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Azul has a dismal earnings record. The carrier’s bottom line has missed the Zacks Consensus Estimate in three of the last four quarters (beat once). It has a trailing four-quarter negative earnings surprise of 61.2%, on average.
The Zacks Consensus Estimate is currently pegged at a loss of 42 cents per share. The loss has widened in the past 60 days from a loss of 31 cents.
Against this backdrop, let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Passenger revenues (which account for the bulk of the company’s top line) are expected to have surged in the March quarter owing to rising domestic and international air-travel demand.
On the flip side, cargo revenues are likely to have decreased in the quarter under review due to a reduction in international cargo capacity. The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is currently pegged at $930.9 million, implying a rise of 52.4% year over year.
Moreover, the current scenario of rising fuel costs does not bode well for the airline and is likely to have hurt the bottom line in the quarter to be reported.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Azul this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. But that is not the case here.
Azul has an Earnings ESP of -33.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Azul incurred a loss (excluding $1.14 from non-recurring items) of 83 cents per share in fourth-quarter 2022, wider than the Zacks Consensus Estimate of a loss of 26 cents. Loss per share was 58 cents in the fourth quarter of 2021. Total revenues of $846.3 million in fourth-quarter 2022 missed the Zacks Consensus Estimate of $899 million but increased 26.6% year over year on the back of improving air-travel demand.
Q1 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), respectively.A decline of 17% in revenue per load in Truckload (JBT) also added to the woes. Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%. JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel price and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago as air-travel demand was not so buoyant back then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. However, driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
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AZUL Gears Up to Report Q1 Earnings: Here's What to Expect
Azul S.A. (AZUL - Free Report) is scheduled to report first-quarter 2023 financial numbers on May 15.
Azul has a dismal earnings record. The carrier’s bottom line has missed the Zacks Consensus Estimate in three of the last four quarters (beat once). It has a trailing four-quarter negative earnings surprise of 61.2%, on average.
The Zacks Consensus Estimate is currently pegged at a loss of 42 cents per share. The loss has widened in the past 60 days from a loss of 31 cents.
AZUL Price and EPS Surprise
AZUL price-eps-surprise | AZUL Quote
Against this backdrop, let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Passenger revenues (which account for the bulk of the company’s top line) are expected to have surged in the March quarter owing to rising domestic and international air-travel demand.
On the flip side, cargo revenues are likely to have decreased in the quarter under review due to a reduction in international cargo capacity. The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is currently pegged at $930.9 million, implying a rise of 52.4% year over year.
Moreover, the current scenario of rising fuel costs does not bode well for the airline and is likely to have hurt the bottom line in the quarter to be reported.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Azul this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. But that is not the case here.
Azul has an Earnings ESP of -33.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Azul carries a Zacks Rank #3 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Highlights of Q4
Azul incurred a loss (excluding $1.14 from non-recurring items) of 83 cents per share in fourth-quarter 2022, wider than the Zacks Consensus Estimate of a loss of 26 cents. Loss per share was 58 cents in the fourth quarter of 2021. Total revenues of $846.3 million in fourth-quarter 2022 missed the Zacks Consensus Estimate of $899 million but increased 26.6% year over year on the back of improving air-travel demand.
Q1 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), respectively.A decline of 17% in revenue per load in Truckload (JBT) also added to the woes. Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%. JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel price and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago as air-travel demand was not so buoyant back then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. However, driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
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