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AZUL Rides on Improving Air-Travel Demand, Expenses Ail
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Azul S.A. (AZUL - Free Report) is benefiting from a steady recovery in air-travel demand, both on the domestic and international fronts.
Azul incurred a loss (excluding $2.49 from non-recurring items) of 94 cents per share in the second quarter of 2022, wider than the Zacks Consensus Estimate of a loss of 75 cents. However, the loss narrowed year over year.
Total revenues of $800 million missed the Zacks Consensus Estimate of $805.4 million but increased more than 100% year over year as air-travel demand improved, courtesy of widespread vaccination programs in Brazil.
Azul has been seeing a steady rebound in air-travel demand, particularly in its domestic markets. Mainly owing to this improvement in domestic demand, consolidated traffic and capacity increased 63.8% and 59.6%, respectively, in the second quarter of 2022 from the comparable year-ago period levels. Azul’s domestic traffic and capacity increased 50% and 51.6%, in the June quarter on a year-over-year basis. Azul’s international traffic and capacity surged more than 100% in the June quarter on a year-over-year basis.
With more people taking to the skies, Azul’s passenger revenues, contributing 90.7% to the top line, surged 151% year over year (on higher total capacity) in second-quarter 2022. The surge was driven by 59.6% higher total capacity.
Robust growth in e-commerce is boosting revenues at Azul’s cargo business unit. With e-commerce growth continuing in second-quarter 2022, cargo and other revenues rose 28.6% year over year, primarily owing to upbeat demand for Azul’s logistics solutions.
On the flip side, the company’s total operating expenses surged 80.2% in second-quarter 2022 from its year-ago levels. Majorly, aircraft fuel rose 178.7% in this segment. Such escalating operating expenses might hurt the bottom-line results.
Some other top-ranked stocks in the broader Zacks Transportation sector that investors can consider are GATX Corporation (GATX - Free Report) , Triton International Limited and Teekay Tankers Ltd. (TNK - Free Report) ,each carrying a Zacks Rank #2.
GATX Corporation has an expected earnings growth rate of 17.8% for the current year. GATX delivered a trailing four-quarter earnings surprise of 28.9%, on average.
The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 7.9% over the past year.
Triton has an expected earnings growth rate of 22.4% for the current year. TRTN delivered a trailing four-quarter earnings surprise of 7.5%, on average. TRTN has a long-term expected growth rate of 10%.
The Zacks Consensus Estimate for TRTN’s current-year earnings has improved 4.2% over the past 90 days. Shares of TRTN have increased 20.9% over the past year.
Teekay Tankers has an expected earnings growth rate of 140.1% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. TNK has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 120.3% over the past year.
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AZUL Rides on Improving Air-Travel Demand, Expenses Ail
Azul S.A. (AZUL - Free Report) is benefiting from a steady recovery in air-travel demand, both on the domestic and international fronts.
Azul incurred a loss (excluding $2.49 from non-recurring items) of 94 cents per share in the second quarter of 2022, wider than the Zacks Consensus Estimate of a loss of 75 cents. However, the loss narrowed year over year.
Total revenues of $800 million missed the Zacks Consensus Estimate of $805.4 million but increased more than 100% year over year as air-travel demand improved, courtesy of widespread vaccination programs in Brazil.
AZUL Price, Consensus and EPS Surprise
AZUL price-consensus-eps-surprise-chart | AZUL Quote
How is Azul Doing?
Azul has been seeing a steady rebound in air-travel demand, particularly in its domestic markets. Mainly owing to this improvement in domestic demand, consolidated traffic and capacity increased 63.8% and 59.6%, respectively, in the second quarter of 2022 from the comparable year-ago period levels. Azul’s domestic traffic and capacity increased 50% and 51.6%, in the June quarter on a year-over-year basis. Azul’s international traffic and capacity surged more than 100% in the June quarter on a year-over-year basis.
With more people taking to the skies, Azul’s passenger revenues, contributing 90.7% to the top line, surged 151% year over year (on higher total capacity) in second-quarter 2022. The surge was driven by 59.6% higher total capacity.
Robust growth in e-commerce is boosting revenues at Azul’s cargo business unit. With e-commerce growth continuing in second-quarter 2022, cargo and other revenues rose 28.6% year over year, primarily owing to upbeat demand for Azul’s logistics solutions.
On the flip side, the company’s total operating expenses surged 80.2% in second-quarter 2022 from its year-ago levels. Majorly, aircraft fuel rose 178.7% in this segment. Such escalating operating expenses might hurt the bottom-line results.
Zacks Rank and Other Stocks to Consider
Currently, Azul carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the broader Zacks Transportation sector that investors can consider are GATX Corporation (GATX - Free Report) , Triton International Limited and Teekay Tankers Ltd. (TNK - Free Report) , each carrying a Zacks Rank #2.
GATX Corporation has an expected earnings growth rate of 17.8% for the current year. GATX delivered a trailing four-quarter earnings surprise of 28.9%, on average.
The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 7.9% over the past year.
Triton has an expected earnings growth rate of 22.4% for the current year. TRTN delivered a trailing four-quarter earnings surprise of 7.5%, on average. TRTN has a long-term expected growth rate of 10%.
The Zacks Consensus Estimate for TRTN’s current-year earnings has improved 4.2% over the past 90 days. Shares of TRTN have increased 20.9% over the past year.
Teekay Tankers has an expected earnings growth rate of 140.1% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. TNK has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 120.3% over the past year.