🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

TUI Group stock climbs on FQ1 EBIT beat; Jefferies remains cautious

Published 02/13/2024, 06:18 PM
© Reuters.
TUI1n
-

Shares of TUI Group (TUIFF) rose 3% in Frankfurt after the travel giant revealed better-than-expected FQ1 EBIT and revenue.

Specifically, the company reported an underlying EBIT of €6 million, significantly better than the forecasted loss of €113 million. Net loss in the quarter amounted to €122.6 million, marking a 52% improvement year-over-year.

Revenue saw a significant increase, rising by 15% YoY to €4.30 billion, exceeding the estimate of €4.17 billion.

This performance was supported by an increase in guest numbers, with 3.5 million travelers choosing TUI in the three-month period, up from 3.3 million the previous year.

Looking ahead, TUI remains optimistic, maintaining its forecast for revenue growth of at least 10% and an increase in underlying EBIT of at least 25%.

As for the medium-term goals, TUI aims for an average EBIT growth of approximately 7%-10% CAGR.

The earnings report comes ahead of an annual general meeting, where TUI shareholders will decide on whether the company will delist its shares from the London Stock Exchange in favor of a full listing in Germany.

This decision is driven by the board's observation of a substantial decline in liquidity within the U.K. equity markets in recent years. TUI, which is currently dual-listed in Frankfurt and the U.K., notes that only 10% of its shares are held in London.

Despite an “undemanding valuation” and a reshaped balance sheet, Jefferies analysts said they still observe “ reinvestment risk in all key business units.”

“In an environment of macro uncertainty, we prefer share winners: Jet2 (Buy) trades on a similar c45% discount to history with a better-invested offer and clearer growth runway,” analysts wrote.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.