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Transports to Watch for Earnings on Apr 27: AAL, UNP & More
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The picture that has been unfolding in the Q1 earnings season is a rosy one so far. According to our Earnings Preview report, this positive scenario is expected to continue. The above report projects S&P 500 companies’ bottom-line growth of 9.1% year over year. Additionally, stocks in the highly sought-after fraternity are projected to end Q1 with their top line expanding 6%. Both figures compared favorably to the readings in Q4, when bottom line expanded 7.4% (highest growth in almost two years) and revenues grew 4.8%.
In fact, 10 of the 16 Zacks sectors are expected to see their bottom line expand on a year-over-year basis at the end of Q1. However, the transportation sector, does not share this rosy picture with the sectoral earnings projected to contract 20% due to higher costs. In fact, the bottom line for key sectoral participants like Delta Air Lines (DAL - Free Report) and United Continental Holdings (UAL - Free Report) , have contracted 41.7% and 66.7% in Q1, both on a year-over-year basis. Nonetheless, the picture with respect to revenues is much better. The top line for the sector is projected to expand at 6.1%.
Given this backdrop, investors interested in the transportation space will keenly await Q1 reports from key sector participants like American Airlines Group (AAL - Free Report) , Union Pacific Corporation (UNP - Free Report) ,Southwest Airlines Co. (LUV - Free Report) and SkyWest, Inc. (SKYW - Free Report) , which are scheduled for Apr 27.
According to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings surprise.
American Airlines Group, headquartered in Fort Worth, TX, operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe. This legacy carrier has high chances of beating the Zacks Consensus Estimate in Q1, as it currently has an Earnings ESP of +1.75% (Most Accurate estimate is 1 cent above the Zacks Consensus Estimate of 57 cents) and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In fact, our model had predicted earnings beat earlier as well. Previously, when we issued its Q1 earnings preview article, the company had an Earnings ESP of +3.64%, while the Zacks Rank remained the same. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
American Airlines Group, Inc. Price and EPS Surprise
Based in Omaha, NE, Union Pacific Corporation is a renowned U.S. Class 1 railroad company. The chances of this company beating the Zacks Consensus Estimate in Q1 are less, despite its Zacks Rank #3. This is because it has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.23 per share (Read more: Union Pacific Q1 Earnings: Surprise in Store?).
SkyWest, through its subsidiaries, operates a regional airline in the U.S. This St. George, UT-based company has less chances of beating the Zacks Consensus Estimate in Q1, despite its Zacks Rank #3. This is because it has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 52 cents per share.
The Dallas-based Southwest Airlines is a low-cost carrier, whose chances of beating the Zacks Consensus Estimate in Q1 are less as well, despite its Zacks Rank #3. This is because it has an Earnings ESP of 0.00% as the Most Accurate estimate is in line with the Zacks Consensus Estimate of 62 cents per share (Read more: What to Expect from Southwest Airlines in Q1 Earnings?).
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Transports to Watch for Earnings on Apr 27: AAL, UNP & More
The picture that has been unfolding in the Q1 earnings season is a rosy one so far. According to our Earnings Preview report, this positive scenario is expected to continue. The above report projects S&P 500 companies’ bottom-line growth of 9.1% year over year. Additionally, stocks in the highly sought-after fraternity are projected to end Q1 with their top line expanding 6%. Both figures compared favorably to the readings in Q4, when bottom line expanded 7.4% (highest growth in almost two years) and revenues grew 4.8%.
In fact, 10 of the 16 Zacks sectors are expected to see their bottom line expand on a year-over-year basis at the end of Q1. However, the transportation sector, does not share this rosy picture with the sectoral earnings projected to contract 20% due to higher costs. In fact, the bottom line for key sectoral participants like Delta Air Lines (DAL - Free Report) and United Continental Holdings (UAL - Free Report) , have contracted 41.7% and 66.7% in Q1, both on a year-over-year basis. Nonetheless, the picture with respect to revenues is much better. The top line for the sector is projected to expand at 6.1%.
Given this backdrop, investors interested in the transportation space will keenly await Q1 reports from key sector participants like American Airlines Group (AAL - Free Report) , Union Pacific Corporation (UNP - Free Report) ,Southwest Airlines Co. (LUV - Free Report) and SkyWest, Inc. (SKYW - Free Report) , which are scheduled for Apr 27.
According to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings surprise.
American Airlines Group, headquartered in Fort Worth, TX, operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe. This legacy carrier has high chances of beating the Zacks Consensus Estimate in Q1, as it currently has an Earnings ESP of +1.75% (Most Accurate estimate is 1 cent above the Zacks Consensus Estimate of 57 cents) and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In fact, our model had predicted earnings beat earlier as well. Previously, when we issued its Q1 earnings preview article, the company had an Earnings ESP of +3.64%, while the Zacks Rank remained the same. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
American Airlines Group, Inc. Price and EPS Surprise
American Airlines Group, Inc. Price and EPS Surprise | American Airlines Group, Inc. Quote
Based in Omaha, NE, Union Pacific Corporation is a renowned U.S. Class 1 railroad company. The chances of this company beating the Zacks Consensus Estimate in Q1 are less, despite its Zacks Rank #3. This is because it has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.23 per share (Read more: Union Pacific Q1 Earnings: Surprise in Store?).
Union Pacific Corporation Price and EPS Surprise
Union Pacific Corporation Price and EPS Surprise | Union Pacific Corporation Quote
SkyWest, through its subsidiaries, operates a regional airline in the U.S. This St. George, UT-based company has less chances of beating the Zacks Consensus Estimate in Q1, despite its Zacks Rank #3. This is because it has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 52 cents per share.
SkyWest, Inc. Price and EPS Surprise
SkyWest, Inc. Price and EPS Surprise | SkyWest, Inc. Quote
The Dallas-based Southwest Airlines is a low-cost carrier, whose chances of beating the Zacks Consensus Estimate in Q1 are less as well, despite its Zacks Rank #3. This is because it has an Earnings ESP of 0.00% as the Most Accurate estimate is in line with the Zacks Consensus Estimate of 62 cents per share (Read more: What to Expect from Southwest Airlines in Q1 Earnings?).
Southwest Airlines Company Price and EPS Surprise
Southwest Airlines Company Price and EPS Surprise | Southwest Airlines Company Quote
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>