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Earnings season has picked up a notable amount of steam, with a significant amount of companies slated to report this week. This week is a busy one in particular, with every sector of the economy being represented.
Soon, on Thursday, April 27th, we’ll hear from American Airlines (AAL - Free Report) before the market opens. We’ve already heard from a few peers, including Delta Air Lines (DAL - Free Report) and United Airlines (UAL - Free Report) . Below is a chart illustrating the performance of all three year-to-date, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
It raises a valid question: how does American Airlines shape up heading into its quarterly release? We can use results from DAL and UAL as a small guide. Let’s take a closer look.
Delta Air Lines
Delta Air Lines posted somewhat weak results, falling short of the Zacks Consensus EPS Estimate by roughly 14%. Further, quarterly revenue totaled $12.8 billion, roughly in line with expectations and improving more than 30% year-over-year.
Image Source: Zacks Investment Research
Despite the miss, DAL shares found buyers post-earnings, as we can see illustrated in the chart below. The euphoria seems to have worn off a bit though, with shares now in a downtrend.
Image Source: Zacks Investment Research
Following the release, analysts have become bullish on DAL’s upcoming quarterly release in mid-July, with six positive earnings estimate revisions hitting the tape as of late.
Image Source: Zacks Investment Research
United Airlines
United Airlines posted better-than-expected results, exceeding the Zacks Consensus EPS Estimate by nearly 14%. In addition, United Airlines generated $11.4 billion in revenue throughout the period, a tick above expectations and improving nearly 50% year-over-year.
Image Source: Zacks Investment Research
Like DAL, the market took the results in stride, sending shares soaring post-earnings. Still, they’ve since cooled notably, as we can see below.
Image Source: Zacks Investment Research
Analysts must’ve been impressed with the quarterly results, causing them to raise their expectations notably for UAL’s upcoming release in mid-July.
Image Source: Zacks Investment Research
American Airlines
Analysts have been bullish for the quarter to be reported, with the quarterly EPS Estimate being revised 500% higher since February of this year. The Zacks Consensus EPS Estimate indicates a 100% jump in earnings Y/Y.
Image Source: Zacks Investment Research
Further, the company is forecasted to have generated roughly $12.3 billion in revenue, implying an improvement of more than 35% from year-ago quarterly sales of $8.9 billion. The quarterly revenue estimate has been revised 1.4% higher since February, reflecting optimism.
Image Source: Zacks Investment Research
Bottom Line
As we can see in the charts above, investors initially cheered on results of Delta Air Lines (DAL - Free Report) and United Airlines (UAL - Free Report) . Since the releases, the euphoria seems to have faded, with shares of both companies facing selling pressure.
American Airlines is expected to see a notable recovery in earnings, a reflection of a recovery in travel demand and lower fuel costs providing a nice boost. Heading into the release, American Airlines (AAL - Free Report) is a Zacks Rank #2 (Buy) with an Earnings ESP Score of 85.7%.
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American Airlines Preview: EPS Beat Inbound?
Earnings season has picked up a notable amount of steam, with a significant amount of companies slated to report this week. This week is a busy one in particular, with every sector of the economy being represented.
Soon, on Thursday, April 27th, we’ll hear from American Airlines (AAL - Free Report) before the market opens. We’ve already heard from a few peers, including Delta Air Lines (DAL - Free Report) and United Airlines (UAL - Free Report) . Below is a chart illustrating the performance of all three year-to-date, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
It raises a valid question: how does American Airlines shape up heading into its quarterly release? We can use results from DAL and UAL as a small guide. Let’s take a closer look.
Delta Air Lines
Delta Air Lines posted somewhat weak results, falling short of the Zacks Consensus EPS Estimate by roughly 14%. Further, quarterly revenue totaled $12.8 billion, roughly in line with expectations and improving more than 30% year-over-year.
Image Source: Zacks Investment Research
Despite the miss, DAL shares found buyers post-earnings, as we can see illustrated in the chart below. The euphoria seems to have worn off a bit though, with shares now in a downtrend.
Image Source: Zacks Investment Research
Following the release, analysts have become bullish on DAL’s upcoming quarterly release in mid-July, with six positive earnings estimate revisions hitting the tape as of late.
Image Source: Zacks Investment Research
United Airlines
United Airlines posted better-than-expected results, exceeding the Zacks Consensus EPS Estimate by nearly 14%. In addition, United Airlines generated $11.4 billion in revenue throughout the period, a tick above expectations and improving nearly 50% year-over-year.
Image Source: Zacks Investment Research
Like DAL, the market took the results in stride, sending shares soaring post-earnings. Still, they’ve since cooled notably, as we can see below.
Image Source: Zacks Investment Research
Analysts must’ve been impressed with the quarterly results, causing them to raise their expectations notably for UAL’s upcoming release in mid-July.
Image Source: Zacks Investment Research
American Airlines
Analysts have been bullish for the quarter to be reported, with the quarterly EPS Estimate being revised 500% higher since February of this year. The Zacks Consensus EPS Estimate indicates a 100% jump in earnings Y/Y.
Image Source: Zacks Investment Research
Further, the company is forecasted to have generated roughly $12.3 billion in revenue, implying an improvement of more than 35% from year-ago quarterly sales of $8.9 billion. The quarterly revenue estimate has been revised 1.4% higher since February, reflecting optimism.
Image Source: Zacks Investment Research
Bottom Line
As we can see in the charts above, investors initially cheered on results of Delta Air Lines (DAL - Free Report) and United Airlines (UAL - Free Report) . Since the releases, the euphoria seems to have faded, with shares of both companies facing selling pressure.
American Airlines is expected to see a notable recovery in earnings, a reflection of a recovery in travel demand and lower fuel costs providing a nice boost. Heading into the release, American Airlines (AAL - Free Report) is a Zacks Rank #2 (Buy) with an Earnings ESP Score of 85.7%.