Insights

Own Webjet shares? Here’s what to expect from next week’s FY22 results

Webjet is releasing its full-year results next week…
The post Own Webjet shares? Here’s what to expect from next week’s FY22 results appeared first on The Motley Fool Australia. –

Next week, Webjet Limited (ASX: WEB) shares will be in focus when the online travel agent releases its full-year results.

Ahead of the release, let’s take a look to see what analysts are expecting from the company.

What are analysts expecting from Webjet?

According to a note out of Morgans, its analysts are expecting Webjet to report another loss for the 12 months ended 31 March.

Its analysts are forecasting earnings before interest, tax, depreciation and amortisation (EBITDA) of $15.3 million for FY 2022. This compares to the market consensus estimate of an EBITDA loss of $6.8 million.

While on paper this loss doesn’t look great, it is worth noting that it is a big improvement on the company’s performance during the first half of FY 2022. Furthermore, the improvement comes despite the emergence of the highly disruptive Omicron variant during the period.

Morgans explained:

Our previous FY22 forecast was set before the Omicron variant emerged. Like all travel companies, WEB was materially impacted for ~10 weeks from late December to the end of February. We expect that WEB’s 3Q22 was still stronger than its 2Q22 but to a lesser degree than we thought in November.

We have downgraded FY22 EBITDA forecast due to Omicron. We forecast 2H22 positive EBITDA of A$0.6m, a big improvement from the 1H22 loss of A$15.9m, resulting in an FY22 EBITDA loss of A$15.3m (consensus is -A$6.8m).

Are Webjet shares good value?

Morgans continues to see value in Webjet shares at the current level. Particularly if you zoom out and look at the “recovery year” of FY 2024.

It commented:

Based on our forecasts, WEB is trading on an FY24 recovery year PE of 18.3x, which is at a discount to its five-year average PE (pre-COVID) of 20.6x.

In light of this, the broker has an add rating and $6.60 price target on Webjet’s shares. This implies potential upside of 20% for investors from current levels.

The post Own Webjet shares? Here’s what to expect from next week’s FY22 results appeared first on The Motley Fool Australia.

Should you invest $1,000 in Webjet right now?

Before you consider Webjet, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Webjet wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Will Webjet pay a dividend in 2022?
Are ASX 200 travel shares already fully valued in May?
These are the 10 most shorted ASX shares
2 top ASX growth shares Goldman Sachs rates as buys
Is the Webjet share price now a buy amid ‘strong’ travel demand?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!