Flight Centre Travel Group Ltd (ASX: FLT) shares will be on focus next week when the travel agent giant releases its half-year results.
Ahead of the release on Wednesday, let's see what the market is expecting.
Flight Centre half-year results preview
According to a note out of Goldman Sachs, its analysts are expecting the company to report explosive growth for the first half.
Its analysts have pencilled in sales growth of 28.5% to $1,288.1 million and earnings before interest and tax (EBIT) growth of 344.9% over the prior corresponding period. This is modestly higher than the market consensus estimate.
As for dividends, the broker is expecting a 23 cents per share dividend for the full year.
Flight Centre's dividends are usually weighted to the second half, so this could mean an interim dividend in the region of 8 cents per share.
Elsewhere, analysts at Morgans recently commented on their expectations for the first half of FY 2024. They said:
Earnings are seasonally skewed to the 2H (even more so post the Scott Dunn acquisition). 2Q NPBT was guided to be below the 1Q of A$54m. In line with seasonal trends, 1H cashflow is usually weak.
Should you buy Flight Centre shares?
At present, Goldman Sachs is sitting on the fence with this one. It has a neutral rating and $20.70 price target on the company's shares. This implies potential downside of 5% from current levels.
Morgans, on the other hand, is feeling more upbeat. It has an add rating and $26.00 price target on Flight Centre's shares.
If the broker is on the money with this recommendation, it would mean upside of 19% for investors over the next 12 months.
