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Alaska Air (ALK) Q1 Loss Narrower than Expected, Revenues Beat
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Alaska Air Group (ALK - Free Report) , the parent company of Alaska Airlines, incurred a loss (excluding $2.46 from non-recurring items) of $3.51 per share, narrower than the Zacks Consensus Estimate of a loss of $3.71. In the year-ago quarter, the company incurred a loss of 82 cents. Results were hurt by significant decline in passenger revenues as coronavirus keeps air-travel demand suppressed.
Revenues at Alaska Air came in at $797 million, surpassing the Zacks Consensus Estimate of $787.1 million. The top line, however, declined 51.3% year over year. Passenger revenues — contributing 82.7% to the top line — were down 56% year over year to $659 million due to weak travel demand.
Other Details
Consolidated traffic, measured in revenue passenger miles, fell 49.4% year over year in the reported quarter. Consolidated capacity (measured in available seat miles) dropped 32.1%. Load factor (percentage of seats occupied by passengers) deteriorated 17.7 points to 51.9% as traffic plunged more than the amount of capacity contraction.
Total revenue per available seat mile (RASM: a key measure of unit revenues) slumped 28.3% year over year to 7.67 cents in the reported quarter. Meanwhile, yield declined 12.1% to 12.22 cents.
In the first quarter, total operating expenses (on a reported basis) dropped 51% year over year to $958 million. Consolidated fuel price (economic) was $1.79 per gallon, down 7.3% year over year. With most of the fleet remaining grounded/under-utilized, fuel gallons consumed were down 35.1% year over year. Consolidated cost per available seat mile excluding fuel and special items (non-fuel unit costs) increased 18.5% to 10.93 cents, mainly due to capacity cuts.
Alaska Air Group, Inc. Price, Consensus and EPS Surprise
As of Mar 31, 2021, the company had $3.55 billion in cash and marketable securities compared with $3.35 billion at the end of 2020.
This Zacks Rank #3 (Hold) company exited the first quarter with long-term debt of $2.32 billion compared with $2.36 billion at December 2020-end. Inclusive of operating leases, debt-to-capitalization ratio was 62% compared with 61% at the end of December 2020. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
During the quarter, the company received $546 million in the form of grants and loans under the Payroll Support Program Extension. The airline expects to receive additional funding of $80 million in late April.
Sectorial Snapshot
Let’s take a look at some of the other recently released earnings reports from companies within the Zacks Transportation sector.
Delta Air Lines (DAL - Free Report) , carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $1.70 from non-recurring items) of $3.55 per share, wider than the Zacks Consensus Estimate of a loss of $3.08. Meanwhile, total revenues of $4,150 million topped the Zacks Consensus Estimate of $3,821.3 million.
J.B. Hunt Transport Services (JBHT - Free Report) , a Zacks #3-Ranked player, reported earnings of $1.37 per share, beating the Zacks Consensus Estimate of $1.18. Total operating revenues of $2,618.1 million also surpassed the Zacks Consensus Estimate of $2,486.9 million.
Kansas City Southern , carrying a Zacks Rank of 3, reported earnings (excluding 23 cents from non-recurring items) of $1.91 per share, missing the Zacks Consensus Estimate of $2. Moreover, quarterly revenues of $706 million lagged the Zacks Consensus Estimate of $714.3 million.
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Alaska Air (ALK) Q1 Loss Narrower than Expected, Revenues Beat
Alaska Air Group (ALK - Free Report) , the parent company of Alaska Airlines, incurred a loss (excluding $2.46 from non-recurring items) of $3.51 per share, narrower than the Zacks Consensus Estimate of a loss of $3.71. In the year-ago quarter, the company incurred a loss of 82 cents. Results were hurt by significant decline in passenger revenues as coronavirus keeps air-travel demand suppressed.
Revenues at Alaska Air came in at $797 million, surpassing the Zacks Consensus Estimate of $787.1 million. The top line, however, declined 51.3% year over year. Passenger revenues — contributing 82.7% to the top line — were down 56% year over year to $659 million due to weak travel demand.
Other Details
Consolidated traffic, measured in revenue passenger miles, fell 49.4% year over year in the reported quarter. Consolidated capacity (measured in available seat miles) dropped 32.1%. Load factor (percentage of seats occupied by passengers) deteriorated 17.7 points to 51.9% as traffic plunged more than the amount of capacity contraction.
Total revenue per available seat mile (RASM: a key measure of unit revenues) slumped 28.3% year over year to 7.67 cents in the reported quarter. Meanwhile, yield declined 12.1% to 12.22 cents.
In the first quarter, total operating expenses (on a reported basis) dropped 51% year over year to $958 million. Consolidated fuel price (economic) was $1.79 per gallon, down 7.3% year over year. With most of the fleet remaining grounded/under-utilized, fuel gallons consumed were down 35.1% year over year. Consolidated cost per available seat mile excluding fuel and special items (non-fuel unit costs) increased 18.5% to 10.93 cents, mainly due to capacity cuts.
Alaska Air Group, Inc. Price, Consensus and EPS Surprise
Alaska Air Group, Inc. price-consensus-eps-surprise-chart | Alaska Air Group, Inc. Quote
Liquidity
As of Mar 31, 2021, the company had $3.55 billion in cash and marketable securities compared with $3.35 billion at the end of 2020.
This Zacks Rank #3 (Hold) company exited the first quarter with long-term debt of $2.32 billion compared with $2.36 billion at December 2020-end. Inclusive of operating leases, debt-to-capitalization ratio was 62% compared with 61% at the end of December 2020. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
During the quarter, the company received $546 million in the form of grants and loans under the Payroll Support Program Extension. The airline expects to receive additional funding of $80 million in late April.
Sectorial Snapshot
Let’s take a look at some of the other recently released earnings reports from companies within the Zacks Transportation sector.
Delta Air Lines (DAL - Free Report) , carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $1.70 from non-recurring items) of $3.55 per share, wider than the Zacks Consensus Estimate of a loss of $3.08. Meanwhile, total revenues of $4,150 million topped the Zacks Consensus Estimate of $3,821.3 million.
J.B. Hunt Transport Services (JBHT - Free Report) , a Zacks #3-Ranked player, reported earnings of $1.37 per share, beating the Zacks Consensus Estimate of $1.18. Total operating revenues of $2,618.1 million also surpassed the Zacks Consensus Estimate of $2,486.9 million.
Kansas City Southern , carrying a Zacks Rank of 3, reported earnings (excluding 23 cents from non-recurring items) of $1.91 per share, missing the Zacks Consensus Estimate of $2. Moreover, quarterly revenues of $706 million lagged the Zacks Consensus Estimate of $714.3 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 >>