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Gol Linhas (GOL) Likely to Incur Q3 Loss Due to High Fuel Costs
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Gol Linhas Aereas Inteligentes S.A. provided its expectations for the third quarter of 2022. Detailed results will be out on Oct 27.
For the third quarter of 2022, Gol Linhas anticipates EBITDA margin to be approximately 15% and the EBIT margin to be roughly 5%. GOL estimates an average fuel price per liter to be R$ 6.62.
Gol Linhas, currently carrying a Zacks Rank #4 (Sell), anticipates a loss per share of R$1.8, indicating a loss Per American Depositary Shares of 70 cents for the third quarter. The Zacks Consensus Estimate for the same is pegged at a loss of 29 cents per share. The unfavorable forecast is mainly due to high fuel costs.
Fuel unit costs are anticipated to grow almost 87% from the prior-year actuals, backed by an 89% increase in the average jet fuel price. However, this steep rise is partially mitigated by a reduction of nearly 4% in fuel consumption per flight hour owing to the presence of more 737-MAXs in the fleet. Non-fuel unit costs are likely to decrease approximately 25% in the September quarter, primarily on higher capacity and productivity.
Passenger unit revenues for the to-be-reported quarter are expected to increase roughly 45% from the year-ago reported figure, driven by upbeat domestic air-travel demand (mainly for leisure) and the gradual recovery in international travel. Led by higher passenger volumes, total demand, measured in revenue passenger kilometers, is expected to increase approximately 42%.
Total unit revenues are also anticipated to increase nearly 45% from the prior-year tally. Other revenues (cargo, loyalty, others) are likely to account for approximately 6% of the top line.
Total capacity (measured in available seat kilometers) is likely to increase approximately 43%. Capacity in terms of seats is expected to increase roughly 40% from the third-quarter 2021 actuals.
ZTO Express is being aided by rapid growth in parcel volumes. ZTO anticipates parcel volumes in the range of 24.96-25.86 billion during 2022, indicating a rise of 12-16% from the year-ago reported figure. Its efforts to reward its shareholders are also encouraging.
The Zacks Consensus Estimate for ZTO Express’ 2022 earnings has been revised 4.4% upward in the past 60 days. Earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 29.1%.
Higher volumes owing to a better freight market environment bolster Forward Air’s top line. Thanks to growth in its operations, FWRD is committed to rewarding its shareholders with dividends and share buybacks. In February, FWRD’s board approved a 14% hike in its quarterly dividend payment, taking the total to 24 cents per share.
The Zacks Consensus Estimate for Forward Air’s 2022 earnings has been revised 3% upward in the past 60 days. FWRD’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 5.6%.
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Gol Linhas (GOL) Likely to Incur Q3 Loss Due to High Fuel Costs
Gol Linhas Aereas Inteligentes S.A. provided its expectations for the third quarter of 2022. Detailed results will be out on Oct 27.
For the third quarter of 2022, Gol Linhas anticipates EBITDA margin to be approximately 15% and the EBIT margin to be roughly 5%. GOL estimates an average fuel price per liter to be R$ 6.62.
Gol Linhas, currently carrying a Zacks Rank #4 (Sell), anticipates a loss per share of R$1.8, indicating a loss Per American Depositary Shares of 70 cents for the third quarter. The Zacks Consensus Estimate for the same is pegged at a loss of 29 cents per share. The unfavorable forecast is mainly due to high fuel costs.
Fuel unit costs are anticipated to grow almost 87% from the prior-year actuals, backed by an 89% increase in the average jet fuel price. However, this steep rise is partially mitigated by a reduction of nearly 4% in fuel consumption per flight hour owing to the presence of more 737-MAXs in the fleet. Non-fuel unit costs are likely to decrease approximately 25% in the September quarter, primarily on higher capacity and productivity.
Passenger unit revenues for the to-be-reported quarter are expected to increase roughly 45% from the year-ago reported figure, driven by upbeat domestic air-travel demand (mainly for leisure) and the gradual recovery in international travel. Led by higher passenger volumes, total demand, measured in revenue passenger kilometers, is expected to increase approximately 42%.
Total unit revenues are also anticipated to increase nearly 45% from the prior-year tally. Other revenues (cargo, loyalty, others) are likely to account for approximately 6% of the top line.
Total capacity (measured in available seat kilometers) is likely to increase approximately 43%. Capacity in terms of seats is expected to increase roughly 40% from the third-quarter 2021 actuals.
Key Picks
Some better-ranked stocks in the Zacks Transportation sector are ZTO Express (Cayman) (ZTO - Free Report) and Forward Air Corporation (FWRD - Free Report) , both 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 is being aided by rapid growth in parcel volumes. ZTO anticipates parcel volumes in the range of 24.96-25.86 billion during 2022, indicating a rise of 12-16% from the year-ago reported figure. Its efforts to reward its shareholders are also encouraging.
The Zacks Consensus Estimate for ZTO Express’ 2022 earnings has been revised 4.4% upward in the past 60 days. Earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 29.1%.
Higher volumes owing to a better freight market environment bolster Forward Air’s top line. Thanks to growth in its operations, FWRD is committed to rewarding its shareholders with dividends and share buybacks. In February, FWRD’s board approved a 14% hike in its quarterly dividend payment, taking the total to 24 cents per share.
The Zacks Consensus Estimate for Forward Air’s 2022 earnings has been revised 3% upward in the past 60 days. FWRD’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 5.6%.