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The company has surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once. The average miss is 2.27%. The Zacks Consensus Estimate for the company’s second-quarter earnings has been revised 40.8% upward over the past 90 days.
Let’s see how things have shaped up for Alaska Air this earnings season.
Q2 Expectations
The Zacks Consensus Estimate for Alaska Air’s second-quarter 2023 revenues is pegged at $2.78 billion, indicating 4.57% growth year over year. The top line is likely to have been aided bycontinued recovery in air-travel demand.
On the back of upbeat air-travel demand and favorable pricing, the company expects to boost its fleet and workforce to meet the anticipated high demand. ALK expects second-quarter 2023 total revenues to increase 2.5-5.5% from the second quarter of 2022 actuals. To match the upbeat demand, capacity in the June quarter is expected to expand 6-9%. Our estimate indicates an increase of 8.8% year over year.
However, expenses related to fuel prices are likely to have weighed on ALK’s bottom-line growth. The second-quarter economic fuel cost per gallon is projected in the $2.95-$3.15 range. Our estimate is pegged at $3.02 per gallon.
Cost per available seat mile, excluding fuel and special items, is expected to grow 1-3% year over year. Our estimate indicates an increase of 2.9% year over year. High labor costs are likely to have led to an uptick in the metric.
What Our Model Says
Our proven model predicts an earnings beat for Alaska Air 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 an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Alaska Air has an Earnings ESP of +0.72% and a Zacks Rank #3.
Alaska Air reported first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.
Operating revenues of $ 2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year.
Other Stocks to Consider
Here are a few stocks from the Zacks Airline industry that investors may consider, as our model shows that these have the right combination of elements to beat their second-quarter 2023 earnings:
Copa Holdings has an expected earnings growth rate of more than 100% for second-quarter 2023. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average.
The Zacks Consensus Estimate for CPA’s second-quarter 2023 earnings has been revised upward by 94% in the past 90 days.
American Airlines (AAL - Free Report) has an Earnings ESP of +0.53% and a Zacks Rank #3. AAL will release results on Jul 20.
American Airlines has an expected earnings growth rate of more than 100% for second-quarter 2023. AAL delivered a trailing four-quarter earnings surprise of 12.90%, on average.
The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings has been revised upward by 50.9% in the past 90 days.
United Airlines (UAL - Free Report) has an Earnings ESP of +4.87% and a Zacks Rank #3. UAL will release results on Jul 19.
UAL has an expected earnings growth rate of more than 100% for second-quarter 2023. UAL delivered a trailing four-quarter earnings surprise of 9.14%, on average.
The Zacks Consensus Estimate for UAL’s second-quarter 2023 earnings has been revised upward by 14.3% in the past 90 days.
Image: Bigstock
Is a Beat in Store for Alaska Air (ALK) in Q2 Earnings?
Alaska Air Group, Inc. (ALK - Free Report) is scheduled to report second-quarter 2023 results on Jul 25, before market open.
The company has surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once. The average miss is 2.27%. The Zacks Consensus Estimate for the company’s second-quarter earnings has been revised 40.8% upward over the past 90 days.
Let’s see how things have shaped up for Alaska Air this earnings season.
Q2 Expectations
The Zacks Consensus Estimate for Alaska Air’s second-quarter 2023 revenues is pegged at $2.78 billion, indicating 4.57% growth year over year. The top line is likely to have been aided bycontinued recovery in air-travel demand.
On the back of upbeat air-travel demand and favorable pricing, the company expects to boost its fleet and workforce to meet the anticipated high demand. ALK expects second-quarter 2023 total revenues to increase 2.5-5.5% from the second quarter of 2022 actuals. To match the upbeat demand, capacity in the June quarter is expected to expand 6-9%. Our estimate indicates an increase of 8.8% year over year.
However, expenses related to fuel prices are likely to have weighed on ALK’s bottom-line growth. The second-quarter economic fuel cost per gallon is projected in the $2.95-$3.15 range. Our estimate is pegged at $3.02 per gallon.
Cost per available seat mile, excluding fuel and special items, is expected to grow 1-3% year over year. Our estimate indicates an increase of 2.9% year over year. High labor costs are likely to have led to an uptick in the metric.
What Our Model Says
Our proven model predicts an earnings beat for Alaska Air 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 an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Alaska Air has an Earnings ESP of +0.72% and a Zacks Rank #3.
Alaska Air Group, Inc. Price and EPS Surprise
Alaska Air Group, Inc. price-eps-surprise | Alaska Air Group, Inc. Quote
Highlights of Q1
Alaska Air reported first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.
Operating revenues of $ 2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year.
Other Stocks to Consider
Here are a few stocks from the Zacks Airline industry that investors may consider, as our model shows that these have the right combination of elements to beat their second-quarter 2023 earnings:
Copa Holdings, S.A. (CPA - Free Report) has an Earnings ESP of +0.82% and a Zacks Rank #2. CPA will release results on Aug 9. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of more than 100% for second-quarter 2023. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average.
The Zacks Consensus Estimate for CPA’s second-quarter 2023 earnings has been revised upward by 94% in the past 90 days.
American Airlines (AAL - Free Report) has an Earnings ESP of +0.53% and a Zacks Rank #3. AAL will release results on Jul 20.
American Airlines has an expected earnings growth rate of more than 100% for second-quarter 2023. AAL delivered a trailing four-quarter earnings surprise of 12.90%, on average.
The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings has been revised upward by 50.9% in the past 90 days.
United Airlines (UAL - Free Report) has an Earnings ESP of +4.87% and a Zacks Rank #3. UAL will release results on Jul 19.
UAL has an expected earnings growth rate of more than 100% for second-quarter 2023. UAL delivered a trailing four-quarter earnings surprise of 9.14%, on average.
The Zacks Consensus Estimate for UAL’s second-quarter 2023 earnings has been revised upward by 14.3% in the past 90 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.