Thursday preview: easyJet to report first-quarter figures

easyJet unveils its first-quarter results Thursday in the wake of news that its founder threatened to sell further shares if the airline places an order for more aircraft.

easyJet unveils its first-quarter results Thursday in the wake of news that its founder threatened to sell further shares if the airline places an order for more aircraft.

Sir Stelios Haji-Ioannou voiced his concern over the company's expansion plans in an open letter published on Monday, accusing directors of "squandering" cash on new planes. He warned directors he would sell his 37% family stake in the budget carrier if they go ahead with the order.

Analysts at Investec forecast passenger growth of 6.2% year-on-year to 13.7m and pegged revenue growth of 8.4% at £827.1m for the first quarter.

However the broker reduced its recommendation from 'buy' to 'hold' on Monday, saying: "The stock was our key 2012 airlines pick, but the shares have outpaced the market and we now project a period of share price stability rather than material growth, coupled with uncertainty over the outcome of a major new aircraft order in 2013."

In contrast, Morgan Stanley retained its 'overweight' stance on the stock on Wednesday, saying that it remains its "top pick in the European airline sector". The US broker's full-year profit before tax forecast of £356m is currently 13% ahead of consensus estimates.

Shares fell 0.12% to 856.00p at 16:00 a day ahead of the results.

Thursday January 24

INTERIM DIVIDEND PAYMENT DATE

Dairy Crest Group, Tongaat-Hulett Ltd.

QUARTERLY EX-DIVIDEND DATE

Marsh & Mclennan Cos Inc.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Balance of Payments (EU) (09:00)

ECB Interest Rate (EU) (12:45)

Spanish Unemployment (Q4) (08:00)

Eurozone Manufacturing/Service sector PMIs (Jan.) (09:00)

US Initial Jobless Claims (Jan 19) (13:30)

US Leading indicators (Dec.) (15:00)

FINALS

Chemring

GMS

Mam Funds

IMSS

easyJet, Invensys, Carphone Warehouse, First Group

Q3

London Stock Exchange Group

AGMS

Botswana Diamonds, Invesco Leveraged High Yield Fund Ltd., Octopus VCT 3, Octopus VCT 4, Scottish Oriental Smaller Companies Trust, Sinclair (William) Holdings, Smiths News

TRADING ANNOUNCEMENTS

Barr (A.G.)

UK ECONOMIC ANNOUNCEMENTS

BBA Mortgage Lending Figures (09:30)

CBI Distributive Trades Surveys (11:00)

Speech MPC by Member Martin Weale (17:30)

Speech Andy Haldane, Executive Director of Financial Stability BoE (06:00)

FINAL DIVIDEND PAYMENT DATE

Aberdeen Asset Management

RD

Recommended

Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022
Invest in VCTs: tax-free investments set to break records
Investment strategy

Invest in VCTs: tax-free investments set to break records

Generous tax breaks make VCTs – venture capital funds – an attractive supplement to pensions.
21 Jan 2022
HubSpot: a tech stock set to tumble
Trading

HubSpot: a tech stock set to tumble

US tech stocks have had a fantastic couple of years. But this year is unlikely to be so bullish for high-fliers that can’t turn big profits.
18 Jan 2022

Most Popular

Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022
Interest rates might rise faster than expected – what does that mean for your money?
Global Economy

Interest rates might rise faster than expected – what does that mean for your money?

The idea that the US Federal Reserve could raise interest rates much earlier than anticipated has upset the markets. John Stepek explains why, and wha…
6 Jan 2022