Saga (LON:SAGA) Releases Quarterly Earnings Results

by · The Cerbat Gem

Saga (LON:SAGA – Get Free Report) announced its earnings results on Wednesday. The company reported GBX 20.50 earnings per share (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 Stock Performance

SAGA opened at GBX 779.67 on Friday. The stock has a market cap of £1.13 billion, a PE ratio of 324.86, a P/E/G ratio of 1.22 and a beta of 2.02. The company has a current ratio of 0.91, a quick ratio of 0.67 and a debt-to-equity ratio of 503.16. Saga has a 1 year low of GBX 237 and a 1 year high of GBX 797. The stock’s 50 day simple moving average is GBX 658.33 and its 200-day simple moving average is GBX 601.07.

Wall Street Analyst Weigh In

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

Read Our Latest Stock Report on SAGA

Insiders Place Their Bets

In other Saga news, insider Mike Hazell purchased 276 shares of the firm’s stock in a transaction on Wednesday, July 15th. The shares were purchased at an average price of GBX 652 per share, for a total transaction of £1,799.52. Also, insider Mark Watkins purchased 276 shares of the stock in a transaction on Wednesday, July 15th. The stock was acquired at an average cost of GBX 652 per share, for a total transaction of £1,799.52. Corporate insiders own 30.38% of the company’s stock.

About Saga

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

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