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Transportation Stocks' Q1 Earnings on May 10: CPA, GOL, RLGT
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The Q1 earnings season is in its last leg with majority of the companies having already unveiled their quarterly financial numbers. The picture to have emanated is an extremely healthy one and this earnings season remains on track to end on a strong note, displaying substantial growth.
The already reassuring picture is expected to get rosier by the end of this week. During the course, 712 companies, including 43 S&P 500 players are expected to report their financial figures. Consequently, we will have reports from 455 S&P 500 players by the time the current week ends as 412 companies had already posted results as of May 5.
According to our latest Earnings Preview, the top and bottom line for the S&P 500 companies are projected to expand 6.2% and 12.7%, respectively, at the end of Q1. In fact, both the figures compared favorably with the readings in Q4, when bottom line expanded 7.4% and revenues grew 4.8%. The progress in the quarterly performance can be attributed to a turnaround in the economy, improved job market scenario among other factors.
Unfortunately, the transportation sector (one of the 16 Zacks sectors) does not share this overall healthy picture and has emerged as a major laggard. In fact, the sector that has seen all its S&P 500 players reporting in the current cycle, ended the season with the bottom line contracting 17.9%, due to high costs.
While increasing labor costs have hurt the bottom line (particularly those of airlines), rising fuel prices also does not augur well for transports. This is because costs associated with oil are considered to be one of the major input costs for any transportation company. Notably, we have witnessed the key sector participants like United Continental Holdings (UAL - Free Report) , RyderSystem (R - Free Report) and Expeditors (EXPD - Free Report) reporting significant year-over-year bottom-line decline in Q1.
With all S&P 500 transports having already reported, investors interested in the space will eagerly await Q1 reports from non-S&P 500 participants like Copa Holdings (CPA - Free Report) , GOL Linhas Aéreas Inteligentes and Radiant Logistics, Inc. (RLGT - Free Report) scheduled to be out on May 10.
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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
In this context, the Panama City-based carrier, Copa Holdings’ Zacks Rank #2 (Buy) and an Earnings ESP of +3.43% (the Most Accurate estimate exceeds the Zacks Consensus Estimate of $2.33 per share by 8 cents) makes us reasonably confident of an earnings beat in this quarter (Read more: Copa Holdings Q1 Earnings: Is a Beat in the Cards?)
Brazilian carrier, GOL Linhas carries a Zacks Rank #3. Nevertheless, its Earnings ESP of 0.00% (both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 15 cents per share) complicates our surprise prediction in the to-be-reported quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Gol Linhas Aereas Inteligentes S.A. Price and EPS Surprise
Radiant Logistics, Inc. provides multi-modal transportation and logistics services primarily in the U.S. The chances of the company reporting better-than-expected earnings per share in Q1 are dim despite its Zacks Rank #3. This is because it has Earnings ESP of 0.00% (both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 1 cent per share).
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Transportation Stocks' Q1 Earnings on May 10: CPA, GOL, RLGT
The Q1 earnings season is in its last leg with majority of the companies having already unveiled their quarterly financial numbers. The picture to have emanated is an extremely healthy one and this earnings season remains on track to end on a strong note, displaying substantial growth.
The already reassuring picture is expected to get rosier by the end of this week. During the course, 712 companies, including 43 S&P 500 players are expected to report their financial figures. Consequently, we will have reports from 455 S&P 500 players by the time the current week ends as 412 companies had already posted results as of May 5.
According to our latest Earnings Preview, the top and bottom line for the S&P 500 companies are projected to expand 6.2% and 12.7%, respectively, at the end of Q1. In fact, both the figures compared favorably with the readings in Q4, when bottom line expanded 7.4% and revenues grew 4.8%. The progress in the quarterly performance can be attributed to a turnaround in the economy, improved job market scenario among other factors.
Unfortunately, the transportation sector (one of the 16 Zacks sectors) does not share this overall healthy picture and has emerged as a major laggard. In fact, the sector that has seen all its S&P 500 players reporting in the current cycle, ended the season with the bottom line contracting 17.9%, due to high costs.
While increasing labor costs have hurt the bottom line (particularly those of airlines), rising fuel prices also does not augur well for transports. This is because costs associated with oil are considered to be one of the major input costs for any transportation company. Notably, we have witnessed the key sector participants like United Continental Holdings (UAL - Free Report) , Ryder System (R - Free Report) and Expeditors (EXPD - Free Report) reporting significant year-over-year bottom-line decline in Q1.
With all S&P 500 transports having already reported, investors interested in the space will eagerly await Q1 reports from non-S&P 500 participants like Copa Holdings (CPA - Free Report) , GOL Linhas Aéreas Inteligentes and Radiant Logistics, Inc. (RLGT - Free Report) scheduled to be out on May 10.
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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
In this context, the Panama City-based carrier, Copa Holdings’ Zacks Rank #2 (Buy) and an Earnings ESP of +3.43% (the Most Accurate estimate exceeds the Zacks Consensus Estimate of $2.33 per share by 8 cents) makes us reasonably confident of an earnings beat in this quarter (Read more: Copa Holdings Q1 Earnings: Is a Beat in the Cards?)
Copa Holdings, S.A. Price and EPS Surprise
Copa Holdings, S.A. Price and EPS Surprise | Copa Holdings, S.A. Quote
Brazilian carrier, GOL Linhas carries a Zacks Rank #3. Nevertheless, its Earnings ESP of 0.00% (both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 15 cents per share) complicates our surprise prediction in the to-be-reported quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Gol Linhas Aereas Inteligentes S.A. Price and EPS Surprise
Gol Linhas Aereas Inteligentes S.A. Price and EPS Surprise | Gol Linhas Aereas Inteligentes S.A. Quote
Radiant Logistics, Inc. provides multi-modal transportation and logistics services primarily in the U.S. The chances of the company reporting better-than-expected earnings per share in Q1 are dim despite its Zacks Rank #3. This is because it has Earnings ESP of 0.00% (both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 1 cent per share).
Radiant Logistics, Inc. Price and EPS Surprise
Radiant Logistics, Inc. Price and EPS Surprise | Radiant Logistics, Inc. Quote
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>