International Consolidat... Share Discussion Threads

[younasm] 28/10/2016 14:07

Wow -- good move up. I will go short next week --- just waiting for the price to settle and lose some volatility.Would be good to see 420-460p trading range into new year.

[redbaron10] 28/10/2016 12:05

It hacks me off when these financial journalists keep banging on about the 'currency headwinds' with these stocks.Ok it is a material fact in the financial reporting of these businesses,but it is made out to be some sort of criticism of the management performance.It isn't Willie Walsh's fault that we voted 'Brexit'and the pound plummeted.Give credit where credit is due.I've criticised him for some actions he and the board have taken but IAG is very lucky to have him.When you see the structural problems at Lufthansa and Air France-KLM ,that haven't been tackled head-on like Willie did in the formation of IAG,then be grateful to be invested here instead of the other two.Congrats Willie and the board for doing a good job.

[philanderer] 28/10/2016 10:48

Back in here this morning for the first time in 12 months.

Luck to all.

[broadwood] 28/10/2016 10:22

British Airways owner IAG (LON:IAG) flew to the top of FTSE 100 as it's third quarter was impacted by the weak pound but it improved its after tax profit in the three months.

The weakness in sterling cost the group €162m (£145mln) in the quarter of the year and operating profits fell 4%.
Willie Walsh, chief executive, said it had been a  tough operating environment but noted that the group's unit revenue performance was better than in the second quarter and  quarterly profit after tax was €970 million before exceptional items - an improvement of 9.9% compared to last year.

The interim dividend was increased 10% at 11 euro cents per share.
City broker Liberum rates shares a 'hold'.
It said the September quarter were "in line with our forecasts and consensus".
Operating profit was lower YoY (year-on-year), despite a full contribution from Aer Lingus  and a lower fuel bill, it noes.
"Currency was a material headwind in the period, with a net adverse impact on operating profit of €162m. We believe the bulk of this was related to the translation of sterling profits at British Airways."

On the broker's estimates, IAG trades on a price -to-earnings ratio of 5.4 times' on 2016 estimates, rising to 6.2 for 2017.
"These multiples are a material discount to the group’s historic trading range and its European network carrier peers," it says.
"We struggle to see how a discount valuation is justified

[broadwood] 28/10/2016 10:12

Market taken the 'bad' news positively.


International Consolidated (LSE:IAG)
Intraday Stock Chart
Today : Friday 28 October 2016

LONDON—British Airways parent International Consolidated Airlines Group SA Friday cut its earnings outlook further after third-quarter operating profit fell 3.6%, weighed down by the sharp drop in sterling after the U.K. voted to leave the European Union.

Operating profit for the crucial July through September period was €1.21 billion euros ($1.32 billion), with a €162 million currency headwind in the quarter. The figure strips out some nonoperating costs and taxes.
Net profit rose 9.9% to €930 million from €848 million. Sales in the period declined 4% to €6.5 billion.
"While strong, these results were affected by a tough operating environment with a very significant negative currency impact," IAG Chief Executive Willie Walsh said.
IAG reports earnings in euros, but its British Airways unit that generates most profit principally sells tickets in pounds which are now worth less.
The airline group, which also includes Aer Lingus and Spanish carriers Iberia and Vueling, cut its profit outlook for the year following the referendum. The pound has depreciated further since then against the dollar and the euro. Mr. Walsh said the guidance in July was based on the prevailing exchange rates now changed.
IAG Friday said it would deliver a full-year operating profit of €2.5 billion. It had already revised its outlook down to low double-digit growth in its adjusted operating profit beyond the €2.3 billion generated in 2015. IAG began the year expecting to deliver an operating profit of about €3.2 billion
European airlines have faced a multitude of headwinds weighing on earnings. Ticket prices are plummeting because of overcapacity, terror attacks have spooked passengers and repeated air-traffic-control strikes have led to thousands of flight cancellations.

Mr. Walsh said trading conditions said the business conditions were "tough," with low growth in Europe and weakness in markets such as Brazil. Conditions are worse than expected a year ago, he said, and had not improved since the Brexit vote.
The impact from air-traffic control strikes this year has been more pronounced than in prior years, he added.

Britain's June 23 vote to leave the EU has led the country's currency fall to more than 30-year lows. IAG isn't the only airline to suffer. Ryanair Holdings PLC, Europe's biggest discount airline, this month said its profit in the fiscal year ending March 31, 2017, would advance more slowly than expected because of the currency headwind.

Mr. Walsh, an Irishman who said he personally had opposed Britain leaving the EU, kept the carrier from joining others in lobbying to retain membership in the trade bloc, arguing an exit wouldn't materially impact the airline.
British Airways may raise ticket prices to offset sterling's weakness, Mr. Walsh said. However, he added that the currency weakness also have given the carrier a competitive edge on the important trans-Atlantic market because many of its costs have effectively fallen compared with U.S. rivals.
IAG on Thursday said it would pay an interim dividend of €0.11 per share, a 10% increase over the prior-year period, which it expects to be about half of the full-year payout.

