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Azul (AZUL) Posts Upbeat Preliminary Q4 Cargo Unit Results
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Even though air-travel demand showed a recent uptick in Latin America, passenger revenues continue to fall way below the year-ago levels at Azul (AZUL - Free Report) . Evidently, passenger revenues declined 78.4% year over year in the September quarter. The same is likely to have been weak in the December quarter of 2020. Detailed results will be out on Mar 4.
To mitigate the woes resulting from lackluster passenger revenues, Azul is focusing on boosting cargo revenues. As a result, management stated that fourth-quarter revenues from its logistics unit Azul Cargo Express increased 64% year over year. This phenomenal growth is primarily owing to the surge in e-commerce demand as online shopping took precedence in the pandemic era, which confines people to their homes.
Apart from the bullish update on cargo revenues, Azul was in news following its announcement in December that it expects to operate more than 90% (compared with the 2019 level) of its domestic capacity in the fourth quarter. This implies that roughly 70% of its total capacity is expected to have been operative in the December quarter. Anticipating the uptick in domestic air travel to continue, Azul expects to operate more than 100% of its domestic capacity (compared with the 2019 level) in the March quarter of 2021. This indicates that more than 85% of its total capacity is likely to be operative in the March quarter.
Zacks Rank & Key Picks
Azul currently carries a Zacks Rank # 3 (Hold). Some better-ranked stocks in the broader Zacks Transportation sector are Kansas City Southern (), FedEx Corporation (FDX - Free Report) )and Herc Holdings Inc. ((HRI - Free Report) ). Kansas City carries a Zacks Rank #2 (Buy) while FedEx and Herc Holdings sport a Zacks Rank #1 (Strong Buy), presently. 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, Kansas City and Herc Holdings is pegged at 12%, 15% and 12.6%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Azul (AZUL) Posts Upbeat Preliminary Q4 Cargo Unit Results
Even though air-travel demand showed a recent uptick in Latin America, passenger revenues continue to fall way below the year-ago levels at Azul (AZUL - Free Report) . Evidently, passenger revenues declined 78.4% year over year in the September quarter. The same is likely to have been weak in the December quarter of 2020. Detailed results will be out on Mar 4.
To mitigate the woes resulting from lackluster passenger revenues, Azul is focusing on boosting cargo revenues. As a result, management stated that fourth-quarter revenues from its logistics unit Azul Cargo Express increased 64% year over year. This phenomenal growth is primarily owing to the surge in e-commerce demand as online shopping took precedence in the pandemic era, which confines people to their homes.
Apart from the bullish update on cargo revenues, Azul was in news following its announcement in December that it expects to operate more than 90% (compared with the 2019 level) of its domestic capacity in the fourth quarter. This implies that roughly 70% of its total capacity is expected to have been operative in the December quarter. Anticipating the uptick in domestic air travel to continue, Azul expects to operate more than 100% of its domestic capacity (compared with the 2019 level) in the March quarter of 2021. This indicates that more than 85% of its total capacity is likely to be operative in the March quarter.
Zacks Rank & Key Picks
Azul currently carries a Zacks Rank # 3 (Hold). Some better-ranked stocks in the broader Zacks Transportation sector are Kansas City Southern (), FedEx Corporation (FDX - Free Report) ) and Herc Holdings Inc. ((HRI - Free Report) ). Kansas City carries a Zacks Rank #2 (Buy) while FedEx and Herc Holdings sport a Zacks Rank #1 (Strong Buy), presently. 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, Kansas City and Herc Holdings is pegged at 12%, 15% and 12.6%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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