A month has gone by since the last earnings report for Hawaiian Holdings (
HA Quick Quote HA - Free Report) . Shares have added about 0.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Hawaiian Holdings due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Narrower-Than-Expected Loss in Q1
Hawaiian Holdings’ first-quarter 2023 loss (excluding 26 cents from non-recurring items) of $2.17 per share which was narrower than the Zacks Consensus Estimate of a loss of $2.28. In the year-ago quarter, HA posted a loss of $2.54.
Quarterly revenues of $612.6 million improved 28.4% year over year and surpassed the Zacks Consensus Estimate of $608.3 million. A rise of 35.8% in passenger revenues on the back of upbeat air-travel demand resulted in this uptick. Notably, passenger revenues accounted for 89.5% of the top line in first-quarter 2023. Scheduled airline traffic (measured by revenue passenger miles) increased 29.2% year over year. Scheduled capacity (measured in available seat miles or ASM) increased 15.8% year over year to 4914.6 million. The passenger load factor (percentage of seats filled by passengers) increased to 78.2% compared with 70.1% reported a year ago. Passenger revenue per ASM or PRASM increased to 11.16 cents, witnessing a year-over-year uptick of 17.2%. Operating revenue per ASM (RASM) grew by 11.3% on a year-over-year basis. Average fuel cost per gallon (economic) increased 8.5% to $3.07 in the first quarter compared with the year-ago reported figure. Operating cost per ASM or CASM, excluding aircraft fuel and non-recurring items, increased 1.3% year over year to 14.85 cents at first-quarter 2023 end. Liquidity
As of Mar 31, the company had unrestricted cash, cash equivalents and short-term investments of $1.4 billion, and outstanding debt and finance lease obligations of $1.7 billion.
Unit revenue is expected to go down to 8.5-11.5% from the second-quarter 2022 figures. Capacity is anticipated to increase 10.5-13.5% from second-quarter 2022 levels.
Costs per ASM (excluding fuel & non-recurring items) are expected to be in the range of being flat to up 3% from second-quarter 2022 levels. Gallons of jet fuel consumed are expected to increase 16.5-19.5% from second-quarter 2022 level. The effective tax rate is anticipated to be around 21% during the second quarter. Fuel price per gallon is expected to be at $2.62 by the end of second-quarter 2023. Gallons of jet fuel consumed are now expected to increase 12.5-15.5% (prior view: 10.5-13.5%). Fuel price per gallon is anticipated to be $2.70 (prior view: $2.92). How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -305.42% due to these changes.
Currently, Hawaiian Holdings has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Hawaiian Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Hawaiian Holdings belongs to the Zacks Transportation - Airline industry. Another stock from the same industry, Delta Air Lines (
DAL Quick Quote DAL - Free Report) , has gained 6.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
Delta reported revenues of $12.76 billion in the last reported quarter, representing a year-over-year change of +36.5%. EPS of $0.25 for the same period compares with -$1.23 a year ago.
For the current quarter, Delta is expected to post earnings of $2.05 per share, indicating a change of +42.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
Delta has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.