Saga (LON:SAGA) Announces Quarterly Earnings Results

Saga (LON:SAGA) posted its quarterly earnings data on Wednesday. The company reported GBX 20.50 EPS for the quarter, Digital Look Earnings reports. Saga had a net margin of 3.25% and a return on equity of 23.50%.

Here are the key takeaways from Saga’s conference call:

• Strong first-half performance: Underlying revenue rose 14% to £366 million, while underlying profit before tax nearly doubled to £46.6 million, driven by growth across travel and insurance.
• Saga raised full-year underlying profit guidance to £65 million–£70 million, versus £44 million last year, and said it now expects to reach its medium-term targets of £100 million profit and leverage below two times ahead of January 2030.
• Ocean Cruise remained the main growth engine, with profit before tax up 38%, per diems up 13% and strong forward bookings supporting continued pricing power; group net debt fell to £429.1 million and leverage improved to 2.7 times.
• The insurance transformation is gaining traction, with Insurance Broking profit before tax up 75%, policies in force up 5% and lower operating costs expected as the Ageas partnership and simpler operating model mature.
• Management flagged risks from low river levels, which are expected to reduce full-year River Cruise profit, and Middle East disruption affecting the Holidays business; Ageas-related exceptional costs will also continue next year, albeit at a lower level.

Saga Price Performance

LON:SAGA traded down GBX 1.33 during mid-day trading on Friday, hitting GBX 779.67. 522,615 shares of the company’s stock traded hands, compared to its average volume of 3,001,618. The firm’s 50 day simple moving average is GBX 658.33 and its 200 day simple moving average is GBX 601.07. The company has a market cap of £1.13 billion, a PE ratio of 324.86, a price-to-earnings-growth ratio of 1.22 and a beta of 2.02. Saga has a 1 year low of GBX 237 and a 1 year high of GBX 797. The company has a debt-to-equity ratio of 503.16, a quick ratio of 0.67 and a current ratio of 0.91.

Insiders Place Their Bets

In other news, insider Mike Hazell acquired 276 shares of the business’s stock in a transaction dated Wednesday, July 15th. The stock was acquired at an average price of GBX 652 per share, with a total value of £1,799.52. Also, insider Mark Watkins purchased 276 shares of Saga stock in a transaction on Wednesday, July 15th. The shares were acquired at an average cost of GBX 652 per share, for a total transaction of £1,799.52. 30.38% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on SAGA shares. Berenberg Bank upped their price target on Saga from GBX 1,025 to GBX 1,130 and gave the stock a “buy” rating in a report on Wednesday. Deutsche Bank Aktiengesellschaft increased their price objective on Saga from GBX 795 to GBX 855 and gave the company a “buy” rating in a report on Thursday. Two investment analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company has an average rating of “Buy” and an average target price of GBX 992.50.

Saga Company Profile

Saga exists to deliver exceptional experiences for our customers every day, whilst being a driver of positive change in our markets and communities.