SSP Group, the food and beverage operator that runs concessions in airports and train stations worldwide, saw its shares fall 3% to 182p on Friday despite brokers pointing to a broadly resilient full-year performance.
The sell-off followed the company's fourth-quarter update, which showed total sales up 3% in the three months to September, including like-for-like (LFL) growth of 4%.
For the full year to 30 September, total sales rose 5% on a constant currency basis, with LFL growth of 4% and net new site gains contributing a further 1%.
The sting came from operating profit guidance of around £230 million for the year, below analyst forecasts of £234 million to £239 million, with North American passenger volumes described as subdued through what proved a soft summer season.
The impact on earnings per share was cushioned by £100 million of share buybacks, which have now been completed and extended by a further £50 million for 2027.
Peel Hunt, which has a Buy rating and a 275p target on the stock, cut its 2026 pre-tax profit forecast by £4 million to £201 million but upgraded its EPS estimate to 14.0p from 13.7p, reflecting the buyback benefit.
The broker held its 2027 EPS forecast at 15.8p, assuming 2.5% LFL sales growth, supported by easier comparatives in Asia-Pacific and the Middle East and Eastern Europe regions in the second half.
Panmure Liberum was more upbeat, reiterating its Buy rating and 300p price target and describing the outcome as "resilient against a challenging backdrop".
The broker noted UK and Ireland LFL sales surged 9% in the quarter, with Continental Europe recovering at 3% and North America and the Middle East lagging at 2% and 1% respectively.
Panmure Liberum said Gulf traffic had already recovered to 90% of prior year levels and highlighted an improvement in Continental European margins to around 3% from 2.2%.
Free cash flow of around £70 million came in below Panmure Liberum's £100 million forecast, though the broker noted the improvement was operationally driven and reflected lower capital expenditure.
Panmure Liberum lifted its 2026 EPS estimate to 13.9p from 13.7p and its 2027 estimate to 16.6p from 16.4p, both benefiting from the extended buyback programme.
SSP shares have traded between 140p and 240p over the past year.
