Cathay Pacific Airways (293) Earnings: October Passenger Traffic Surges 29%

Cathay Pacific Airways on Smartkarma

Analysts on Smartkarma, such as Osbert Tang, CFA, and David Blennerhassett, have provided positive insights on Cathay Pacific Airways (293 HK). Tang’s report, “Cathay Pacific (293 HK): Buyback of Qatar-Owned Shares Is Positive,” highlights the company’s buyback of Qatar Airways’ stake as a move that is expected to enhance earnings per share (EPS) and return on equity (ROE) for FY26 and FY27. This action is seen to support valuations and potentially lead to inclusion in the HSI again in the future. The consensus suggests upside surprise in earnings, with the potential for significant upside in trading value.

On the other hand, Blennerhassett’s analysis, “Cathay (293 HK) Takes Out Qatar Airway’s Stake,” emphasizes that the buyback is estimated to boost Cathay’s EPS by around 10.5%. While viewing this as a favorable development, Blennerhassett notes that it may not be a high conviction trade for him. The acquisition of Qatar Airways’ stake at a reduced price compared to the initial acquisition cost in 2017 is seen as a strategic move that impacts the shareholding structure of Cathay Pacific Airways, with implications for Swire Pacific and Air China’s stakes in the company.

A look at Cathay Pacific Airways Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Cathay Pacific Airways appears to have a promising long-term outlook. With a Growth score of 5, the company is expected to show strong potential for expansion and development in the future. This suggests that Cathay Pacific Airways is well-positioned to capitalize on growth opportunities within the aviation industry and potentially increase its market share.

Additionally, a high Dividend score of 4 indicates that Cathay Pacific Airways may offer attractive returns to investors through dividend payouts. This could make the company an appealing option for those seeking consistent income from their investment. Combined with a Momentum score of 4, which implies positive market sentiment and performance, Cathay Pacific Airways could be a stock to watch for those looking for a balance of growth and stability in their investment portfolio.

### Cathay Pacific Airways Limited operates scheduled airline services. The Company also provides related services, including airline catering, aircraft handling, and engineering. ###

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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