Yahoo Finance American Airlines Preview: EPS Beat Inbound?
Earnings season has picked up a notable amount of steam, with a significant amount of companies slated to report this week. This week is a busy one in particular, with every sector of the economy being represented.
Soon, on Thursday, April 27th, we’ll hear from American Airlines AAL before the market opens. We’ve already heard from a few peers, including Delta Air Lines DAL and United Airlines UAL. Below is a chart illustrating the performance of all three year-to-date, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
It raises a valid question: how does American Airlines shape up heading into its quarterly release? We can use results from DAL and UAL as a small guide. Let’s take a closer look.
Delta Air Lines
Delta Air Lines posted somewhat weak results, falling short of the Zacks Consensus EPS Estimate by roughly 14%. Further, quarterly revenue totaled $12.8 billion, roughly in line with expectations and improving more than 30% year-over-year.
Image Source: Zacks Investment Research
Despite the miss, DAL shares found buyers post-earnings, as we can see illustrated in the chart below. The euphoria seems to have worn off a bit though, with shares now in a downtrend.
Image Source: Zacks Investment Research
Following the release, analysts have become bullish on DAL’s upcoming quarterly release in mid-July, with six positive earnings estimate revisions hitting the tape as of late.
Image Source: Zacks Investment Research
United Airlines
United Airlines posted better-than-expected results, exceeding the Zacks Consensus EPS Estimate by nearly 14%. In addition, United Airlines generated $11.4 billion in revenue throughout the period, a tick above expectations and improving nearly 50% year-over-year.
Image Source: Zacks Investment Research
Like DAL, the market took the results in stride, sending shares soaring post-earnings. Still, they’ve since cooled notably, as we can see below.
Image Source: Zacks Investment Research
Analysts must’ve been impressed with the quarterly results, causing them to raise their expectations notably for UAL’s upcoming release in mid-July.
Image Source: Zacks Investment Research
American Airlines
Analysts have been bullish for the quarter to be reported, with the quarterly EPS Estimate being revised 500% higher since February of this year. The Zacks Consensus EPS Estimate indicates a 100% jump in earnings Y/Y.
Image Source: Zacks Investment Research
Further, the company is forecasted to have generated roughly $12.3 billion in revenue, implying an improvement of more than 35% from year-ago quarterly sales of $8.9 billion. The quarterly revenue estimate has been revised 1.4% higher since February, reflecting optimism.
Image Source: Zacks Investment Research
Bottom Line
As we can see in the charts above, investors initially cheered on results of Delta Air Lines DAL and United Airlines UAL. Since the releases, the euphoria seems to have faded, with shares of both companies facing selling pressure.
American Airlines is expected to see a notable recovery in earnings, a reflection of a recovery in travel demand and lower fuel costs providing a nice boost. Heading into the release, American Airlines AAL is a Zacks Rank #2 (Buy) with an Earnings ESP Score of 85.7%.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
