Qantas Airways Limited (ASX: QAN) shares are lifting off again on Thursday. In afternoon trade, the airline operatorâs shares are up 2% to $6.60.
This means the Qantas share price is now up 23% over the last 12 months, as you can see below.
It appears that investors are betting on a strong half year update from the Flying Kangaroo on 23 February.
Ahead of the release, letâs take a look at what the market is expecting from Qantas.
What is the market expecting from Qantasâ half year results?
According to a note out of Goldman Sachs, its analysts have named Qantas as a positive surprise candidate during earnings season.
This is because of a string of updates from international peers since weâve last heard from Qantas that appear supportive of a strong finish to the half. Goldman commented:
US airlinesâ 4Q results also reflected strength in pricing in the current environment, with American Airlines, Delta Airlines and United Airlines unit revenue averaging +19% vs. pre-covid level in the quarter.
Qantas has guided to underlying profit before tax of $1.35 billion to $1.45 billion for the half and Goldman appears to see this as being comfortably achieved.
Will there be a share buyback?
In light of this and its strong balance sheet, the broker sees scope for further capital management.
It expects a $400 million share buyback to be undertaken during the second half of FY 2023. This could be announced with its half year results.
Incidentally, the team at Morgans agrees with this view. It recently commented:
QANâs balance sheet strength positions it extremely well for its upcoming EBIT-accretive fleet reinvestment and further capital management initiatives (forecasting a A$400m on-market share buyback to be announced at 1H23 result).
Finally, while Morgans isn’t expecting a dividend in FY 2023, Goldman is forecasting a 10 cents per share dividend. This could mean a 5 cents per share interim dividend is declared this month if Goldman is on the money with its forecast.
The post Own Qantas shares? Here’s what the market is expecting from its half year results appeared first on The Motley Fool Australia.
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More reading
- Buy Qantas shares today for 30% upside: Morgans
- These are the best ASX 200 travel shares to buy right now: broker
- 4 top ASX 200 shares to pounce on for reporting season: Wilsons
- Why Morgans just added these ASX 200 shares to its best ideas list
- Whatâs going on with the Qantas share price today?
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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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