The Flight Centre Travel Group (ASX:FLT) share price fell 14 per cent in August despite reporting record sales for the year ending June 30, 2018.
A record total transaction value (TTV) of $21.8 billion was achieved, which was 8.5 per cent higher than the previous record amount in FY17.
Flight Centre posted a record underlying profit before tax of $384.7 million, 16.8 per cent higher than FY17. Earnings per share (EPS) were $2.79 and the full year fully franked dividend per share was $1.67.
Flight Centre shares had a wonderful run in 2018, rising from $44 to as high as $70 during August.
Although not providing specific forward guidance for FY19, Flight Centre did say it expects further profit and TTV growth in the year ahead.
The fall in Flight Centre shares is likely a case of profit taking, given how far FLT shares had run in 2018.
Since the end of August, Flight Centre shares have continued to drift lower in a falling share market, the ASX 200 constituent now trading at $56.49.
Flight Centre shares are not overly cheap, trading on a price to earnings (P/E) ratio of around 20 times earnings. FLT shares trade on a fully franked dividend yield of 2.96 per cent.
The company will provide more specific FY19 guidance at its AGM in October.