An all time high for Webjet (WEB) shares yesterday after an encouraging earnings forecast at the annual meeting.
The shares jumped more than 3.5% to close at $5.23, after hitting the all time high of $5.35 during trading.
Webjet forecast it will grow its earnings before interest, tax, depreciation and amortisation by 20% to $33.5 million in the current financial year based on strong growth in all of its business units.
That figure is well above the $30.8 million forecast from analysts and the new guidance after the company spends $3 million investment in its business-to-business (B2B) division which sells hotel products to travel agents.
Webjet shares are now up around 72% so far this year as investors reckon it will be one of the beneficiaries of the weaker Australian dollar.
WEB 1Y – Currency tailwinds lift Webjet
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The company’s CEO John Guscic told the meeting that total transaction value had been growing at more than 15% for the financial year so far, with online bookings outperforming the market more than fivefold.
Mr Guscic said the company’s international bookings are growing as a proportion of the company’s total tractions and Webjet is selling more higher-margin products such as packages, car hire and travel insurance, with growth higher than the overall booking rate.
Mr Guscic said the Asian market was also showing signs of improvement after a difficult year last year, with total transaction values up by more than 20% in the financial year so far.
