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Gol Linhas (GOL) Q4 Loss Wider Than Estimates, Revenues Miss
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Gol Linhas Aereas Inteligentes S.A. incurred a loss of 35 cents per share in the fourth quarter of 2022, wider than the Zacks Consensus Estimate of a loss of 19 cents. In the year-ago quarter, Gol had incurred a loss of 62 cents per share.
Net operating revenues of $898 million lagged the Zacks Consensus Estimate of $916 million. With people again taking to the skies, the top line improved year over year.
Gol Linhas Aereas Inteligentes S.A. Price, Consensus and EPS Surprise
Revenues from passenger transportation, accounting for 92.7% of total revenues, rose 56.1%, thanks to continued recovery in air-travel demand in Brazil. Cargo and other revenues surged 200.2%.
Gol Linhas transported 7.8 million passengers in the fourth quarter, up 18.6% from the year-ago number.
Consolidated revenue passenger kilometers, the measure for revenues generated per kilometer per passenger, increased 25.1% from the fourth quarter of 2021. Consolidated available seat kilometers (ASK), which measure an airline's passenger-carrying capacity, also rose 29% year over year with expanded domestic capacity.
Gol Linhas’ total load factor (percentage of seats filled with passengers) was 80.1% in the reported quarter. The net yield climbed 24.8% year over year.
Net passenger revenues per ASK ascended 21%, while net revenues per ASK jumped 25.3%. The average fuel price per liter increased 43.6%. Cost per ASK fell 32.1% year over year. Excluding fuel, the metric declined 52.3%.
Total operating expenses decreased 12.3% year over year.
Gol Linhas exited the fourth quarter with total liquidity (cash and cash equivalents, cash investments, restricted cash, accounts receivable and securities and receivables) of R$4.1 billion compared with R$3.7 billion at the end of the prior quarter. During the fourth quarter, operating activities generated cash of R$0.8 billion compared with R$0.5 billion at the end of the prior quarter.
At the reported-quarter end, Gol Linhas’ fleet comprised 146 Boeing 737 aircraft (106 NGs, 38 MAXs and 2 Cargo NGs). The average age of the fleet was 10.4 years.
2023 Outlook
For first-quarter 2023, GOL expects capacity to increase 11-13% year over year. GOL estimates the load factor to be 82% in the current quarter. The fuel price per liter is predicted to be R$5.7 in the current quarter.
Net capital investments are predicted to be R$150 million. Total net revenues are expected to be R$4.8 billion in the current quarter. The pre-tax margin is estimated to be 1% in the quarter. EBITDA margin and EBIT margin are anticipated to be 22% and 12%, respectively.
For 2023, GOL has updated its guidance. Gol Linhas now expects capacity to increase 15-20% (prior view: 20-25%) year over year in 2023. GOL now estimates the load factor to be 81% (prior view: 80%) in the current year. The fuel price per liter is now predicted to be R$5.4 (prior view: R$5.3) in the current year.
Net capital investments are predicted to be R$600 million (prior view: R$700 million). Total net revenues are now expected to be R$19.5 billion (prior view: R$20 billion) in the current year. The pre-tax margin is estimated to be 3% (prior view: 4%) in the year.
EBITDA margin and EBIT margin are still anticipated to be 24% and 14%, respectively.
United Airlines’ (UAL - Free Report) fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million. UAL’s revenues increased 51.37% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from fourth-quarter 2019 (pre-coronavirus) levels.
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2022 earnings of $1.92 per share missed the Zacks Consensus Estimate of $2.45 and declined 16% year over year.
JBHT’s total operating revenues of $3,649.62 million also lagged the Zacks Consensus Estimate of $3,796.8 million. The top line jumped 4.4% year over year. Total operating revenues, excluding fuel surcharges, fell 2.9% year over year.
