest EPS estimates and surprises on ZacksEarnings Calendar.Revenues of $5.56 billion missed the Zacks Consensus Estimate of $5.59 billion. However, the top line improved year over year.RYAAY’s profit a ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the ...

Financial Data and Key Metrics - H1 after-tax profits were EUR1.8 billion, down 18% YoY from EUR2.18 billion [4] - H1 revenues increased by 10% to EUR2.74 billion, driven by 9% traffic growth [7] - Average fares fell by 10% in H1, with Q1 down 15% and Q2 down 7% [4] - Gross cash at the end of H1 was over EUR3.3 billion, with net cash at EUR600 million [8] - The company completed a EUR700 million share buyback in August and is 30% through a EUR800 million follow-on buyback [6] Business Line Data and Key Metrics - The fleet consisted of 608 aircraft at the end of H1, including 170 B737 Gamechangers, which increased to 172 by October [5] - Five new bases and 200 new routes were opened during the summer [5] - Approved OTA partnerships now cover over 90% of all OTAs, protecting consumers from overcharging [5] Market Data and Key Metrics - Traffic grew by 9% to a record 115 million passengers, though it would have been higher without Boeing delays [4] - The company expects to carry between 198 million and 200 million passengers for the full year, up 8% YoY [18] - Forward bookings for Q3 are strong, with 70% of bookings already in the system [18] Company Strategy and Industry Competition - The company is focusing on cost discipline, with unit costs expected to be broadly flat for the full year [19] - Ryanair's cost advantage over competitors is widening due to owning its entire Boeing 737 fleet, avoiding expensive leases [8] - The company is working closely with Boeing to manage delivery delays and expects to receive 15 of 29 delayed aircraft by June 2025 [11][12] Management Commentary on Operating Environment and Future Outlook - Management noted that the industry is facing capacity constraints due to Boeing delays and Pratt & Whitney repairs, which could lead to higher pricing in the medium term [15] - The company is optimistic about pricing for summer 2025 and 2026, given weak prior-year comparables and capacity constraints [16] - Management highlighted the impact of consumer spending tightness in Europe and the OTA dispute on pricing softness [14] Other Important Information - The Board is reviewing ownership and control restrictions, with a decision expected in the first half of 2025 [17] - The company has hedged 85% of its fuel for H2 FY25 at $79 per barrel and 75% for FY26 at $77 per barrel [6] - Ryanair has returned almost EUR9 billion to shareholders since 2008, including dividends and share buybacks [9] Q&A Session Summary Question: Impact of ATC disruptions and OTA disputes - The OTA dispute impacted load factors by 2-3 points in Q3 and Q4 of the previous year, with a more significant impact in summer 2024 [28] - Management estimates that up to half of the 10% fare decline in H1 was due to the OTA dispute, with the other half attributed to consumer spending pressure [31] - Forward bookings for summer 2025 are strong, with a 2% increase compared to the same period last year [36] Question: Fuel hedging and cost management - The company has hedged 75% of its fuel for FY26 at $77 per barrel, taking advantage of recent price weakness [6] - Unit costs are expected to be broadly flat for the full year, with fuel hedge savings offsetting ex-fuel cost inflation [19] - Overstaffing due to Boeing delays resulted in higher crew costs, but the company expects to manage this better in FY26 [48] Question: Aircraft delivery delays and growth outlook - Boeing delays have forced the company to revise its traffic growth targets, with FY25 now expected at 200 million passengers (down from 205 million) and FY26 at 210 million (down from 215 million) [12] - The company is working closely with Boeing and expects to receive 15 of 29 delayed aircraft by June 2025 [11] - Management remains optimistic about the MAX 10 certification, which is expected in the second half of 2025 [79] Question: Ancillary revenue performance - Ancillary revenue grew by 10% in H1, slightly ahead of the 9% traffic growth [90] - Key drivers of ancillary revenue include reserved seating, onboard sales, and the new order-to-seat initiative [91] - The company is working to optimize pricing and improve priority boarding performance [92] Question: Share buybacks and capital allocation - The company completed a EUR700 million share buyback in August and is 30% through a EUR800 million follow-on buyback [6] - Future buybacks will depend on cash generation, with priority given to bond repayments in 2025 and 2026 [74] - The Board remains committed to returning surplus cash to shareholders through dividends and buybacks [164] Question: Ownership and control restrictions - The Board is reviewing potential changes to ownership and control restrictions, with a decision expected in the first half of 2025 [17] - The company has consulted with 60% of its shareholders and expects to complete the process in the next 3-4 months [103] - Potential outcomes include removing ownership restrictions, removing voting restrictions, or maintaining the status quo [107]

