Disappointing Earnings: Cathay Pacific Airways (293) Misses Key Estimates in FY Report

Cathay Pacific Airways on Smartkarma

Cathay Pacific Airways has been receiving a lot of attention from independent analysts on Smartkarma, a platform where top analysts publish their research on companies. One recent report by Neil Glynn, titled “Cathay Pacific – Reported Air China Interest Prompts Assessment of Structural Disadvantages,” takes a critical look at the airline’s historical margin challenges and compares them to other global airlines. The report suggests that Cathay Pacific may be at a disadvantage due to its higher costs and lack of joint ventures or mergers. On the other hand, Osbert Tang, CFA, has a more positive outlook in their report titled “Cathay Pacific (293 HK): Taking off with Momentum.” Tang predicts that Cathay Pacific will exceed market expectations with strong traffic and improved yield, leading to further growth in the future.

In another report by Neil Glynn, “Cathay Pacific – Strong Pax Momentum Suggests 2024 Can Outperform Expectations,” the analyst analyzes the airline’s 2024 earnings prospects and believes that expectations for that year are too low. They point to the success of other North Asian airlines and their unit passenger revenue momentum as a positive indicator for Cathay Pacific’s future. Finally, Mohshin Aziz‘s report, “Cathay Pacific (293 HK, BUY, TP HK$9.90): Inputs from Analyst Briefing,” highlights the airline’s recent analyst briefing, where management discussed solid passenger demand, improving cargo operations, and manageable costs. Aziz predicts strong profits for the near future and recommends Cathay Pacific as a “value BUY” with a target price of HK$9.90.

A look at Cathay Pacific Airways Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Cathay Pacific Airways Limited, one of the leading airlines in the world, has a positive long-term outlook according to the Smartkarma Smart Scores. These scores, ranging from 1 to 5, indicate the company’s overall performance in various factors. While the company scores a 3 in value and a 1 in dividend, it excels in growth and momentum with a score of 5 for both. This shows that Cathay Pacific Airways is focused on expanding and continuously improving its performance for the future.

As a company that operates scheduled airline services, Cathay Pacific Airways is also involved in providing other related services such as airline catering, aircraft handling, and engineering. With a resilience score of 2, the company has shown its ability to weather challenges and adapt to changes in the industry. This, coupled with its strong growth and momentum scores, positions Cathay Pacific Airways as a promising player in the aviation industry for the long term.

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