IAG also said British Airways agreed with pension trustees a technical deficit of £ 2.8 billion ($3.4 billion), only slightly higher than the early projection.

[chiefbrody] 28/10/2016 09:45

Cheapest (by P/E) stock in the 100?

[skinny] 28/10/2016 08:32

Cantor Fitzgerald Hold 418.60 520.00 520.00 Reiterates

Credit Suisse Outperform 418.60 469.00 469.00 Retains

[skinny] 28/10/2016 08:31

NINE MONTHS RESULTS ANNOUNCEMENT

International Consolidated Airlines Group (IAG) today (October 28, 2016) presented Group consolidated results for the nine months to September 30, 2016.

IAG period highlights on results:

· Third quarter operating profit €1,205 million before exceptional items (2015: operating profit of €1,250 million)
· Net foreign exchange operating profit impact for the quarter adverse €162 million
· Passenger unit revenue for the quarter down 13.7 per cent and at constant currency down 5.9 per cent
· Non-fuel unit costs before exceptional items for the quarter down 6.9 per cent and at constant currency up 1.4 per cent
· Fuel unit costs before exceptional items for the quarter down 25.8 per cent, down 22.7 per cent at constant currency
· Operating profit before exceptional items for the period of nine months to September 30, 2016 €1,915 million (2015: €1,805 million), up 6.1 per cent. Net foreign exchange operating profit impact adverse €372 million
· Cash of €6,190 million at September 30, 2016 was up €334 million on 2015 year end
· Adjusted net debt to EBITDAR improved 0.1 to 1.8 times
· Diluted earnings per share up 18.3 per cent before exceptional items (23.8 per cent after exceptional items)

more....

[philanderer] 27/10/2016 18:10

(ShareCast News) - Societe Generale downgraded its stance on British Airways and Iberia parent International Consolidated Airlines to 'hold' from 'buy' and cut the price target to 420p from 500p.

[redbaron10] 27/10/2016 12:05

Now i've read three theories for yesterday's share price rise! Our contributor csmwssk12hu is of the opinion the pension news was responsible.I saw the big leap at the open of Wall st, along with the US airline shares, when oil prices dipped around then, and assumed it was oil related and now the 'Mail' financial journalist says it was due to the third runway at Heathrow decision plus the pension news.Take your pick boys and girls for the reason.Maybe all three were a factor.Let's see what excuses/reasons/analysis come out with tomorrow's results! Usual share price dip on results?

[csmwssk12hu] 26/10/2016 15:46

It won't you have just got 10 year agreement on pension liabilities at £300m per year, markets like certainty and you just got certainty on one of the biggest things holding this back, not to mention the find performed very well

[dac123] 26/10/2016 15:38

"if we get the usual ftse bounce tomorrow could be testing recent highs tomorrow"
sadly this will nose dive for no good reason, hope I'm wrong I still have a load of these long term

[csmwssk12hu] 26/10/2016 15:26

Good rise on a bad day for ftse, if we get the usual ftse bounce tomorrow could be testing recent highs tomorrow

[alphorn] 26/10/2016 15:12

March 2015 is pretty old stuff. "Due to a reduction in the interest rates" is quoted - well what about since then? Rates have collapsed.

Pretty strong rise on that news.

[skinny] 26/10/2016 15:08

"Skinny7 Oct '16 - 11:33 - 2645 of 2663 0 0 Edit

I closed the remainder of my long term holding earlier this week @£4.

I'll keep an eye on them, but I can't see where any short term upside may come from - having said that, Deutsche and Goldman still have buy notes."

The pension news maybe it!

[csmwssk12hu] 26/10/2016 14:50

Great news on pensions

[redbaron10] 26/10/2016 14:39

LOL.Oil price beginning to fall out of bed,so IAG gets bumped up.As if the OPEC meeting was ever going to get consensus over production cuts in Vienna 30/11 ! The oil market is the wild west for speculators and vested interests and transport shares like this are affected by the whims of these people!!

[redbaron10] 26/10/2016 09:46

We witnessing the usual speculators driving up share price prior to Friday's results,then the predictable dive in the share price regardless of how good the results may be? Same old same old

[chiefbrody] 20/10/2016 10:57

Fall way overdone. Single digit P/E. F/Y results will still be good.Q3 results soon. Guess that will set the tone for the coming months.

[philanderer] 20/10/2016 10:43

'FTSE slips back but IAG and easyJet climb after Lufthansa update'

[philanderer] 19/10/2016 11:57

(ShareCast News) - International Consolidated Airlines shares rose on Wednesday as Credit Suisse raised its rating on the stock to 'outperform' from 'neutral' and lifted its target price to 469p from 439p

[alphorn] 18/10/2016 11:49

Well done!

[younasm] 18/10/2016 11:34

The sharp moves this morning has allowed me to close both the short and long October options.400-420p by early Dec would be good for the rest of my (mostly long) positions.