Things looking better for the customer at present
Quote:
Originally Posted by
BlackPeter
Looks like there is a wee analyst re-rating going on:
2017 revenue estimate down to $5196m (from $5531m)
2017 EPS estimate down to 33.7 cts per share (from 47.8 cents / share)
Predicting further EPS drops in 2018 and 2019 (but then - who knows?)
http://www.4-traders.com/AIR-NEW-ZEA...07/financials/
12 month consensus now down to $2.20 ($2.10 to $2.35) and recommendation "Hold".
http://www.4-traders.com/AIR-NEW-ZEA...407/consensus/
Given that analysts are typically optimistic and slow in changing their (recently quite upbeat) estimates ... maybe a good idea to wait until this cyclical stock comes closer to the bottom.
Discl: not holding; DYOR;
Published figures show that globally RPK growth is now under-performing the long term average (short term now 4.5%).
US/Europe/Asia (x China/India) full service are sub 2.5% and even the Low Cost guys have seen growth declines (to 12% :) ).
More importantly ASK growth is running higher than RPK growth at about 7%.
This is currently manifesting itself as a large number of airlines offering really good deals.
So the analysts are currently more likely to be cutting rather than raising their carefully considered valuations.
Best Wishes
Paper Tiger