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American Airlines Group Inc. (AAL - Free Report) reported second-quarter 2018 earnings per share (excluding 41 cents from non-recurring items) of $1.63, edging past the Zacks Consensus Estimate of $1.59. Earnings decreased on a year-over-year basis.
How was the Estimate Revision Trend?
Investors should note that the earnings estimate revisions for American Airlines depicted a gloomy picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for second-quarter earnings being revised 5.9% downward over the last 30 days.
However, the carrier has an impressive earnings surprise history having delivered positive surprises in each of the past four quarters. The average earnings beat was 2.4%
American Airlines Group Inc. Price and EPS Surprise
American Airlines recorded revenues of $11,643 million, which fell short of the Zacks Consensus Estimate of $11,652 million. However, revenues increased year over year.
Key Statistics: Operating cost per available seat mile excluding fuel and special items increased 2.4% on a year over year basis. Total revenue per available seat miles (TRASM) improved 2.1% in the reported quarter. Yield improved 1%.During the quarter, the company returned $396 million to shareholders through dividends and buybacks.
TRASM is expected to increase in the band of 1% to 3% in the third quarter of 2018. Pre-tax margin excluding special items is projected in the range of 5% to 7%.
Adjusted earnings per share in 2018 are now expected between $4.50 and $5 (previous guidance had hinted at earnings between $5 and $6). The Zacks Consensus Estimate for 2018 earnings is currently pegged at $4.74 per share.
The company expects capacity in the third quarter to rise approximately 3.3% year over year (down 0.6 percentage points from its previous forecast). The same for the fourth quarter and full year is anticipated to be up approximately 1.6% (down 1 percentage point) and 2.2% respectively.
Check back later for our full write up on this American Airlines earnings report later!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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American Airlines (AAL) Beats Q2 Earnings
American Airlines Group Inc. (AAL - Free Report) reported second-quarter 2018 earnings per share (excluding 41 cents from non-recurring items) of $1.63, edging past the Zacks Consensus Estimate of $1.59. Earnings decreased on a year-over-year basis.
How was the Estimate Revision Trend?
Investors should note that the earnings estimate revisions for American Airlines depicted a gloomy picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for second-quarter earnings being revised 5.9% downward over the last 30 days.
However, the carrier has an impressive earnings surprise history having delivered positive surprises in each of the past four quarters. The average earnings beat was 2.4%
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. Price and EPS Surprise | American Airlines Group Inc. Quote
Revenues Lower Than Expected
American Airlines recorded revenues of $11,643 million, which fell short of the Zacks Consensus Estimate of $11,652 million. However, revenues increased year over year.
Key Statistics: Operating cost per available seat mile excluding fuel and special items increased 2.4% on a year over year basis. Total revenue per available seat miles (TRASM) improved 2.1% in the reported quarter. Yield improved 1%.During the quarter, the company returned $396 million to shareholders through dividends and buybacks.
TRASM is expected to increase in the band of 1% to 3% in the third quarter of 2018. Pre-tax margin excluding special items is projected in the range of 5% to 7%.
Adjusted earnings per share in 2018 are now expected between $4.50 and $5 (previous guidance had hinted at earnings between $5 and $6). The Zacks Consensus Estimate for 2018 earnings is currently pegged at $4.74 per share.
The company expects capacity in the third quarter to rise approximately 3.3% year over year (down 0.6 percentage points from its previous forecast). The same for the fourth quarter and full year is anticipated to be up approximately 1.6% (down 1 percentage point) and 2.2% respectively.
Zacks Rank: Currently, American Airlines carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Check back later for our full write up on this American Airlines earnings report later!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>