Ryanair Holdings (NASDAQ: RYAY) announced impressive first-quarter financial and operating numbers. However, this does not surprise users of his TipRanks website traffic screener. His website traffic screener at TipRanks highlighted that Ryanair entered the top 10 airlines based on year-over-year growth in his website visits in June 2022.
According to the tool, web access to ryanair.com increased by 49.11% year-over-year in June 2022. Additionally, traffic has more than doubled in the first six months of the year. A surge in website visits indicates that Ryanair could benefit from a rebound in demand, and the first quarter results revealed the same.
Ryanair’s Q1 traffic jumped from 8.1 million to 45.5 million year-over-year. What’s more, it was about 9% higher than pre-COVID levels, with a sharp recovery in demand pushing the top line past his 600%. Although the company delivered profitable growth, his PAT (profit after tax) in the first quarter remained lower than in the pre-COVID period.
Management said higher costs and lower fares due to Russia’s invasion of Ukraine impacted earnings.
Contents of Horizon Post Q1
Management is optimistic that high vaccination coverage will support the aviation and tourism industries. Ryanair aims to increase passenger numbers to his 165 million in fiscal year 2023. This is 11% higher than pre-COVID levels. Given pent-up demand and strong bookings, Ryanair’s guidance looks achievable.
Q2 average fares were above pre-COVID levels and should support profitability. But volatile fuel prices, geopolitical and supply chain risks, and a resurgent virus could still ruin things.
Conclusion
Ryanair closed 4.6% higher on Monday following its first quarter numbers. On the other hand, strong demand and increased bookings bode well for growth. We are also committed to reducing our debt and plan to reach zero net debt over the next two years.
Given the improving business environment, RYAAY has received positive signals from hedge funds and individual investors. Strong buy rating consensus on TipRanks based on 3 buy recommendations. Furthermore, Ryanair’s average price target of $121 implies a 62.94% upside potential. Overall, the RYAAY stock has an Outperform Smart score of 9 out of 10.
Disclosure
