We have entered the heart of the 2024 Q1 earnings cycle with a notably stacked earnings schedule on deck for this week. The period has primarily been positive so far, with the big banks’ results not causing any spooks.
This week, we’ll hear from American Airlines (AAL - Free Report) and Southwest Airlines (LUV - Free Report) . What can investors expect? We can use results from a peer, United Airlines (UAL - Free Report) , as a small read-through. Let’s take a closer look.
United Airlines
Concerning headline figures, UAL posted a 71% beat relative to the Zacks Consensus EPS estimate and reported sales modestly ahead of expectations, with both items well-higher than year-ago figures. Interestingly enough, the company would’ve posted a quarterly profit had it not experienced a $200 million impact from the Boeing 737 MAX 9 grounding.
Below is a chart illustrating the company’s revenue on a quarterly basis.
Consumers still have a strong interest in travel, with UAL’s capacity up 9.1% year-over-year. Lower fuel prices also aided profitability, with the $2.88 per gallon mark nicely beneath the $3.13 mark in the prior quarter.
The company reaffirmed its prior guidance, expecting full-year 2024 adjusted EPS in a band of $9 - $11. Shares popped following the release, with the market impressed by the results.
American Airlines
Analysts have reversed their earnings estimate revisions, with the current -$0.28 Zacks Consensus EPS estimate up from -$0.32 at the end of March. Revenue revisions have remained positive for nearly all year, with the $12.6 billion expected modestly higher than the $12.5 billion expected at the end of January.
It’s worth noting that the company has regularly exceeded our expectations in a big way as of late, beating our consensus EPS estimate by an average of 120% across its last four releases.
Southwest Airlines
Southwest’s earnings outlook hasn’t been as positive, with the -$0.31 Zacks Consensus EPS estimate down considerably from the -$0.19 mark in mid-March. Revenue revisions have been more bullish, as the $6.4 billion expected is up roughly 3%.
Like AAL, the company has been on a solid earnings streak as of late, beating our consensus EPS expectations by an average of 52% across its last four releases.
Bottom Line
With several airliners – American Airlines (AAL - Free Report) and Southwest Airlines (LUV - Free Report) – on the reporting docket this week, using the recent results we’ve received from United Airlines (UAL - Free Report) can provide a framework of what to expect concerning consumer behavior.
UAL posted a solid quarterly release, with Capacity continuing to grow and lower fuel prices aiding results. Still, it's critical to note that the grounding of Boeing 737 MAX does not affect LUV or AAL, as the companies do not fly this particular craft.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
We have entered the heart of the 2024 Q1 earnings cycle with a notably stacked earnings schedule on deck for this week. The period has primarily been positive so far, with the big banks’ results not causing any spooks.
This week, we’ll hear from American Airlines (AAL - Free Report) and Southwest Airlines (LUV - Free Report) . What can investors expect? We can use results from a peer, United Airlines (UAL - Free Report) , as a small read-through. Let’s take a closer look.
United Airlines
Concerning headline figures, UAL posted a 71% beat relative to the Zacks Consensus EPS estimate and reported sales modestly ahead of expectations, with both items well-higher than year-ago figures. Interestingly enough, the company would’ve posted a quarterly profit had it not experienced a $200 million impact from the Boeing 737 MAX 9 grounding.
Below is a chart illustrating the company’s revenue on a quarterly basis.
Consumers still have a strong interest in travel, with UAL’s capacity up 9.1% year-over-year. Lower fuel prices also aided profitability, with the $2.88 per gallon mark nicely beneath the $3.13 mark in the prior quarter.
The company reaffirmed its prior guidance, expecting full-year 2024 adjusted EPS in a band of $9 - $11. Shares popped following the release, with the market impressed by the results.
American Airlines
Analysts have reversed their earnings estimate revisions, with the current -$0.28 Zacks Consensus EPS estimate up from -$0.32 at the end of March. Revenue revisions have remained positive for nearly all year, with the $12.6 billion expected modestly higher than the $12.5 billion expected at the end of January.
It’s worth noting that the company has regularly exceeded our expectations in a big way as of late, beating our consensus EPS estimate by an average of 120% across its last four releases.
Southwest Airlines
Southwest’s earnings outlook hasn’t been as positive, with the -$0.31 Zacks Consensus EPS estimate down considerably from the -$0.19 mark in mid-March. Revenue revisions have been more bullish, as the $6.4 billion expected is up roughly 3%.
Like AAL, the company has been on a solid earnings streak as of late, beating our consensus EPS expectations by an average of 52% across its last four releases.
Bottom Line
With several airliners – American Airlines (AAL - Free Report) and Southwest Airlines (LUV - Free Report) – on the reporting docket this week, using the recent results we’ve received from United Airlines (UAL - Free Report) can provide a framework of what to expect concerning consumer behavior.
UAL posted a solid quarterly release, with Capacity continuing to grow and lower fuel prices aiding results. Still, it's critical to note that the grounding of Boeing 737 MAX does not affect LUV or AAL, as the companies do not fly this particular craft.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
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