Reaction to Cathay Pacific Earnings Looks Overdone -- Market Talk

Dow Jones08-08

0526 GMT - Cathay Pacific's 1H earnings aren't as weak as the market reaction suggests, Jefferies equity analyst Andrew Lee writes in a note. The carrier's shares closed 4% lower on Wednesday after it posted 1H earnings. Lee attributes the drop in 1H net profit mostly to a higher base a year earlier, when the result was flattered by a HK$1.9 billion one-off gain. Overall, more flights, seasonally strong cargo, and gains from Air China's recovery will drive 2H earnings higher, Lee says. Passenger short-haul yields have likely normalized due to competition, and long-haul yields could continue falling, but cargo and passenger yields are expected to remain above 2019 levels, Lee says. Jefferies keeps a buy rating and HK$9.80 target on the stock, which is 0.5% lower at HK$7.79 at the midday break. (kimberley.kao@wsj.com)

(END) Dow Jones Newswires

August 08, 2024 01:26 ET (05:26 GMT)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2457330896?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-08-08 13:26","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2457330896","market":"sg","top_or_hot":-1,"title":"Reaction to Cathay Pacific Earnings Looks Overdone -- Market Talk","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0526 GMT - Cathay Pacific's 1H earnings aren't as weak as the market reaction suggests, Jefferies equity analyst Andrew Lee writes in a note. The carrier's shares closed 4% lower on Wednesday after it posted 1H earnings. Lee attributes the drop in 1H net profit mostly to a higher base a year earlier, when the result was flattered by a HK$1.9 billion one-off gain. Overall, more flights, seasonally strong cargo, and gains from Air China's recovery will drive 2H earnings higher, Lee says. Passenger short-haul yields have likely normalized due to competition, and long-haul yields could continue falling, but cargo and passenger yields are expected to remain above 2019 levels, Lee says. Jefferies keeps a buy rating and HK$9.80 target on the stock, which is 0.5% lower at HK$7.79 at the midday break. (kimberley.kao@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  August 08, 2024 01:26 ET (05:26 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Reaction to Cathay Pacific Earnings Looks Overdone -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nReaction to Cathay Pacific Earnings Looks Overdone -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-08 13:26 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>0526 GMT - Cathay Pacific's 1H earnings aren't as weak as the market reaction suggests, Jefferies equity analyst Andrew Lee writes in a note. The carrier's shares closed 4% lower on Wednesday after it...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CPCAY","symbol_name":"国泰航空ADR","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2457330896","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2457330896","pubTimestamp":1723094760,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0526 GMT - Cathay Pacific's 1H earnings aren't as weak as the market reaction suggests, Jefferies equity analyst Andrew Lee writes in a note. The carrier's shares closed 4% lower on Wednesday after it posted 1H earnings. Lee attributes the drop in 1H net profit mostly to a higher base a year earlier, when the result was flattered by a HK$1.9 billion one-off gain. Overall, more flights, seasonally strong cargo, and gains from Air China's recovery will drive 2H earnings higher, Lee says. Passenger short-haul yields have likely normalized due to competition, and long-haul yields could continue falling, but cargo and passenger yields are expected to remain above 2019 levels, Lee says. Jefferies keeps a buy rating and HK$9.80 target on the stock, which is 0.5% lower at HK$7.79 at the midday break. ","collect":0,"end_time":0,"defaultTopTitle":"","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"CPCAY":"国泰航空ADR","00293":"国泰航空"},"translate_title":"对国泰航空盈利的反应似乎有些过度——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00293":0.9,"CPCAY":0.9},"content_text":"0526 GMT - Cathay Pacific's 1H earnings aren't as weak as the market reaction suggests, Jefferies equity analyst Andrew Lee writes in a note. The carrier's shares closed 4% lower on Wednesday after it posted 1H earnings. Lee attributes the drop in 1H net profit mostly to a higher base a year earlier, when the result was flattered by a HK$1.9 billion one-off gain. Overall, more flights, seasonally strong cargo, and gains from Air China's recovery will drive 2H earnings higher, Lee says. Passenger short-haul yields have likely normalized due to competition, and long-haul yields could continue falling, but cargo and passenger yields are expected to remain above 2019 levels, Lee says. Jefferies keeps a buy rating and HK$9.80 target on the stock, which is 0.5% lower at HK$7.79 at the midday break. (kimberley.kao@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  August 08, 2024 01:26 ET (05:26 GMT)\n\n\n  Copyright (c) 2024 Dow Jones & Company, Inc.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2457330896"}