Ryanair to cap earnings season with jump in revenues

Airline has so far overcome delayed Boeing deliveries

Ryanair and rival Wizz Air will put a cap on an earnings season next week that has so far seen more than half of companies beat estimates.

Airlines benefited from Easter falling early this year. 

They now face scheduling and pricing challenges as the summer season approaches, leaving sector shares trailing other stocks. 

Ryanair’s revenue probably jumped 24% in the year through to the end of March, so far overcoming delayed Boeing deliveries and scuffles with third-party online travel agents, its results published on Monday morning will likely show. 

Plane groundings at rival Wizz Air may have also lent a hand. 

Ryanair annual adjusted earnings is seen up 33%, although the net loss probably swelled in the fourth quarter, seasonally the company’s weakest, consensus shows. 

The Boeing delays could rumple summer schedules. 

While peak Easter travel should have helped Wizz Air meet its 2024 revenue per available seat kilometre target, the grounding of 45 of its planes at the end of March could hamper summer bookings. 

Elsewhere, home improvement specialist Kingfisher is poised to benefit from economic recovery in its two biggest markets, while power generator SSE may have seen margins shrink for its thermal and gas storage units. 

Kingfisher’s first-quarter revenue may have slipped year on year but likely recovered sequentially as French DIY trends turned in its favour. 

The home improvement company is poised to benefit from economic recovery in its two biggest markets, France and Britain, as consumer sentiment and real wage growth improve, HSBC analysts said. 

The restructuring of Castorama and the rollout of Screwfix in France should soon feed through to operating profit, they said. 

Marks & Spencer, whose competitive pricing strategy has been driving volume gains, may need a new catalyst to spur faster earnings growth.

Adjusted pretax income likely grew 42% in its 2024 financial year but may only increase 6% in 2025, consensus shows. 

Margin recovery in the clothing and home part of the business could be held back until stores are rejigged, while the benefit of rivals closing may be fading.

SSE’s full-year adjusted operating income is expected to have fallen 7.4%, dragged down by its thermal generation and gas storage divisions. 

Receding margins in those segments could partly offset the earnings boost expected in the next financial year from the delivery of two wind projects.

SSE’s networks and renewables segments could shine over the next decade as the company invests in supporting Britain’s energy transition, Berenberg analysts said. 

• Bloomberg