Latest news with #profitwarnings
Reuters
5 days ago
- Business
- Reuters
Struggling Wizz Air's annual profit down over 61%, misses expectation
June 5 (Reuters) - Budget carrier Wizz Air (WIZZ.L), opens new tab on Thursday reported an annual operating profit that fell short of analysts' expectations, as capacity constraints due to grounded planes and stubbornly high costs continued to weigh on performance. Wizz Air reported an operating profit of 167.5 million euros ($191.05 million) for the financial year, down 61.7% from a year ago and missing the 246 million euros projected by analysts polled by LSEG. European airlines have warned of longstanding delivery delays and uncertainty around maintaining post-COVID demand as the world faces economic turmoil tied to U.S. President Donald Trump's tariff threats. However, the sector has largely benefited from lower fuel prices. Wizz Air in particular has been bogged down by Pratt and Whitney engine repair challenges, limiting its ability to grow capacity. It has issued two profit warnings in the last year. On Thursday, the company said it would not provide guidance for 2026 at this stage of the year, citing limited visibility across its trading seasons. ($1 = 0.8767 euros)
Yahoo
10-05-2025
- Business
- Yahoo
FTSE shares: a once in a blue moon chance to get rich?
What on earth is going on with the stock market? A lot of people have been wondering that over the past few months, as we have seen some wild swings on both sides of the pond. Quite a few FTSE 100 shares have crashed, only to get back to where they were in short order. Look, for example, at the massive 'V' near the right-hand axis of the share price chart for M&G. Not all have bounced back, and I reckon there are some potential bargains in the market right now. That could present a rare opportunity for investors to build wealth, as they can buy quality companies for less than before. To illustrate this point, I will use one FTSE 100 share that has already recovered a lot of ground – but still looks seriously undervalued to me. The share in question is sportswear retailer JD Sports (LSE: JD). The JD Sports share price has leapt 37% over the past few weeks. But that still leaves it 27% below where it was a year ago. In fact, it is 46% below where it stood as recently as September. Has much changed since September? Yes, it has, and I think that explains part of the fall. JD Sports issued multiple profit warnings last year. Tariffs have loomed larger as a risk for the company, which has large operations in the US and UK but imports a lot of its stock. A less ambitious store opening programme announced this year could reduce the long-term growth prospects for the company. It expects a slight fall this year in like-for-like sales. Still, as the company's shop opening programme continues for now, it – along with acquisitions – means that JD Sports expects strong overall (not like-for-like) growth in revenues this year due to a larger shop estate. Cutting back on opening new shops has the benefit of reducing capital expenditure, potentially boosting profits. An economic downturn could hurt demand for pricy trainers, but the company's market is large and it has a well-proven business model that is working well internationally. It benefits from a strong brand, deep customer understanding, and economies of scale. At its current price, the FTSE footwear king has a market capitalization of £4.5bn. That is barely five times the company's expected profit before tax and adjusting items for the year, of £915m-£935m. On that basis, JD Sports shares look badly undervalued to me even now. I see it as a potential bargain for long-term investors to consider. JD Sports is not the only FTSE 100 share that I reckon is currently trading for notably less than it should be, when considering its long-term commercial prospects. By building up a portfolio of brilliant shares at such attractive prices, and holding for the long term, I think investors have an excellent opportunity to try and build wealth. The post FTSE shares: a once in a blue moon chance to get rich? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool C Ruane has positions in JD Sports Fashion. The Motley Fool UK has recommended M&g Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Bloomberg
06-05-2025
- Business
- Bloomberg
Contract Cancellations and Delays Trigger UK Profit Warnings
Contract cancellations and delays are now a record cause of profit warnings among the UK's listed companies, according to a report from consultancy EY-Parthenon. Of the 62 profit warnings issued by UK-listed firms during the first quarter, 40% cited delays and cancellations to contracts and orders as a primary cause, the report shows. That is the highest ever proportion attributed to this specific cause in the 25 years that EY-Parthenon's analysis covers.
