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EUR 100.00
For Business Accounts Only
Sales: € 6.107 Bn (+0.8% vs. +4.8% expected and +3.1% expected by the market consensus);
EBIT: € 765.0 M (+7.0% vs. +1.4% expected and +5.2% expected by the market consensus);
Net Profit: € 573.0 M (+16.5% vs. -7.3% expected and -9.1% expected by the market consensus);
FY2019 vs. FY2018 Results
Sales: € 25.506 Bn (+4.5% vs. +5.5% expected and +5.1% expected by the market consensus);
EBIT: € 3.285 Bn (-5.7% vs. -6.9% expected and -6.1% expected by the market consensus);
Net Profit: € 2.387 Bn (-1.4% vs. -6.3% expected and -6.6% expected by the market consensus);
Results came in better than expected in EBIT and Net Profit. As for the key operating factors, we stress that the 4Q’19 unit revenues fared slightly worse than expected (+2.2% vs. +3.4% BS(e)), with exfuel unit costs clearly beating expectations (-0.7% vs. +2.6% BS(e)), which justifies the difference vs. our estimates.
The lack of visibility linked to COVID-19 means no guidance has been given for 2020. Specifically, the company suggests that it is having an impact on demand, especially on “Asian and European routes, as well as business trips, due to even cancellations and restrictions on corporate travelâ€. Part of the capacity is being diverted to routes with stronger demand, but the company expects a net negative impact on capacity growth in 2020 of -1% (leaving it at +2%).
The share price has plummeted -25% (-16% vs. IBEX) since the emergence of media rumours on the coronavirus, factoring in a recurring EBIT -16% below that seen in 2019, which in unit terms would mean returning to levels not seen since 2014, which we believe is only consistent with a economic recession. BUY. Target Price: € 8.00/sh (upside 32.58%)
IAG: FY2019 RESULTS (ANÃLISIS BANCO SABADELL)
4Q'19 vs. 4Q'18 ResultsSales: € 6.107 Bn (+0.8% vs. +4.8% expected and +3.1% expected by the market consensus);
EBIT: € 765.0 M (+7.0% vs. +1.4% expected and +5.2% expected by the market consensus);
Net Profit: € 573.0 M (+16.5% vs. -7.3% expected and -9.1% expected by the market consensus);
FY2019 vs. FY2018 Results
Sales: € 25.506 Bn (+4.5% vs. +5.5% expected and +5.1% expected by the market consensus);
EBIT: € 3.285 Bn (-5.7% vs. -6.9% expected and -6.1% expected by the market consensus);
Net Profit: € 2.387 Bn (-1.4% vs. -6.3% expected and -6.6% expected by the market consensus);
Results came in better than expected in EBIT and Net Profit. As for the key operating factors, we stress that the 4Q’19 unit revenues fared slightly worse than expected (+2.2% vs. +3.4% BS(e)), with exfuel unit costs clearly beating expectations (-0.7% vs. +2.6% BS(e)), which justifies the difference vs. our estimates.
The lack of visibility linked to COVID-19 means no guidance has been given for 2020. Specifically, the company suggests that it is having an impact on demand, especially on “Asian and European routes, as well as business trips, due to even cancellations and restrictions on corporate travelâ€. Part of the capacity is being diverted to routes with stronger demand, but the company expects a net negative impact on capacity growth in 2020 of -1% (leaving it at +2%).
The share price has plummeted -25% (-16% vs. IBEX) since the emergence of media rumours on the coronavirus, factoring in a recurring EBIT -16% below that seen in 2019, which in unit terms would mean returning to levels not seen since 2014, which we believe is only consistent with a economic recession. BUY. Target Price: € 8.00/sh (upside 32.58%)
Underlying
International Consolidated Airlines Group SA
International Airlines Group is an international scheduled airline and global premium airlines. Co.'s principal place of business is London with significant presence at Heathrow, Gatwick and London City airports.
Provider
Sabadell
Francisco Rodriguez
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