The Flight Centre Travel Group Ltd (ASX: FLT) share price will be one to watch next week.
On August 25, the travel agent giant will release its full year results for FY 2022.
Ahead of the release, let's take a look to see what the market is expecting from the travel agent.
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What is expected from Flight Centre in FY 2022?
According to a recent trading update, for the 12 months ended June 30, Flight Centre is expecting to post another large EBITDA loss of between $180 million and $190 million.
However, this will be a big improvement on its underlying EBITDA loss of $337.9 million from FY 2021.
This improvement was driven by a much stronger performance in the second half, with the company expecting to be breakeven on an underlying EBITDA basis for the six months to June 30.
What are analysts saying?
According to a note out of Goldman Sachs, the broker is expecting Flight Centre to deliver a result in the middle of its guidance range. It also expects the company's cost outlook to be better than the market is forecasting.
It commented:
We expect FLT to report FY22 EBITDA loss at A$185.1mn, vs. guidance of A$180-190mn loss. We expect FY22 TTV to be at c. 43% of FY19 levels with EMEA and Americas leading recovery. In terms of activity type, we expect corporate travel to benefit from new account wins and strength in SME recovery.
We expect FLT to report revenue of c. A$1.1bn, c. 13% ahead of Visible Alpha Consensus Data. However, our operating cost outlook remains ahead of consensus outlook, and this remains the key focus area for us into FY22 results. Secondly, progress in corporate contract wins will be crucial to the longer term growth outlook for FLT. We expect corporate TTV to represent c. 53% of group TTV at full recovery in FY24 vs. 38% on a pre-COVID basis.
Is the Flight Centre share price good value?
Goldman is sitting on the fence with its rating on the Flight Centre share price. It currently has a neutral rating on its shares.
However, with a price target of $20.90, Goldman sees potential upside of 16% for investors over the next 12 months.
