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Why easyJet, William Hill, and Lonrho Should Lag the FTSE 100 Today

By Alan Oscroft - Apr 5, 2013 at 8:42AM

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easyJet, William Hill, and Lonrho are all falling.

LONDON -- The FTSE 100 (INDEX: ^FTSE) is sliding today as fears of poor U.S. jobs data spread gloom. After the index of top U.K. shares turned tail yesterday afternoon to end the day at 6,344 points, it has dropped another 1.3% to 6,263 as of 8:20 a.m. EDT. That's the third losing session in a row, and it's sending the index still further from its five-year high of 6,534 on March 12.

But even on a bad day there are, of course, individual shares falling faster than the indexes. Here are three on the way down today.

Shares in easyJet have been soaring this year, gaining 130% over the 12 months up to yesterday. But today they're down 6% to 1,031 pence after the budget airline revised its outlook for the year to March 31. We should still see capacity growth for the period, but January's estimate of 3.5% has been scaled back to 3.3%. But estimates of revenue per seat have strengthened, with a rise of 8.5% beating January's guidance of 6% to 8%, and ex-fuel cost per seat should hit the low end of previous expectations, up 3.5%.

Estimates for a first-half loss of between 50 million pounds and 75 million pounds have been refined to a range of 60 million pounds to 65 million pounds.

William Hill (WMH)
Results of a new rights issue sent William Hill shares down 1.4% to 377 pence. Acceptances for 98% of 154 million new shares had been received by yesterday's deadline, and they should be appearing in CREST accounts today.

Although the shares are down today, they are still up more than 50% over the past 12 months, and forecasts for the year to December put them on a pretty average forward P/E of 14. There's a dividend yield of about 3% expected.

Lonrho (LSE: LONR)
Lonrho shareholders have been having a dreadful time, with their shares about 50% down over the past 12 months. There was a significant pick-up on full-year results day last week, but today the price is down again, falling 1% to 5.9 pence after the firm announced a new 2.5 million pound share placing.

H21 Macro has taken up the 40.3 million new shares at a price of 6.2 pence each, with the shares expected to be admitted to the official list on April 10.

Finally, reliable dividends can more than compensate for the day-to-day ups and downs of share prices. So how about a company that's offering a 5.7% yield and which could be set for some nice share-price appreciation, too? It's the subject of our brand-new report "The Motley Fool's Top Income Share For 2013," which you can get completely free of charge -- but it will only be available for a limited period, so click here to get your copy today.

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