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What's in Store for Hawaiian Holdings (HA) in Q4 Earnings?
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Hawaiian Holdings (HA - Free Report) is scheduled to report fourth-quarter 2020 results on Jan 26, after market close.
The company has a mediocre average earnings track record. Its bottom line surpassed estimates in two of the last four quarters (lagging estimates in the other two), the average beat being 7.9%.
The Zacks Consensus Estimate for the December-quarter bottom line has widened to a loss of $3.38 from $2.27 loss over the past 90 days.
Against this backdrop, let’s take a look at the factors that are expected to have impacted the company’s fourth-quarter performance.
Akin to the third quarter, weak air-travel demand amid coronavirus concerns is expected to have affected the airline’s passenger revenues. The Zacks Consensus Estimate for fourth-quarter passenger revenues indicates an approximate 84.3% plunge from the year-ago period’s reported number.
Due to the weakness in passenger revenues, the consensus mark for passenger revenue per available seat miles (PRASM: a key measure of unit revenues) is pegged at a fall 43.2% in the final quarter of 2020 from the year-ago period’s reported figure. Notably, the Zacks Consensus Estimate for fourth-quarter 2020 traffic (measured in revenue passenger miles) indicates an 87.9% decrease from the figure reported in fourth-quarter 2019.
To match the low-demand scenario, Hawaiian Holdings reduced its capacity significantly. For the fourth quarter, the carrier expects capacity to decline 70% year over year. The Zacks Consensus Estimate for the same also suggests a 72.5% drop from the level reported in the fourth quarter of 2019. With traffic decreasing at a greater rate than capacity, load factor (% of seats filled by passengers) is also likely to have fallen in the December quarter. Consequently, the Zacks Consensus Estimate for fourth-quarter 2020 passenger load factor is currently pegged at 40.9%, indicating a massive slump from 86% reported in fourth-quarter 2019.
However, moderate fuel costs are likely to have provided some relief to the depressed passenger revenues, thereby supporting the company’s bottom line. The Zacks Consensus Estimate for fourth-quarter 2020 expenses on aircraft fuel indicates a 77.8% decline from the figure reported in fourth-quarter 2019. Also, with most of the carrier’s fleet remaining grounded/under-utilized, fuel gallons consumed are likely to have been low. As a result, the Zacks Consensus Estimate for fourth-quarter 2020 fuel gallons consumed hints at a 61.8% plummet from the reading recorded in fourth-quarter 2019.
Earnings Whispers
The proven Zacks model does not conclusively predict a bottom-line outperformance for Hawaiian Holdings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Hawaiian Holdings has an Earnings ESP of -3.64%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
In the last reported quarter, the company witnessed a negative earnings surprise of 5.6%. Quarterly revenues too missed the Zacks Consensus Estimate and also tumbled 89.9% year over year due to the 94.3% fall in passenger revenues.
Stocks to Consider
Investors interested in the broader Transportation sector may consider C.H. Robinson Worldwide, Inc. (CHRW - Free Report) , Knight-Swift Transportation Holdings Inc. (KNX - Free Report) and Landstar System, Inc. (LSTR - Free Report) as these stocks possess the right combination of elements to beat estimates this reporting cycle.
C.H. Robinson has an Earnings ESP of +0.12% and is Zacks #3 Ranked, presently. The company will release fourth-quarter 2020 results on Jan 26.
Knight-Swift has an Earnings ESP of +1.10% and a Zacks Rank of 3 at present. The company will release fourth-quarter 2020 results on Jan 27.
Landstar System has an Earnings ESP of +0.57% and is currently a #3 Ranked player. The company will release fourth-quarter 2020 results on Jan 27.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
What's in Store for Hawaiian Holdings (HA) in Q4 Earnings?
Hawaiian Holdings (HA - Free Report) is scheduled to report fourth-quarter 2020 results on Jan 26, after market close.
The company has a mediocre average earnings track record. Its bottom line surpassed estimates in two of the last four quarters (lagging estimates in the other two), the average beat being 7.9%.
The Zacks Consensus Estimate for the December-quarter bottom line has widened to a loss of $3.38 from $2.27 loss over the past 90 days.
Against this backdrop, let’s take a look at the factors that are expected to have impacted the company’s fourth-quarter performance.
Akin to the third quarter, weak air-travel demand amid coronavirus concerns is expected to have affected the airline’s passenger revenues. The Zacks Consensus Estimate for fourth-quarter passenger revenues indicates an approximate 84.3% plunge from the year-ago period’s reported number.
Due to the weakness in passenger revenues, the consensus mark for passenger revenue per available seat miles (PRASM: a key measure of unit revenues) is pegged at a fall 43.2% in the final quarter of 2020 from the year-ago period’s reported figure. Notably, the Zacks Consensus Estimate for fourth-quarter 2020 traffic (measured in revenue passenger miles) indicates an 87.9% decrease from the figure reported in fourth-quarter 2019.
To match the low-demand scenario, Hawaiian Holdings reduced its capacity significantly. For the fourth quarter, the carrier expects capacity to decline 70% year over year. The Zacks Consensus Estimate for the same also suggests a 72.5% drop from the level reported in the fourth quarter of 2019. With traffic decreasing at a greater rate than capacity, load factor (% of seats filled by passengers) is also likely to have fallen in the December quarter. Consequently, the Zacks Consensus Estimate for fourth-quarter 2020 passenger load factor is currently pegged at 40.9%, indicating a massive slump from 86% reported in fourth-quarter 2019.
However, moderate fuel costs are likely to have provided some relief to the depressed passenger revenues, thereby supporting the company’s bottom line. The Zacks Consensus Estimate for fourth-quarter 2020 expenses on aircraft fuel indicates a 77.8% decline from the figure reported in fourth-quarter 2019. Also, with most of the carrier’s fleet remaining grounded/under-utilized, fuel gallons consumed are likely to have been low. As a result, the Zacks Consensus Estimate for fourth-quarter 2020 fuel gallons consumed hints at a 61.8% plummet from the reading recorded in fourth-quarter 2019.
Earnings Whispers
The proven Zacks model does not conclusively predict a bottom-line outperformance for Hawaiian Holdings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Hawaiian Holdings has an Earnings ESP of -3.64%. 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 #5 (Strong Sell).
Highlights of Q3 Earnings
In the last reported quarter, the company witnessed a negative earnings surprise of 5.6%. Quarterly revenues too missed the Zacks Consensus Estimate and also tumbled 89.9% year over year due to the 94.3% fall in passenger revenues.
Stocks to Consider
Investors interested in the broader Transportation sector may consider C.H. Robinson Worldwide, Inc. (CHRW - Free Report) , Knight-Swift Transportation Holdings Inc. (KNX - Free Report) and Landstar System, Inc. (LSTR - Free Report) as these stocks possess the right combination of elements to beat estimates this reporting cycle.
C.H. Robinson has an Earnings ESP of +0.12% and is Zacks #3 Ranked, presently. The company will release fourth-quarter 2020 results on Jan 26.
Knight-Swift has an Earnings ESP of +1.10% and a Zacks Rank of 3 at present. The company will release fourth-quarter 2020 results on Jan 27.
Landstar System has an Earnings ESP of +0.57% and is currently a #3 Ranked player. The company will release fourth-quarter 2020 results on Jan 27.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>