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Is Hawaiian Holdings (HA) Likely to Beat Earnings in Q2?

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Hawaiian Holdings Inc. (HA - Free Report) is slated to release second-quarter 2017 earnings numbers on Jul 25, after the market closes.

Last quarter, the company delivered a positive earnings surprise of 20.93%. Also, it has an impressive earnings history, beating the Zacks Consensus Estimate in three of the last four quarters at an average of 7.76%.

Why a Likely Positive Surprise?

Our proven model shows that Hawaiian Holdings is likely to beat on earnings this quarter too, since it has the perfect combination of two key ingredients:

Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +5.23%. This is because the Most Accurate estimate stands at $1.61, whereas the Zacks Consensus Estimate is pegged lower at $1.53. A favorable Zacks ESP serves as a 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 a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating estimates.

Conversely, Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.

Factors at Play

The company’s improvement in the unit revenue scenario is expected to aid results in the second quarter. In June,the carrier raised its second quarter projection pertaining to the revenue per ASM (RASM: a key measure of unit revenue) due to better-than-expected yields mainly in the domestic network. Additionally, fuel cost per gallon (economic) is now projected in the band of $1.6--$1.7 (earlier range was tuned at $1.65–$1.75) in the second quarter of 2017.

Hawaiian Holdings’ growth is supported by strong demand for air travel to Hawaii. Also, the carrier’s efforts to expand internationally raise positivity. Also, it has an impressive track record with respect to punctuality. The company’s second-quarter results are expected to get a boost from these factors.

However, similar to the previous quarter, higher costs are likely to hurt the company’s bottom line in the second quarter as well. In addition, consolidated CASM (excluding fuel) is projected to increase significantly in the quarter to be reported.

Hawaiian Holdings, Inc. Price and EPS Surprise

 

Hawaiian Holdings, Inc. Price and EPS Surprise | Hawaiian Holdings, Inc. Quote

Other Stocks to Consider

Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. (AAL - Free Report) , Alaska Air Group, Inc. (ALK - Free Report) and Canadian National Railway Company (CNI - Free Report) since our model shows that all these stocks possess the right combination of elements to post an earnings beat in the next release.

American Airlines has an Earnings ESP of +2.19% and a Zacks Rank #1. The company is slated to release its second-quarter 2017 results on Jul 28. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alaska Air Group has an Earnings ESP of +0.40% and a Zacks Rank #2. The company will report its second-quarter 2017 financial numbers on Jul 26.

Canadian National Railway has an Earnings ESP of +2.02% and a Zacks Rank #2. The company will release its second-quarter 2017 earnings numbers on Jul 25.

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