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The Zacks Consensus Estimate for CPA’s second-quarter 2023 earnings has been revised 17.3% upward to $3.25 per share in the past 60 days. Moreover, the company has an impressive earnings surprise history, having surpassed the consensus estimate in each of the preceding four quarters, the average beat being 14.6%.
Given this backdrop, lets unearth the factors likely to have influenced CPA’s performance in the quarter under review.
We expect upbeat air-travel demand, particularly on the domestic front, to have boosted CPA’ s top-line performance in the to-be-reported quarter. Passenger revenues, which account for the bulk of the top line, are likely to have been high, in turn, boosting total revenues. Our estimate for passenger revenues is pegged at $739.3 million, indicating a 12.5% rise year over year.
Riding on the buoyant air-travel demand, traffic (measured in revenue passenger miles) is likely to increase 12.4% year over year, per our estimate. To meet the increased demand, CPA is increasing capacity. We expect capacity (measured in available seat miles) to grow 12.8% from second-quarter 2022 actuals.
However, high fuel cost might have affected the bottom-line performance in the quarter under discussion. Our estimate is pegged at $2.85 per share. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level.
What Our Model Says
Our proven model predicts an earnings beat for Copa Holdings 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, as is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CPA currently has an Earnings ESP of +0.82% (the Most Accurate Estimate is currently pegged at $3.28, 3 cents above the Zacks Consensus Estimate) and a Zacks Rank #3.
Highlights of Q1
Copa Holdings’ first-quarter 2023 earnings (excluding 92 cents from non-recurring items) of $3.99 per share surpassed the Zacks Consensus Estimate of $3.34 and surged more than 100% year over year. Revenues of $867.3 million beat the Zacks Consensus Estimate of $839.1 million and improved 51.7% year over year on the back of passenger revenues.
Other Stocks to Consider
Here are a few other stocks from the broader Zacks Transportation sector that investors may consider as well since our model shows that these too have the right combination of elements to beat on earnings this season.
Sun County Airlines (SNCY - Free Report) has an Earnings ESP of +3.28% and sports a Zacks Rank #1 presently. SNCY will release second-quarter 2023 results on Aug 3. Upbeat passenger volumes are likely to have aided this low-cost carrier’s performance. You can see the complete list of today’s Zacks #1 Rank stocks here.
SNCY has an expected earnings growth rate in excess of 100% for the current year. It outshined the Zacks Consensus Estimate in three of the past four quarters while missing once. The average beat was 1.14%.
Air Transport Services (ATSG - Free Report) currently has an Earnings ESP of +4.11% and carries a Zacks Rank #3. ATSG is slated to release second-quarter 2023 numbers on Aug 3.
We are impressed by ATSG’s efforts to modernize its fleet. The company has a modest earnings surprise history, having outpaced the Zacks Consensus Estimate in two of the preceding four quarters and missing twice.
Image: Bigstock
Is a Beat in Store for Copa Holdings (CPA) in Q2 Earnings?
Copa Holdings (CPA - Free Report) is scheduled to report second-quarter 2023 results on Aug 9, after market close.
The Zacks Consensus Estimate for CPA’s second-quarter 2023 earnings has been revised 17.3% upward to $3.25 per share in the past 60 days. Moreover, the company has an impressive earnings surprise history, having surpassed the consensus estimate in each of the preceding four quarters, the average beat being 14.6%.
Copa Holdings, S.A. Price and EPS Surprise
Copa Holdings, S.A. price-eps-surprise | Copa Holdings, S.A. Quote
Given this backdrop, lets unearth the factors likely to have influenced CPA’s performance in the quarter under review.
We expect upbeat air-travel demand, particularly on the domestic front, to have boosted CPA’ s top-line performance in the to-be-reported quarter. Passenger revenues, which account for the bulk of the top line, are likely to have been high, in turn, boosting total revenues. Our estimate for passenger revenues is pegged at $739.3 million, indicating a 12.5% rise year over year.
Riding on the buoyant air-travel demand, traffic (measured in revenue passenger miles) is likely to increase 12.4% year over year, per our estimate. To meet the increased demand, CPA is increasing capacity. We expect capacity (measured in available seat miles) to grow 12.8% from second-quarter 2022 actuals.
However, high fuel cost might have affected the bottom-line performance in the quarter under discussion. Our estimate is pegged at $2.85 per share. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level.
What Our Model Says
Our proven model predicts an earnings beat for Copa Holdings 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, as is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CPA currently has an Earnings ESP of +0.82% (the Most Accurate Estimate is currently pegged at $3.28, 3 cents above the Zacks Consensus Estimate) and a Zacks Rank #3.
Highlights of Q1
Copa Holdings’ first-quarter 2023 earnings (excluding 92 cents from non-recurring items) of $3.99 per share surpassed the Zacks Consensus Estimate of $3.34 and surged more than 100% year over year. Revenues of $867.3 million beat the Zacks Consensus Estimate of $839.1 million and improved 51.7% year over year on the back of passenger revenues.
Other Stocks to Consider
Here are a few other stocks from the broader Zacks Transportation sector that investors may consider as well since our model shows that these too have the right combination of elements to beat on earnings this season.
Sun County Airlines (SNCY - Free Report) has an Earnings ESP of +3.28% and sports a Zacks Rank #1 presently. SNCY will release second-quarter 2023 results on Aug 3. Upbeat passenger volumes are likely to have aided this low-cost carrier’s performance. You can see the complete list of today’s Zacks #1 Rank stocks here.
SNCY has an expected earnings growth rate in excess of 100% for the current year. It outshined the Zacks Consensus Estimate in three of the past four quarters while missing once. The average beat was 1.14%.
Air Transport Services (ATSG - Free Report) currently has an Earnings ESP of +4.11% and carries a Zacks Rank #3. ATSG is slated to release second-quarter 2023 numbers on Aug 3.
We are impressed by ATSG’s efforts to modernize its fleet. The company has a modest earnings surprise history, having outpaced the Zacks Consensus Estimate in two of the preceding four quarters and missing twice.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.