IAG Share Price Pre-Earnings Preview: Will This Rebound Last?

Summary:

In this IAG share price forecast, we look at what to expect when the company publishes its quarterly and half year results on Friday

The IAG share price has crawled back after it declined to a multi-month low of 157p last week. Shares of the British Airways owner are trading at 181p, which is about 16% above the lowesr level last week. Other airline stocks like EasyJet, Ryanair, and Rolls-Royce have also done well.

IAG earnings preview

IAG will be among the many FTSE 100 companies that will publish their results this week. It will release its earnings on Friday before the London market opens. Other companies that released their earnings this week are Ryanair, Wizz Air, and Barclays.

Investors expect that IAG had a relatively good quarter as the airline industry rebounded. As shown below, the consensus view among 26 analysts who track the company is that its operating loss was more than 1.03 billion euro. The most bearish analyst expects that the firm’s loss increased to more than 1.41 billion euros while the most optimistic view is the company having a loss of 850 million euros.

Other European airlines reported optimistic results. For example, Ryanair reported a loss of more than 273 million and expressed optimism that the industry is on a recovery path. Similarly, Wizz Air made a loss and forecasted that it expects that airline numbers will go back to pre-pandemic levels by August.Advertisementshttps://688d80898b3342ead2ac25e635ae7655.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html

Meanwhile, the IAG share price will react to the news that US travellers can land in England and Scotland. This is a notable step considering that British Airways makes a lot of money from the TransAtlantic route. Still, the US is still barring planes from the UK since the US is yet to lift its travel restrictions. So, what next for the IAG share price?

IAG share price analysis

My latest prediction of the IAG stock was wrong. On Monday, I wrote that the share price would likely maintain a bearish momentum towards its earnings. This was wrong since the stock managed to bounce back after the Wizz Air and Ryanair earnings.

A look at the four-hour chart shows that the stock has formed an inverted head and shoulders pattern, which is usually a positive thing. It has also crossed the 50-day and 25-day EMAs while the MACD indicator has kept rising. Therefore, the stock will likely keep rising as bulls target the lower side of the triangle pattern at around 200p. On the flip side, a drop below 170p will invalidate this view.