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The Zacks Consensus Estimate for ALK’s second-quarter 2022 earnings has been revised upward by 65.2% in the past 90 days. The company also has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 18.6%.
Let’s see how things are shaping up for Alaska Air this earnings season.
Q2 Expectations
The Zacks Consensus Estimate for Alaska Air’s second-quarter 2022 revenues is pegged at $2.56 billion, indicating 67.9% growth year over year. The top line is likely to have been aided by continued recovery in air-travel demand and improvement in passenger revenues.
These tailwinds have enabled ALK’s management to raise second-quarter revenue guidance. The company now expects total revenues to increase 12-14% from the second-quarter 2019 actuals (earlier expectation was for a 5-8% increase). Load factor is anticipated in the 87-88% range (earlier expectation was in the 85-88% band).
On the flip side, escalating operating expenses, primarily due to rising fuel prices, continue to bother Alaska Air’s bottom line. The carrier now expects its second-quarter economic fuel cost in the $3.65-$3.68 range compared with the initial estimate of $3.25-$3.30. The Zacks Consensus Estimate for economic fuel cost per gallon is pegged at $2.78.
What Our Model Says
Our proven model predicts an earnings beat for Alaska Air 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Alaska Air has an Earnings ESP of +0.54% and a Zacks Rank #3.
Highlights of Q1
Alaska Air incurred a loss (excluding 19 cents from non-recurring items) of $1.33 per share in the first quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of $1.58. In the year-ago period, ALK had incurred a loss of $3.51.
Operating revenues of $1,681 million outperformed the Zacks Consensus Estimate of $1,669.3 million. The top line surged more than 100% year over year, with passenger revenues accounting for 89.9% of the top line, soaring more than 100% owing to an improvement in air-travel demand from the pandemic-induced lows.
Other Stocks to Consider
Here are a few other stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these too have the right combination of elements to beat on their second-quarter 2022 earnings:
C.H. Robinson has an expected earnings growth rate of 16.6% for the current year. CHRW delivered a trailing four-quarter earnings surprise of 17.1%, on average.
CHRW has a long-term earnings growth rate of 9%.
Kirby (KEX - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank #2. KEX will release results on Jul 28.
Kirby has an expected earnings growth rate of 282.14% for the current year. KEX delivered a trailing four-quarter earnings surprise of 7.7%, on average.
KEX has a long-term earnings growth rate of 12%.
Southwest Airlines Co.(LUV - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank #3. Improved air-travel demand is likely to aid LUV’s results.LUV will release results on Jul 28.
Southwest has an expected earnings growth rate of 226.05% for the current year. LUV delivered a trailing four-quarter earnings surprise of 33.5%, on average.
Southwest has a long-term earnings growth rate of 6%.
Image: Bigstock
Is a Beat in the Cards for Alaska Air (ALK) in Q2 Earnings?
Alaska Air Group, Inc. (ALK - Free Report) is scheduled to report second-quarter 2022 results on Jul 21, before market opens.
The Zacks Consensus Estimate for ALK’s second-quarter 2022 earnings has been revised upward by 65.2% in the past 90 days. The company also has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 18.6%.
Alaska Air Group, Inc. Price and EPS Surprise
Alaska Air Group, Inc. price-eps-surprise | Alaska Air Group, Inc. Quote
Let’s see how things are shaping up for Alaska Air this earnings season.
Q2 Expectations
The Zacks Consensus Estimate for Alaska Air’s second-quarter 2022 revenues is pegged at $2.56 billion, indicating 67.9% growth year over year. The top line is likely to have been aided by continued recovery in air-travel demand and improvement in passenger revenues.
These tailwinds have enabled ALK’s management to raise second-quarter revenue guidance. The company now expects total revenues to increase 12-14% from the second-quarter 2019 actuals (earlier expectation was for a 5-8% increase). Load factor is anticipated in the 87-88% range (earlier expectation was in the 85-88% band).
On the flip side, escalating operating expenses, primarily due to rising fuel prices, continue to bother Alaska Air’s bottom line. The carrier now expects its second-quarter economic fuel cost in the $3.65-$3.68 range compared with the initial estimate of $3.25-$3.30. The Zacks Consensus Estimate for economic fuel cost per gallon is pegged at $2.78.
What Our Model Says
Our proven model predicts an earnings beat for Alaska Air 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Alaska Air has an Earnings ESP of +0.54% and a Zacks Rank #3.
Highlights of Q1
Alaska Air incurred a loss (excluding 19 cents from non-recurring items) of $1.33 per share in the first quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of $1.58. In the year-ago period, ALK had incurred a loss of $3.51.
Operating revenues of $1,681 million outperformed the Zacks Consensus Estimate of $1,669.3 million. The top line surged more than 100% year over year, with passenger revenues accounting for 89.9% of the top line, soaring more than 100% owing to an improvement in air-travel demand from the pandemic-induced lows.
Other Stocks to Consider
Here are a few other stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these too have the right combination of elements to beat on their second-quarter 2022 earnings:
C.H. Robinson Worldwide (CHRW - Free Report) has an Earnings ESP of +4.20% and a Zacks Rank #2. CHRW will release results on Jul 27. You can see the complete list of today’s Zacks #1 Rank stocks here.
C.H. Robinson has an expected earnings growth rate of 16.6% for the current year. CHRW delivered a trailing four-quarter earnings surprise of 17.1%, on average.
CHRW has a long-term earnings growth rate of 9%.
Kirby (KEX - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank #2. KEX will release results on Jul 28.
Kirby has an expected earnings growth rate of 282.14% for the current year. KEX delivered a trailing four-quarter earnings surprise of 7.7%, on average.
KEX has a long-term earnings growth rate of 12%.
Southwest Airlines Co.(LUV - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank #3. Improved air-travel demand is likely to aid LUV’s results.LUV will release results on Jul 28.
Southwest has an expected earnings growth rate of 226.05% for the current year. LUV delivered a trailing four-quarter earnings surprise of 33.5%, on average.
Southwest has a long-term earnings growth rate of 6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.