Australian earnings preview – Webjet


Full Year:

Webjet Ltd (WEB) is an online travel agency operating in Australia and New Zealand, with customers across global consumer and wholesale markets. It supplies lodging to the travel industry through its WebBeds division. It reports its full-year numbers on the 20th of August.

The travel industry has been decimated by the impact of the COVID-19 pandemic as borders slammed shut globally and domestically and travellers cancelled or postponed trips.

Webjet raised over $360 million in equity in April to cover operating costs and capital spending until the end of 2020, made more than 440 roles redundant, deferred its interim dividend payment and reduced executive pay. Webjet has raised an additional $160 million in recent months to boost liquidity and fund potential takeover deals in the pandemic-ravaged travel industry.

After a strong first half of the year, it’s been a very different story in the second half for Webjet.

Consensus estimate earnings is around $55m FY20, implying a loss of $31 million during the second half of the year.

Technically, the decline from the year to date $14.63 high to the April $2.25 low is impulsive and the price action since then appears corrective. On the downside, support near $2.50 was recently tested and held, perhaps by buyers expecting a vaccine-induced recovery. Whether this turns out to be a smart move, time will tell.

On the topside, short term resistance is viewed $3.70 region coming from the gap lower on March the 18th  before medium term resistance near the $4.92 high of June.

Australian earnings preview – Webjet

Source Tradingview. The figures stated areas of the 14th of August 2020. Past performance is not a reliable indicator of future performance.  This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.