Latin American carrier Copa Holdings (CPA - Free Report) has been outperforming of late. Shares of this Zacks Rank #2 (Buy) carrier have gained over 16% in the past month.
Strong Second Quarter
Copa Holdings performed impressively in the second quarter, coming up with better-than-expected earnings as well as revenues. The Panama City-based carrier’s second-quarter earnings (on an adjusted basis) of 51 cents per share were well above the Zacks Consensus Estimate of 23 cents. Quarterly revenues of $494 million also beat the Zacks Consensus Estimate of $483 million.
Average fuel price per gallon declined 21.3% year over year. Passenger traffic (on a consolidated basis) grew 6.2%, whereas capacity contracted 0.4% during the quarter. Load factor climbed 490 basis points to 78.3% as traffic expanded while capacity contracted. Naturally the strong earnings report led to the significant appreciation in share price of the carrier.
Estimates on the Upswing
We note that earnings estimates for Copa Holdings have displayed a healthy uptrend following strong second-quarter results. Over the last 30 days, the Zacks Consensus Estimate of earnings for 2016 has gone up 66 cents to $4.45 per share. The Zacks Consensus Estimate for 2017 has jumped 69 cents over the last month to $5.47 per share.
Expansion Efforts in Place
We are encouraged by the carrier’s efforts to expand its operations. In July this year, the carrier launched flights to Rosario, Argentina – marking its third new destination in the current year. The carrier, which exited the second quarter with a fleet of over 100 planes, took delivery of one Boeing 737-800 aircraft during the quarter.
The carrier’s efforts to reward its shareholders through dividend payments are also encouraging. Copa Holdings' quarterly dividend of 51 cents per share ($2.04 on an annualized basis), currently yields almost 2.6%. The carrier will pay its dividend for the third quarter on Sep 15. The past records bear evidence of Copa Holdings’ stable dividend payment history.
Other Stocks to Consider
Apart from Copa Holdings, investors interested in the broader transportation space may also consider stocks like SkyWest, Inc. (SKYW - Free Report) , ANA Holdings Inc. (ALNPY - Free Report) and Air Transport Services Group, Inc. (ATSG - Free Report) . All the three stocks carry a Zacks Rank #2 (Buy).
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Latin American carrier Copa Holdings (CPA - Free Report) has been outperforming of late. Shares of this Zacks Rank #2 (Buy) carrier have gained over 16% in the past month.
Strong Second Quarter
Copa Holdings performed impressively in the second quarter, coming up with better-than-expected earnings as well as revenues. The Panama City-based carrier’s second-quarter earnings (on an adjusted basis) of 51 cents per share were well above the Zacks Consensus Estimate of 23 cents. Quarterly revenues of $494 million also beat the Zacks Consensus Estimate of $483 million.
Average fuel price per gallon declined 21.3% year over year. Passenger traffic (on a consolidated basis) grew 6.2%, whereas capacity contracted 0.4% during the quarter. Load factor climbed 490 basis points to 78.3% as traffic expanded while capacity contracted. Naturally the strong earnings report led to the significant appreciation in share price of the carrier.
Estimates on the Upswing
We note that earnings estimates for Copa Holdings have displayed a healthy uptrend following strong second-quarter results. Over the last 30 days, the Zacks Consensus Estimate of earnings for 2016 has gone up 66 cents to $4.45 per share. The Zacks Consensus Estimate for 2017 has jumped 69 cents over the last month to $5.47 per share.
Expansion Efforts in Place
We are encouraged by the carrier’s efforts to expand its operations. In July this year, the carrier launched flights to Rosario, Argentina – marking its third new destination in the current year. The carrier, which exited the second quarter with a fleet of over 100 planes, took delivery of one Boeing 737-800 aircraft during the quarter.
The carrier’s efforts to reward its shareholders through dividend payments are also encouraging. Copa Holdings' quarterly dividend of 51 cents per share ($2.04 on an annualized basis), currently yields almost 2.6%. The carrier will pay its dividend for the third quarter on Sep 15. The past records bear evidence of Copa Holdings’ stable dividend payment history.
Other Stocks to Consider
Apart from Copa Holdings, investors interested in the broader transportation space may also consider stocks like SkyWest, Inc. (SKYW - Free Report) , ANA Holdings Inc. (ALNPY - Free Report) and Air Transport Services Group, Inc. (ATSG - Free Report) . All the three stocks carry a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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