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Gol Linhas (GOL) Q4 Loss Wider Than Estimates, Revenues Miss
Gol Linhas Aereas Inteligentes S.A. incurred a loss of 35 cents per share in the fourth quarter of 2022, wider than the Zacks Consensus Estimate of a loss of 19 cents. In the year-ago quarter, Gol had incurred a loss of 62 cents per share.
Net operating revenues of $898 million lagged the Zacks Consensus Estimate of $916 million. With people again taking to the skies, the top line improved year over year.
Gol Linhas Aereas Inteligentes S.A. Price, Consensus and EPS Surprise
Gol Linhas Aereas Inteligentes S.A. price-consensus-eps-surprise-chart | Gol Linhas Aereas Inteligentes S.A. Quote
Revenues from passenger transportation, accounting for 92.7% of total revenues, rose 56.1%, thanks to continued recovery in air-travel demand in Brazil. Cargo and other revenues surged 200.2%.
Gol Linhas transported 7.8 million passengers in the fourth quarter, up 18.6% from the year-ago number.
Consolidated revenue passenger kilometers, the measure for revenues generated per kilometer per passenger, increased 25.1% from the fourth quarter of 2021. Consolidated available seat kilometers (ASK), which measure an airline's passenger-carrying capacity, also rose 29% year over year with expanded domestic capacity.
Gol Linhas’ total load factor (percentage of seats filled with passengers) was 80.1% in the reported quarter. The net yield climbed 24.8% year over year.
Net passenger revenues per ASK ascended 21%, while net revenues per ASK jumped 25.3%. The average fuel price per liter increased 43.6%. Cost per ASK fell 32.1% year over year. Excluding fuel, the metric declined 52.3%.
Total operating expenses decreased 12.3% year over year.
Gol Linhas exited the fourth quarter with total liquidity (cash and cash equivalents, cash investments, restricted cash, accounts receivable and securities and receivables) of R$4.1 billion compared with R$3.7 billion at the end of the prior quarter. During the fourth quarter, operating activities generated cash of R$0.8 billion compared with R$0.5 billion at the end of the prior quarter.
At the reported-quarter end, Gol Linhas’ fleet comprised 146 Boeing 737 aircraft (106 NGs, 38 MAXs and 2 Cargo NGs). The average age of the fleet was 10.4 years.
2023 Outlook
For first-quarter 2023, GOL expects capacity to increase 11-13% year over year. GOL estimates the load factor to be 82% in the current quarter. The fuel price per liter is predicted to be R$5.7 in the current quarter.
Net capital investments are predicted to be R$150 million. Total net revenues are expected to be R$4.8 billion in the current quarter. The pre-tax margin is estimated to be 1% in the quarter. EBITDA margin and EBIT margin are anticipated to be 22% and 12%, respectively.
For 2023, GOL has updated its guidance. Gol Linhas now expects capacity to increase 15-20% (prior view: 20-25%) year over year in 2023. GOL now estimates the load factor to be 81% (prior view: 80%) in the current year. The fuel price per liter is now predicted to be R$5.4 (prior view: R$5.3) in the current year.
Net capital investments are predicted to be R$600 million (prior view: R$700 million). Total net revenues are now expected to be R$19.5 billion (prior view: R$20 billion) in the current year. The pre-tax margin is estimated to be 3% (prior view: 4%) in the year.
EBITDA margin and EBIT margin are still anticipated to be 24% and 14%, respectively.
Currently, Gol Linhas carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Transportation Companies
United Airlines’ (UAL - Free Report) fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million. UAL’s revenues increased 51.37% year over year owing to upbeat air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from fourth-quarter 2019 (pre-coronavirus) levels.
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2022 earnings of $1.92 per share missed the Zacks Consensus Estimate of $2.45 and declined 16% year over year.
JBHT’s total operating revenues of $3,649.62 million also lagged the Zacks Consensus Estimate of $3,796.8 million. The top line jumped 4.4% year over year. Total operating revenues, excluding fuel surcharges, fell 2.9% year over year.