Qantas’ share price up on stock buyback and higher dividend announcement
Investors disregarded the weaker-than-expected results as the airline said it plans to buy back up 79.7 million shares in an off-market tender and announced a higher dividend pay-out.
Australian airline Qantas Airways’ share price rose as much as 4.5% on Thursday after the group proposed an A$400 million share buyback and higher dividend pay-out as it revealed its full-year results.
This is after the group posted a 17% fall in annual net profit, down from A$1.57 billion to A$1.30 billion for the year ended June 30, driven by fuel costs and a weaker Australian dollar. The number was below analysts’ estimates of A$1.36 billion.
Qantas posted a 5% rise in revenue, at A$17.97 billion.
Investors disregarded the weaker-than-expected results as the airline said it plans to buy back up 79.7 million shares in an off-market tender, which is worth almost A$400 million at its most recent share price. It also declared a final dividend of 13 Australian cents per share for the period, up from 10 cents.
The group’s shares rose 4.5% in midday trade but cooled later to close the day’s session 1.38% higher, at A$5.86.
The airline said that it would keep its capacity flat to follow with a lacklustre Australian economy.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
