- Singapore Air’s net income for the fiscal year is S$2.67 billion, marking a 24% year-on-year increase, and beating the estimate of S$2.59 billion.
- The company’s revenue touched S$19.01 billion, presenting a growth of 7% year-on-year, surpassing the estimated revenue of S$18.73 billion.
- The operating profit came to be around S$2.73 billion, a small rise of 1.3% from the previous year but less than the estimated S$2.78 billion.
- The final dividend per share for the fiscal year is S$0.38, slightly less than the estimated S$0.43.
- Fuel cost for the company decreased by 2.5% year-on-year to S$5.08 billion, which is a little higher than the projected estimate of S$5.02 billion.
- Fuel hedging gains dropped by half almost, down 48% to S$391 million, as compared to last year.
- Singapore Air acknowledges supply chain constraints posing significant challenges.
- In a noteworthy action, the company has declared that all remaining McBs will be redeemed.
- There’s a silver lining as cargo demand strengthened towards the end of fiscal year 2023/24.
- In terms of investment outlook, there are 2 buys, 7 holds, and 3 sells for Singapore Air.
Singapore Airlines on Smartkarma
Analysts on Smartkarma have been closely following Singapore Airlines with varied sentiments. Neil Glynn‘s insights suggest a bearish lean, emphasizing the theme of earnings normalization as FY25 approaches. He highlights the company’s struggle with inflationary pressures and forecasts a disappointing 4Q24 earnings report, with FY25 projections significantly below consensus levels.
On the contrary, Mohshin Aziz‘s bullish perspective paints a brighter picture, pointing to strong operating statistics in November 2023 and a favorable downtrend in fuel and USD costs. Aziz recommends a buy rating with a target price of SGD 8.07, projecting an upside potential of 26%. Despite differing views, all analysts agree that Singapore Airlines faces challenges in managing costs and navigating through the onset of earnings normalization in the upcoming quarters.
A look at Singapore Airlines Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
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
According to Smartkarma Smart Scores, Singapore Airlines Limited shows a promising long-term outlook, with strong ratings in key areas. With a Growth score of 5, the company is expected to thrive and expand in the future, indicating potential for development and profitability. Complementing this, the company also received high scores in Dividend, Resilience, and Momentum, indicating stability, consistent performance, and positive market sentiment.
Operating in multiple continents, including Asia, Europe, the Americas, South West Pacific, and Africa, Singapore Airlines Limited is a versatile company offering a range of aviation-related services. Its overall positive Smartkarma Smart Scores point towards a favorable outlook for investors seeking long-term growth and stability in the airline industry. With these strong scores across various factors, Singapore Airlines is positioned well for sustained success in the evolving aviation market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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