Own Flight Centre shares? Here’s what you need to know ahead of its results

Flight Centre Travel Group Ltd (ASX: FLT) shares will be on focus next week when the travel agent giant releases its half-year results.

Ahead of the release on Wednesday, let’s see what the market is expecting.

Flight Centre half-year results preview

According to a note out of Goldman Sachs, its analysts are expecting the company to report explosive growth for the first half.

Its analysts have pencilled in sales growth of 28.5% to $1,288.1 million and earnings before interest and tax (EBIT) growth of 344.9% over the prior corresponding period. This is modestly higher than the market consensus estimate.

As for dividends, the broker is expecting a 23 cents per share dividend for the full year.

Flight Centre’s dividends are usually weighted to the second half, so this could mean an interim dividend in the region of 8 cents per share.

Elsewhere, analysts at Morgans recently commented on their expectations for the first half of FY 2024. They said:

Earnings are seasonally skewed to the 2H (even more so post the Scott Dunn acquisition). 2Q NPBT was guided to be below the 1Q of A$54m. In line with seasonal trends, 1H cashflow is usually weak.

Should you buy Flight Centre shares?

At present, Goldman Sachs is sitting on the fence with this one. It has a neutral rating and $20.70 price target on the company’s shares. This implies potential downside of 5% from current levels.

Morgans, on the other hand, is feeling more upbeat. It has an add rating and $26.00 price target on Flight Centre’s shares.

If the broker is on the money with this recommendation, it would mean upside of 19% for investors over the next 12 months.

The post Own Flight Centre shares? Here’s what you need to know ahead of its results appeared first on The Motley Fool Australia.

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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 positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Flight Centre Travel Group. 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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