Bear of the Day: Hawaiian Holdings (HA)

by Brian Bolan

March 01, 2013 |
HA

Hawaiian Holdings (HA - Snapshot Report) - Snapshot Report) recently posted a large earnings miss and is a Zacks #5 Rank (Strong Sell).

Company Description

Hawaiian Holdings is an airline that offers daily service on North America routes between the state of Hawaii and Los Angeles, Oakland, Sacramento, San Diego, San Francisco, and San Jose, California; Las Vegas, Nevada; Phoenix, Arizona; Portland, Oregon; Seattle, Washington; and New York City, New York, as well as daily service on its Neighbor Island routes among the four islands of the state of Hawaii.

HA Big Miss

The most recent quarter saw the company miss the Zacks Consensus Estimate by a large amount. The company reported earnings of $0.00 per share while the consensus estimate was calling for $0.16. That translates to a $0.16 miss or 100%. The stock fell 13% in the session following the release.

Landscape Shifting

Larry Ellison recent bought a competing Hawaiian Airline, and while the multi billionaire has not disclosed any future plans for his latest purchase signals increased competition. It should be noted that Larry owns a large percentage of one of the Hawaiian Islands.

HA Sees Estimates Moving Lower

Estimates for HA have been sinking of late. The Zacks Consensus Estimate for 2012 for HA stood at $1.75 as of August 2012. The consensus has since moved lower to $1.15. Over the same time period estimates for 2013 have moved from $2.01 to $1.43.

The Chart

A quick look at the chart over the last three months shows the stock in a nose dive from 30,000 feet. The question here is whether or not the plane can make it to the airport or if it’s going to have to splash land in the ocean. The stock is a Zacks Rank #5 (Strong Sell)

Hawaiian Holdings - ticker HA>
 
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Brian Bolan is a Stock Strategist for Zacks.com. He is the Editor in charge of the Zacks Home Run Investor service, a Buy and Hold service where he recommends the stocks in the portfolio

Brian is also the editor of Follow The Money Trader a trading service that tracks institutional money flows and looks for great stock picks from that data.

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