On 10 May 2019, the S&P/ASX 200 Industrials (Sector) index was up by 0.44%. Let us now, understand how these two stocks are performing.
Webjet Limited (ASX: WEB)
Webjet Limited is into digital travelling business, and its business spans across both wholesale markets (through B2B), as well as global consumer markets (through B2C). The company provides a full range of online travel booking service for flights, hotels, car hire, cruises, tours.
The WEB stock has generated a decent YTD return of 56.47%.
On 21 February 2019, the shares of WEB took a sudden upward movement after the release of the half-yearly results. During the period, the company reported an increase in the total transaction value (TTV) by 29% to $1.9 billion. There was an increase in the revenue by 33% to $175.3 million to $175.3 million. There was an increase in the EBITDA by 42% to $58 million. The EBITDA margin was up by 201 bps. The company made a net profit after tax of 59%. The company declared a dividend of 8.5 cents per share (fully franked).
In the J.P. Morgan Emerging Companies Melbourne Conference presentation, released on 16 April 2019, the company highlighted that its WebBeds division provides a user-friendly solution to the global hotel room supply and distribution challenge. WebBeds acts as an intermediary between hotels looking to fill hotel rooms, and its client looking to find rooms for their customers. The above-mentioned points contribute towards WebBeds winning market share.
By the end of the trading session, on 10 May 2019, the closing price of the shares of WEB was A$16.620, up by 0.302% as compared to its previous closing price. WEB holds a market capitalization of A$2.25 billion with 135.6 million outstanding shares and a PE ratio of 41.16x.
Qantas Airways Limited (ASX: QAN)
Qantas Airways Limited belongs to the Industrial sector; and has been popular in providing air transportation services for domestic as well as international routes. Its operations also include the sale and associated support services for worldwide and domestic holiday tours.
The latest trading update for Q3 FY19 has been decent for the group with a 2.3% growth in the total revenue (reported at $4.4 billion) despite the Easter timing that began in Q3 FY19 but shifted to Q4 FY19. Additionally, capital management initiatives and new routes and deals are paving the way for better scenario going forward.
In the 1H FY2019 results, the underlying PBT declined by $179 million to $780 million. Despite an increase in the fuel bill, the company was able to deliver a strong 1H FY2019 profit. The fuel bill during the period was reported as $2 billion. The Statutory Earnings per share was recorded at 30 cents. Qantas Airways Limited declared an interim dividend of 12 cents per share, which was fully franked.
The balance sheet of the company reported a marginal fall in the net asset base, as a result of an increase in the total liabilities. The total shareholdersâ equity for the period was $3,359 million.
During the period, there was a fall in the operating cash inflow from $1,734 million in 1H FY2018 to $1,254 million in 1H FY2019. By the end of the 1H FY2019, the company had net cash and cash equivalent of $1,494 million.
In the last 5 years, the shares of QAN have generated a return of 349.23%. By the end of the trading session, on 10 May 2019, the closing price of the shares of QAN was A$5.410, down by 2.698% as compared to its previous closing price. QAN holds a market capitalization of A$8.87 billion with 1.6 billion outstanding shares and a PE ratio of 10.69x.
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