Revenue Performance - Scheduled revenues decreased by 2% to €5.95 billion, with traffic growing 9% to 115.3 million despite challenges[31] - Ancillary revenues increased by 10% to €2.74 billion, contributing to total revenues rising 1% to €8.69 billion[32] - Scheduled revenues for Q2 FY25 rose by 1% to €3.62 billion, with traffic growing 9% to 59.8 million[41] - Ancillary revenues in Q2 FY25 rose by 9% to €1.44 billion, leading to total revenues increasing by 3% to €5.07 billion[42] - Scheduled revenues for the half-year ended September 30, 2024, were €5.949 billion, while ancillary revenues were €2.742 billion[81] - Total revenue for the half-year ended September 30, 2024, was €8.692 billion, an increase from €8.575 billion in the same period of 2023[84] Operating Expenses - Operating expenses for fuel and oil rose by 3% to €2.90 billion, while airport and handling charges increased by 12% to €965 million[33] - Staff costs surged by 21% to €897 million due to a larger fleet and ongoing Boeing delivery delays[34] - Staff costs in Q2 FY25 increased by 17% to €449 million, reflecting a larger fleet and higher crewing ratios[45] Financial Position - Net finance income was up 57% to €50 million, supported by a strong cash balance[37] - Gross cash stood at €3.33 billion at September 30, 2024, with net cash at €0.59 billion[38] - Shareholders' equity increased by €0.14 billion to €7.76 billion, driven by a net profit of €1.79 billion[39] - The Group's non-current financial liabilities include long-term debt of €488.9M and bonds valued at €1,197.5M as of September 30, 2024[93] - The total financial liabilities as of September 30, 2024, amounted to €5,594.4M, with current liabilities including trade payables of €883.7M and accrued expenses of €1,592.6M[98] - As of September 30, 2024, the fair value of the Group's financial assets was €3,483.6M, with current financial assets including cash and cash equivalents[97] Capital Expenditures and Investments - Capital expenditures for the period amounted to €760.5 million, reflecting significant investment in aircraft[80] - The Group's net capital additions during the period were €0.69 billion, primarily for aircraft purchases[86] - The Group ordered up to 300 new Boeing 737-MAX-10 aircraft for delivery between 2027 and 2033, approved at the AGM in September 2023[77] Dividends and Share Buybacks - A final dividend of €0.178 per share was paid on September 19, 2024, in line with the Group's Dividend Policy[99] - The Company completed a €700M share buyback program in August 2024 and announced an additional €800M program, buying back approximately 47M shares at a total cost of €0.87BN, equivalent to about 4% of the issued share capital[100] - The Company declared an interim dividend of €0.223 per share payable in late February 2025[103] - Between October 1, 2024, and October 31, 2024, the Company bought back approximately 5M ordinary shares at a cost of approximately €99M under the ongoing €800M share buyback program[102] Taxation - The Group's consolidated tax expense for the half-year ended September 30, 2024, was €276 million, with an effective tax rate of approximately 13%[75] Assets and Fleet - As of September 30, 2024, the Group reported €10.94 billion in long-lived assets, with €10.70 billion related to aircraft[69] - The operating fleet consisted of 581 Boeing 737 and 27 Airbus A320 aircraft as of September 30, 2024[77] - The estimated residual value of each aircraft is 15% of market value on delivery, with a useful life of 23 years[71] Financial Risk Management - The Group's financial risk exposures are primarily related to commodity price, foreign exchange, and interest rate risks, managed through financial instruments[89] - There were no changes in the Group's risk management policies during the period[90] Other Information - No related party transactions materially affected the financial position or performance of the Group for the half-year ended September 30, 2024[88] - The maintenance and integrity of the Ryanair Holdings plc website is the responsibility of the Directors, and auditors do not accept responsibility for any changes to the financial statements since their initial presentation[124] - Legislation in the Republic of Ireland governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions[124]

Shares of Ryanair (RYAAY) have gained 0.6% over the past four weeks to close the last trading session at $45.43, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $58.08 indicates a potential upside of 27.9%.The mean estimate comprises four short-term price targets with a standard deviation of $3.31. While the lowest estimate of $54 indicates an 18.9% increase from the current pri ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Valu ...

Michael O'Leary became CEO of Ryanair in 1994 and has held the role ever since. NurPhoto via Getty Images Ryanair's CEO Michael O'Leary said that in his 30 years in the airline industry he had never seen capacity constraints like those he's facing now. The longtime chief of Europe's largest airline laid out the difficulties that Boeing's delayed deliveries are creating for his carrier in an interview with Reuters Wednesday. "We were supposed to get 20 deliveries before the end of December. They'll probably ...