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Why Is Copa Holdings (CPA) Down 2.7% Since Last Earnings Report?
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It has been about a month since the last earnings report for Copa Holdings (CPA - Free Report) . Shares have lost about 2.7% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Copa Holdings due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Copa Holdings Beats on Q2 Earnings
Copa Holdings reported second-quarter 2022 earnings (excluding $2.69 from non-recurring items) of 32 cents per share, which surpassed the Zacks Consensus Estimate of 27 cents. In the year-ago quarter, CPA had incurred a loss of 38 cents per share due to coronavirus-led depressed air-travel demand. Quarterly revenues of $693.4 million beat the Zacks Consensus Estimate of $674.5 million and rose significantly year over year , courtesy of improved air-travel demand.
Below, we present all comparisons (in % terms) with second-quarter 2019 levels (pre-coronavirus).
Passenger revenues (contributed 94.7% to the top line) increased 5.9% owing to higher yields (up 10.1%). Cargo and mail revenues jumped 62.4% to $26.7 million, owing to higher cargo volumes and yields. Total revenues improved 20% in the reported quarter. On a consolidated basis, traffic (measured in revenue passenger miles or RPMs) fell 3.8%. As traffic decline was more than the amount of capacity contraction (3.4%), load factor contracted 0.4 percentage points to 84.8% in the reported quarter. Passenger revenue per available seat miles increased 9.6% to 11 cents. Additionally, revenue per available seat mile (RASM) increased 11. 3% to 11.6 cents. Cost per available seat mile (CASM) increased 19.9%. Excluding fuel, the metric dipped 4.6%. Average fuel price per liter soared 86.1% to $4.14.
Total operating expenses increased 15.8% to $651.1 million due to the 67% increase in fuel costs. Expenses on wages, salaries and other employee benefits fell 17.9% on reduced headcount. Sales and distribution costs increased 9.6% due to higher sales. Passenger servicing costs dropped 37%. Flight operation costs decreased 5.4%.
Copa Holdings exited the second quarter with cash and cash equivalents of $134.1 million compared with $211.08 million at the end of December 2021. Total debt, including lease liabilities, was $1.6 billion at the end of the second quarter.CPA exited the second quarter with a consolidated fleet of 94 aircraft comprising68 Boeing 737-800s, 17 Boeing 737 MAX 9s,and nine Boeing 737-700s. During the second quarter, the carrier took delivery of one Boeing 737 MAX 9 aircraft.
Copa Holdings expects third-quarter operating margin in the 16-18% range. CPA expects capacity to be 6.4 billion, equivalent to 100% of the third-quarter 2019 capacity. Load factor is estimated to be around 86% in the September quarter. Fuel price is estimated to be $3.80 per gallon.
For the full year, CPA expects capacity to reach approximately 98% of the 2019 level.CASM, excluding fuel, is anticipated to be 5.9 cents in 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 114.12% due to these changes.
VGM Scores
At this time, Copa Holdings has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Copa Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Copa Holdings (CPA) Down 2.7% Since Last Earnings Report?
It has been about a month since the last earnings report for Copa Holdings (CPA - Free Report) . Shares have lost about 2.7% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Copa Holdings due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Copa Holdings Beats on Q2 Earnings
Copa Holdings reported second-quarter 2022 earnings (excluding $2.69 from non-recurring items) of 32 cents per share, which surpassed the Zacks Consensus Estimate of 27 cents. In the year-ago quarter, CPA had incurred a loss of 38 cents per share due to coronavirus-led depressed air-travel demand. Quarterly revenues of $693.4 million beat the Zacks Consensus Estimate of $674.5 million and rose significantly year over year , courtesy of improved air-travel demand.
Below, we present all comparisons (in % terms) with second-quarter 2019 levels (pre-coronavirus).
Passenger revenues (contributed 94.7% to the top line) increased 5.9% owing to higher yields (up 10.1%). Cargo and mail revenues jumped 62.4% to $26.7 million, owing to higher cargo volumes and yields. Total revenues improved 20% in the reported quarter. On a consolidated basis, traffic (measured in revenue passenger miles or RPMs) fell 3.8%. As traffic decline was more than the amount of capacity contraction (3.4%), load factor contracted 0.4 percentage points to 84.8% in the reported quarter. Passenger revenue per available seat miles increased 9.6% to 11 cents. Additionally, revenue per available seat mile (RASM) increased 11. 3% to 11.6 cents. Cost per available seat mile (CASM) increased 19.9%. Excluding fuel, the metric dipped 4.6%. Average fuel price per liter soared 86.1% to $4.14.
Total operating expenses increased 15.8% to $651.1 million due to the 67% increase in fuel costs. Expenses on wages, salaries and other employee benefits fell 17.9% on reduced headcount. Sales and distribution costs increased 9.6% due to higher sales. Passenger servicing costs dropped 37%. Flight operation costs decreased 5.4%.
Copa Holdings exited the second quarter with cash and cash equivalents of $134.1 million compared with $211.08 million at the end of December 2021. Total debt, including lease liabilities, was $1.6 billion at the end of the second quarter.CPA exited the second quarter with a consolidated fleet of 94 aircraft comprising68 Boeing 737-800s, 17 Boeing 737 MAX 9s,and nine Boeing 737-700s. During the second quarter, the carrier took delivery of one Boeing 737 MAX 9 aircraft.
Copa Holdings expects third-quarter operating margin in the 16-18% range. CPA expects capacity to be 6.4 billion, equivalent to 100% of the third-quarter 2019 capacity. Load factor is estimated to be around 86% in the September quarter. Fuel price is estimated to be $3.80 per gallon.
For the full year, CPA expects capacity to reach approximately 98% of the 2019 level.CASM, excluding fuel, is anticipated to be 5.9 cents in 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 114.12% due to these changes.
VGM Scores
At this time, Copa Holdings has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Copa Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.