Flight Centre (FLT) guidance sees delays to growth
Stock
Flight Centre (FLT) $46.20 as at 22/10/2018
Event
The woes in the travel space continue hurt investors with today’s Flight Centre AGM coming with disappointing guidance, sending the stock around 10% lower this morning. Shares initially opened ~2% higher before entering a trading halt to release the company’s AGM presentation. The company guided to pre-tax profit of $390m - $420m, which would represent growth of 1-9%, well below market expectations of $423.9m, or over 10% growth on FY18.
Clearly the market had gotten ahead of itself, and looking at the impact into future years, the consensus was around 10% growth out to at least FY22. Also shaking market confidence was the weak start to the year and heavy reliance on the second half skew to bring home the numbers, with only 35% of the company’s pre-tax profit expected to be earnt in the 6-months to December.
Flight Centre (FLT) Chart
Market Matters Take/Outlook
