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GOL Linhas (GOL) Reports Profit in Q2; Revenues Decline
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GOL Linhas Aereas Inteligentes S.A. reported second-quarter 2016 financial results wherein net profits totaled R$309.5 million (approximately $91.0 million). In the year-ago quarter, the company had reported a net loss of R$354.9 million.
Revenues
Net revenue declined 2% year over year to R$2,089 million (approximately $614.4 million). Cargo revenues improved 4.8%, while passenger revenues declined 3%.
Operational Statistics
Revenue passenger kilometers (RPK) – implying revenue generated per kilometer per passenger – deteriorated 11.2% year over year, mainly due to a decrease of 10.6% in International RPK and 11.2% in domestic RPK.
Available seat kilometers (ASK) – the measure of an airline's passenger carrying capacity – fell 9.3% year over year owing to a 12.2% decline in international ASK and 8.9% in domestic ASK.
During the reported quarter, the company’s total load factor (percentage of seats filled with passengers) stood at 75.2%, compared with 76.8% in the year-ago quarter. Domestically, load factor fell 200 basis points (bps) while internationally, the figure improved 110 bps.
Exiting the second quarter of 2016, GOL Linhas had cash and cash equivalents of R$607 million (approximately $178.5 million), compared with R$1,072 million (approximately $315.3 million) at 2015-end. Long-term debt totaled R$5,956 million (roughly $1,751.8 million) in the quarter, compared with R$7,908 million (approximately $2,325.9 million) at 2015-end.
Margins and Outlook
Operating costs and expenses in the quarter were down 5% to R$2,260.8 million (approximately $665.0 million). Total volume of departures fell 21% while supply deteriorated 20.8% on a year-over-year basis.
Meanwhile, GOL Linhas maintained its outlook at 15–18% decline in departures for 2016, while supply is projected to fall 5–8%.
Zacks Rank and Stocks to Consider
GOL Linhas currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the transportation sector include Copa Holdings SA (CPA - Free Report) with a Zacks Rank #1 (Strong Buy), and Dynagas LNG Partners LP (DLNG - Free Report) and SkyWest Inc. (SKYW - Free Report) with a Zacks Rank #2 (Buy).
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GOL Linhas (GOL) Reports Profit in Q2; Revenues Decline
GOL Linhas Aereas Inteligentes S.A. reported second-quarter 2016 financial results wherein net profits totaled R$309.5 million (approximately $91.0 million). In the year-ago quarter, the company had reported a net loss of R$354.9 million.
Revenues
Net revenue declined 2% year over year to R$2,089 million (approximately $614.4 million). Cargo revenues improved 4.8%, while passenger revenues declined 3%.
Operational Statistics
Revenue passenger kilometers (RPK) – implying revenue generated per kilometer per passenger – deteriorated 11.2% year over year, mainly due to a decrease of 10.6% in International RPK and 11.2% in domestic RPK.
Available seat kilometers (ASK) – the measure of an airline's passenger carrying capacity – fell 9.3% year over year owing to a 12.2% decline in international ASK and 8.9% in domestic ASK.
During the reported quarter, the company’s total load factor (percentage of seats filled with passengers) stood at 75.2%, compared with 76.8% in the year-ago quarter. Domestically, load factor fell 200 basis points (bps) while internationally, the figure improved 110 bps.
GOL LINHAS-ADR Price, Consensus and EPS Surprise
GOL LINHAS-ADR Price, Consensus and EPS Surprise | GOL LINHAS-ADR Quote
Financials
Exiting the second quarter of 2016, GOL Linhas had cash and cash equivalents of R$607 million (approximately $178.5 million), compared with R$1,072 million (approximately $315.3 million) at 2015-end. Long-term debt totaled R$5,956 million (roughly $1,751.8 million) in the quarter, compared with R$7,908 million (approximately $2,325.9 million) at 2015-end.
Margins and Outlook
Operating costs and expenses in the quarter were down 5% to R$2,260.8 million (approximately $665.0 million). Total volume of departures fell 21% while supply deteriorated 20.8% on a year-over-year basis.
Meanwhile, GOL Linhas maintained its outlook at 15–18% decline in departures for 2016, while supply is projected to fall 5–8%.
Zacks Rank and Stocks to Consider
GOL Linhas currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the transportation sector include Copa Holdings SA (CPA - Free Report) with a Zacks Rank #1 (Strong Buy), and Dynagas LNG Partners LP (DLNG - Free Report) and SkyWest Inc. (SKYW - Free Report) with a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>