We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Gol Linhas (GOL) Rides on Air-Travel Demand, Fuel Costs Ail
Read MoreHide Full Article
Gol Linhas (GOL - Free Report) is benefiting from the uptick in air-travel demand (particularly on the domestic front). The improvement in air-travel demand in Brazil is a huge boon for Gol Linhas, which currently carries a Zacks Rank #3 (Hold). In the second quarter of 2022, revenues from passenger transportation, which accounted for 92.4% of total revenues, surged 237.5% year over year.
Continuing this favorable trend, Gol Linhas’ consolidated traffic in September increased 41.4% year over year. To match the increased demand situation, GOL is expanding its capacity. In the same month, capacity grew 36.9% year over year. Since traffic growth was more than capacity expansion, the load factor improved 2.6 percentage points to 81.7% last month.
The upbeat traffic in its domestic markets is leading to a rosy scenario on a consolidated basis. In September, domestic traffic and capacity improved 27% and 23%, respectively. On the domestic front, 27.9% more passengers boarded GOL’s flights in September 2022.
On the flip side, rising fuel costs pose a threat to Gol Linhas’ bottom line. The average fuel price per liter increased 80.5% year over year in the second quarter. Primarily due to a significant increase in fuel costs, total operating expenses surged 86.8% year over year. With oil prices moving north, the forecast for current-year fuel price per liter has been raised. The metric is now predicted to be R$5.7 in 2022 (earlier expectation was R$4.3).
ZTO Express has an expected earnings growth rate of 22.9% for the current year. ZTO delivered a trailing four-quarter earnings surprise of 8.9%, on average.
The Zacks Consensus Estimate for ZTO’s current-year earnings has improved 4.4% over the past 90 days. Shares of ZTO have lost 19.6% over the past year.
Air Lease has a long-term expected growth rate of 16.9%. AL delivered a trailing four-quarter earnings surprise of 29.2%, on average.
Shares of AL have lost 20.8% over the past year.
Teekay Tankers has an expected earnings growth rate of 172.86% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. Teekay Tankers 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 88.3% over the past year.
In-Depth Zacks Research for the Tickers Above
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Gol Linhas (GOL) Rides on Air-Travel Demand, Fuel Costs Ail
Gol Linhas (GOL - Free Report) is benefiting from the uptick in air-travel demand (particularly on the domestic front). The improvement in air-travel demand in Brazil is a huge boon for Gol Linhas, which currently carries a Zacks Rank #3 (Hold). In the second quarter of 2022, revenues from passenger transportation, which accounted for 92.4% of total revenues, surged 237.5% year over year.
Continuing this favorable trend, Gol Linhas’ consolidated traffic in September increased 41.4% year over year. To match the increased demand situation, GOL is expanding its capacity. In the same month, capacity grew 36.9% year over year. Since traffic growth was more than capacity expansion, the load factor improved 2.6 percentage points to 81.7% last month.
The upbeat traffic in its domestic markets is leading to a rosy scenario on a consolidated basis. In September, domestic traffic and capacity improved 27% and 23%, respectively. On the domestic front, 27.9% more passengers boarded GOL’s flights in September 2022.
On the flip side, rising fuel costs pose a threat to Gol Linhas’ bottom line. The average fuel price per liter increased 80.5% year over year in the second quarter. Primarily due to a significant increase in fuel costs, total operating expenses surged 86.8% year over year. With oil prices moving north, the forecast for current-year fuel price per liter has been raised. The metric is now predicted to be R$5.7 in 2022 (earlier expectation was R$4.3).
Stocks to Consider
Some better-ranked stocks from the broader Zacks Transportation sector are ZTO Express (ZTO - Free Report) , Air Lease Corporation (AL - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ZTO Express has an expected earnings growth rate of 22.9% for the current year. ZTO delivered a trailing four-quarter earnings surprise of 8.9%, on average.
The Zacks Consensus Estimate for ZTO’s current-year earnings has improved 4.4% over the past 90 days. Shares of ZTO have lost 19.6% over the past year.
Air Lease has a long-term expected growth rate of 16.9%. AL delivered a trailing four-quarter earnings surprise of 29.2%, on average.
Shares of AL have lost 20.8% over the past year.
Teekay Tankers has an expected earnings growth rate of 172.86% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. Teekay Tankers 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 88.3% over the past year.