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Hawaiian Holdings (HA) Q1 Earnings: A Beat in the Cards?
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Hawaiian Holdings Inc. (HA - Free Report) is slated to release its first-quarter 2017 results, after market close on Apr 20.
In the fourth quarter of 2016, the carrier posted a negative earnings surprise of 1.54%. The company posted adjusted earnings of $1.28 per share, which lagged the Zacks Consensus Estimate by 2 cents. Quarterly revenues of $633 million, however, surpassed our expectation of $627.6 million. Higher passenger revenues boosted the top line. Also, earnings and revenues improved on a year-over-year basis.
Earnings Whispers
Our proven model also shows that Hawaiian Holdings is likely to beat the Zacks Consensus Estimate this quarter because it has the perfect combination of two key ingredients.
Zacks ESP: The Earnings ESP for Hawaiian Holdings is +1.18% as the Most Accurate estimate is pegged at 86 cents while the Zacks Consensus Estimate is at 85 cents. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hawaiian Holdings carries a Zacks Rank #3 (Hold). Please note that stocks with Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
Meanwhile, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Hawaiian Holdings continues to thrive on the back of strong demand for air travel to the island of Hawaii. The carrier has an impressive history with respect to punctuality. In Mar 2017, the carrier received encouraging news on the labor front when its 670 pilots, represented by the Air Line Pilots Association (ALPA), approved a sixty-three month pay-related deal. We remind investors that the company inked three deals with various labor groups in 2016.
In fact, labor deals are much in vogue in the airline space. Not only Hawaiian Holdings, other players in the space like United Continental Holdings (UAL - Free Report) , Delta Air Lines (DAL - Free Report) and Southwest Airlines have also inked deals with various labor groups over the past few months.However, increasing costs might limit bottom-line growth at Hawaiian Holdings in the first quarter. Hawaiian Holdings expects cost per ASM (CASM), excluding fuel and special items, in the band of 6–8%.
Hawaiian Holdings expects operating revenue per ASM to rise 6.5–8%. Better-than-expected load factor and yield from the domestic market contributed to the bullish guidance. Fuel cost per gallon (economic) is expected in the band of $1.6 to $1.7.
Price Performance
Shares of Hawaiian Holdings outperformed the Zacks categorized Transportation-Airline industry on a month-to-date basis. The stock gained 4.09% while the industry increased 0.86% over the same period.
Another Stock to Consider
Investors interested in the broader transportation sector may also consider Kansas City Southern as our model shows it possesses the right combination of elements to post an earnings beat in its next release.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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Hawaiian Holdings (HA) Q1 Earnings: A Beat in the Cards?
Hawaiian Holdings Inc. (HA - Free Report) is slated to release its first-quarter 2017 results, after market close on Apr 20.
In the fourth quarter of 2016, the carrier posted a negative earnings surprise of 1.54%. The company posted adjusted earnings of $1.28 per share, which lagged the Zacks Consensus Estimate by 2 cents. Quarterly revenues of $633 million, however, surpassed our expectation of $627.6 million. Higher passenger revenues boosted the top line. Also, earnings and revenues improved on a year-over-year basis.
Earnings Whispers
Our proven model also shows that Hawaiian Holdings is likely to beat the Zacks Consensus Estimate this quarter because it has the perfect combination of two key ingredients.
Zacks ESP: The Earnings ESP for Hawaiian Holdings is +1.18% as the Most Accurate estimate is pegged at 86 cents while the Zacks Consensus Estimate is at 85 cents. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hawaiian Holdings carries a Zacks Rank #3 (Hold). Please note that stocks with Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
Meanwhile, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Hawaiian Holdings, Inc. Price and EPS Surprise
Hawaiian Holdings, Inc. Price and EPS Surprise | Hawaiian Holdings, Inc. Quote
Factors at Play
Hawaiian Holdings continues to thrive on the back of strong demand for air travel to the island of Hawaii. The carrier has an impressive history with respect to punctuality. In Mar 2017, the carrier received encouraging news on the labor front when its 670 pilots, represented by the Air Line Pilots Association (ALPA), approved a sixty-three month pay-related deal. We remind investors that the company inked three deals with various labor groups in 2016.
In fact, labor deals are much in vogue in the airline space. Not only Hawaiian Holdings, other players in the space like United Continental Holdings (UAL - Free Report) , Delta Air Lines (DAL - Free Report) and Southwest Airlines have also inked deals with various labor groups over the past few months.However, increasing costs might limit bottom-line growth at Hawaiian Holdings in the first quarter. Hawaiian Holdings expects cost per ASM (CASM), excluding fuel and special items, in the band of 6–8%.
Hawaiian Holdings expects operating revenue per ASM to rise 6.5–8%. Better-than-expected load factor and yield from the domestic market contributed to the bullish guidance. Fuel cost per gallon (economic) is expected in the band of $1.6 to $1.7.
Price Performance
Shares of Hawaiian Holdings outperformed the Zacks categorized Transportation-Airline industry on a month-to-date basis. The stock gained 4.09% while the industry increased 0.86% over the same period.
Another Stock to Consider
Investors interested in the broader transportation sector may also consider Kansas City Southern as our model shows it possesses the right combination of elements to post an earnings beat in its next release.
Kansas City Southern has an Earnings ESP of +0.86% and a Zacks Rank #3. The company will report its first-quarter 2017 results on Apr 21. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>.