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Gol Linhas (GOL) Updates Q4 & First Quarter 2021 Outlook
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Gol Linhas Aereas Inteligentes stated in an investor update that the carrier anticipates its capacity to grow 100% in the December-end quarter of 2020 from the levels achieved in third-quarter 2020. During October, the company operated approximately 376 flights a day to a peak of 500 flights per day, thereby covering 95% of the market.
By the end of 2020, Gol Linhas anticipates to re-establish its pre-COVID period domestic market (represents about 80% of the total capacity in 2019). The company expects to end the year with an average of 94 flights operating in the network and maintain a consistent average load factor (% of seats filled with passengers) of 80% in the final quarter of 2020.
During the fourth quarter, the carrier expects an average operating fleet of 92 flights (representing 78% of the average fleet operated in same period last year). Revenues for December-end quarter is expected to increase approximately 130% sequentially. Total expenses (on an average) are expected to decline 16% year over year owing to cost-containment efforts of the carrier, lower capacity and fuel consumption. During the fourth quarter, the company expects approximately R$2.4 billion in liquidity and R$13.1 billion in adjusted net debt. Net cash burn of R$3 per day is anticipated in the final quarter of 2020.
Update for First Quarter 2021
For first-quarter of 2021, the Latin American airline expects its domestic routes served to increase to 167 on an average (represents about 85% of the total domestic routes served in 2019). The carrier expects an average operating fleet of 102 flights (representing 92% of the average fleet operated in same period 2019). Gol Linhas anticipates an average load factor of 78% in the first quarter of 2021.
Net cash burn of R$2 per day is anticipated for the first quarter of 2021. The carrier aims to operate at 76% of 2019 capacity in the first quarter of next year. Moreover, total liquidity at the end of the quarter is expected to be R$2.5 billion.
Long-term expected earnings per share (three to five years) growth rate for FedEx, Werner and Knight-Swift is pegged at 12%, 13.02% and 15%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Gol Linhas (GOL) Updates Q4 & First Quarter 2021 Outlook
Gol Linhas Aereas Inteligentes stated in an investor update that the carrier anticipates its capacity to grow 100% in the December-end quarter of 2020 from the levels achieved in third-quarter 2020. During October, the company operated approximately 376 flights a day to a peak of 500 flights per day, thereby covering 95% of the market.
By the end of 2020, Gol Linhas anticipates to re-establish its pre-COVID period domestic market (represents about 80% of the total capacity in 2019). The company expects to end the year with an average of 94 flights operating in the network and maintain a consistent average load factor (% of seats filled with passengers) of 80% in the final quarter of 2020.
During the fourth quarter, the carrier expects an average operating fleet of 92 flights (representing 78% of the average fleet operated in same period last year). Revenues for December-end quarter is expected to increase approximately 130% sequentially. Total expenses (on an average) are expected to decline 16% year over year owing to cost-containment efforts of the carrier, lower capacity and fuel consumption. During the fourth quarter, the company expects approximately R$2.4 billion in liquidity and R$13.1 billion in adjusted net debt. Net cash burn of R$3 per day is anticipated in the final quarter of 2020.
Update for First Quarter 2021
For first-quarter of 2021, the Latin American airline expects its domestic routes served to increase to 167 on an average (represents about 85% of the total domestic routes served in 2019). The carrier expects an average operating fleet of 102 flights (representing 92% of the average fleet operated in same period 2019). Gol Linhas anticipates an average load factor of 78% in the first quarter of 2021.
Net cash burn of R$2 per day is anticipated for the first quarter of 2021. The carrier aims to operate at 76% of 2019 capacity in the first quarter of next year. Moreover, total liquidity at the end of the quarter is expected to be R$2.5 billion.
Zacks Rank & Key Picks
Gol Linhas carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Transportation sector are FedEx Corporation (FDX - Free Report) , Werner Enterprises, Inc. (WERN - Free Report) and Knight-Swift Transportation Holdings Inc (KNX - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for FedEx, Werner and Knight-Swift is pegged at 12%, 13.02% and 15%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>