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Gol Linhas (GOL) Q4 Loss Wider than Expected, Revenues Lag
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Gol Linhas Aereas Inteligentes incurred a loss (excluding 92 cents from non-recurring items) of 90 cents per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 62 cents. However, in the year-ago period, the company had reported earnings of 43 cents per share.
Net operating revenues of $350.6 million also missed the Zacks Consensus Estimate of $397 million. Moreover, the top line plunged 62.1% year over year with passenger revenues (accounting for 90.9% of total revenues) plummeting 52% on a year-over-year basis due to suppressed air-travel demand amid coronavirus concerns. Cargo and other revenues also declined 21.5%.
Gol Linhas Aereas Inteligentes S.A. Price, Consensus and EPS Surprise
Consolidated revenue passenger kilometers (RPK), the measure for revenues generated per kilometer per passenger, were down 42.2% year over year. The metric fell 35.2% on the domestic front. The carrier did not operate regular international flights in the quarter.
Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, decreased 41.9% year over year. Domestic capacity slumped 34%.
The company’s total load factor (percentage of seats filled with passengers) was 81.1% compared with 81.5% in the year-ago period. The metric deteriorated as traffic declined more than the extent of capacity contraction. Net yield dropped 16.9% year over year.
Net passenger revenues per ASK declined 17.4%. Meanwhile, net revenues per ASK fell 14.4%. Average fuel price per liter was down 14.4%. However, cost per ASK increased 25.3% year over year. Excluding fuel, the metric surged 40.8%. Meanwhile, total net operating expenses tanked 50.3% year over year with aircraft fuel-related costs plunging 51.6%. Expenses on salary, wages and benefits too declined 46% year over year.
Gol Linhas, currently carrying a Zacks Rank #4 (Sell), exited 2020 with total liquidity (cash and cash equivalents, cash investments, restricted cash, accounts receivable, and securities and receivables) of R$2.6 billion compared with R$4.3 billion at the end of 2019.
During the fourth quarter, operating activities generated R$656.6 million compared with an operating cash flow of R$962.3 million in the year-ago period. Long-term debt totaled R$13.89 billion at the end of the reported quarter, up 32.1% year over year.
Gol Linhas’ fleet at the end of the quarter comprised 127 Boeing 737 jets (120 NGs and seven (operational) MAXs). The average age of the fleet was 11 years.
Outlook
For the first quarter of 2021, Gol Linhas anticipates capacity to be 55% of the first-quarter 2019 levels. In the March quarter, the airline expects to operate 74 aircraft, on average, implying 67% of the operating fleet at the end of first-quarter 2019. Load factor (% of seats filled by passengers) is estimated to be approximately 82% in the first quarter. Net debt of R$14.3 billion is expected in first-quarter 2021. Moreover, the company expects to end the first quarter of 2021 with R$1.7 billion of net operating revenues (52% of the first-quarter 2019 levels).
Sectorial Snapshots
Let’s look into some other Zacks Transportation sector companies’ fourth-quarter results.
Expeditors International of Washington (EXPD - Free Report) reported fourth-quarter 2020 earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.04. Additionally, total revenues of $3,169.2 million outperformed the Zacks Consensus Estimate of $2,397 million.
Trinity Industries (TRN - Free Report) reported fourth-quarter 2020 earnings (excluding $1.17 from non-recurring items) of 4 cents per share, which missed the Zacks Consensus Estimate by a penny. However, total revenues of $415.6 million surpassed the Zacks Consensus Estimate of $299.7 million.
Azul (AZUL - Free Report) incurred a loss (adjusted) of $1.49 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 80 cents. However, total revenues of $331 million outperformed the Zacks Consensus Estimate of $313 million.
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Gol Linhas (GOL) Q4 Loss Wider than Expected, Revenues Lag
Gol Linhas Aereas Inteligentes incurred a loss (excluding 92 cents from non-recurring items) of 90 cents per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 62 cents. However, in the year-ago period, the company had reported earnings of 43 cents per share.
Net operating revenues of $350.6 million also missed the Zacks Consensus Estimate of $397 million. Moreover, the top line plunged 62.1% year over year with passenger revenues (accounting for 90.9% of total revenues) plummeting 52% on a year-over-year basis due to suppressed air-travel demand amid coronavirus concerns. Cargo and other revenues also declined 21.5%.
Gol Linhas Aereas Inteligentes S.A. Price, Consensus and EPS Surprise
Gol Linhas Aereas Inteligentes S.A. price-consensus-eps-surprise-chart | Gol Linhas Aereas Inteligentes S.A. Quote
Operational Statistics
Consolidated revenue passenger kilometers (RPK), the measure for revenues generated per kilometer per passenger, were down 42.2% year over year. The metric fell 35.2% on the domestic front. The carrier did not operate regular international flights in the quarter.
Consolidated available seat kilometers (ASK), measuring an airline's passenger-carrying capacity, decreased 41.9% year over year. Domestic capacity slumped 34%.
The company’s total load factor (percentage of seats filled with passengers) was 81.1% compared with 81.5% in the year-ago period. The metric deteriorated as traffic declined more than the extent of capacity contraction. Net yield dropped 16.9% year over year.
Net passenger revenues per ASK declined 17.4%. Meanwhile, net revenues per ASK fell 14.4%. Average fuel price per liter was down 14.4%. However, cost per ASK increased 25.3% year over year. Excluding fuel, the metric surged 40.8%. Meanwhile, total net operating expenses tanked 50.3% year over year with aircraft fuel-related costs plunging 51.6%. Expenses on salary, wages and benefits too declined 46% year over year.
Gol Linhas, currently carrying a Zacks Rank #4 (Sell), exited 2020 with total liquidity (cash and cash equivalents, cash investments, restricted cash, accounts receivable, and securities and receivables) of R$2.6 billion compared with R$4.3 billion at the end of 2019.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
During the fourth quarter, operating activities generated R$656.6 million compared with an operating cash flow of R$962.3 million in the year-ago period. Long-term debt totaled R$13.89 billion at the end of the reported quarter, up 32.1% year over year.
Gol Linhas’ fleet at the end of the quarter comprised 127 Boeing 737 jets (120 NGs and seven (operational) MAXs). The average age of the fleet was 11 years.
Outlook
For the first quarter of 2021, Gol Linhas anticipates capacity to be 55% of the first-quarter 2019 levels. In the March quarter, the airline expects to operate 74 aircraft, on average, implying 67% of the operating fleet at the end of first-quarter 2019. Load factor (% of seats filled by passengers) is estimated to be approximately 82% in the first quarter. Net debt of R$14.3 billion is expected in first-quarter 2021. Moreover, the company expects to end the first quarter of 2021 with R$1.7 billion of net operating revenues (52% of the first-quarter 2019 levels).
Sectorial Snapshots
Let’s look into some other Zacks Transportation sector companies’ fourth-quarter results.
Expeditors International of Washington (EXPD - Free Report) reported fourth-quarter 2020 earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.04. Additionally, total revenues of $3,169.2 million outperformed the Zacks Consensus Estimate of $2,397 million.
Trinity Industries (TRN - Free Report) reported fourth-quarter 2020 earnings (excluding $1.17 from non-recurring items) of 4 cents per share, which missed the Zacks Consensus Estimate by a penny. However, total revenues of $415.6 million surpassed the Zacks Consensus Estimate of $299.7 million.
Azul (AZUL - Free Report) incurred a loss (adjusted) of $1.49 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 80 cents. However, total revenues of $331 million outperformed the Zacks Consensus Estimate of $313 million.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>