We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Cards for Air Canada (ACDVF) in Q2 Earnings?
Read MoreHide Full Article
Air Canada (ACDVF - Free Report) is scheduled to report second-quarter 2023 results on Aug 11, before market open.
The company has a disappointing earnings surprise history, having missed the Zacks Consensus Estimate in three of the preceding four quarters (beating once). The average miss is 241.51%. The Zacks Consensus Estimate for second-quarter earnings has been revised 2.7% upward over the past 60 days.
Given this backdrop, let's delve deeper into the factors likely to have influenced ACDVF’s second-quarter 2023 performance.
We expect upbeat air-travel demand to have boosted Air Canada’s top-line performance in the to-be-reported quarter. High passenger revenues are likely to have aided the results. Driven by upbeat traffic, load factor (percentage of seats filled by passengers) is likely to have been impressive in the June quarter.
However, high fuel cost might have affected the bottom-line performance in the quarter under review. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level. Non-fuel unit costs are likely have been high in the quarter under discussion due to increased labor costs.
What Our Model Says
Our proven model does not predict an earnings beat for ACDVF 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, which is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Air Canada has an Earnings ESP of 0.00% (the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 38 cents per share) and presently sports a Zacks Rank #1.
A Sneak Peek Into Other Notable Airlines’ Results
American Airlines’ (AAL - Free Report) second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues. Operating revenues of $14,055 million rose 4.7% year over year. The top line beat the Zacks Consensus Estimate of $13,736.3 million.
Passenger revenues, accounting for 92.3% of the top line, increased to $12,978 million from $12,223 million a year ago. This was driven by strong air-travel demand, mainly on the domestic front. Demand was particularly strong in June on the back of growth in close-in bookings. AAL currently carries a Zacks Rank #2. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Airlines (UAL - Free Report) , currently sporting a Zacks Rank #1, reported second-quarter 2023 earnings per share of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues climbed 17.1% year over year due to upbeat air-travel demand. The uptick was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
Image: Bigstock
What's in the Cards for Air Canada (ACDVF) in Q2 Earnings?
Air Canada (ACDVF - Free Report) is scheduled to report second-quarter 2023 results on Aug 11, before market open.
The company has a disappointing earnings surprise history, having missed the Zacks Consensus Estimate in three of the preceding four quarters (beating once). The average miss is 241.51%. The Zacks Consensus Estimate for second-quarter earnings has been revised 2.7% upward over the past 60 days.
Given this backdrop, let's delve deeper into the factors likely to have influenced ACDVF’s second-quarter 2023 performance.
We expect upbeat air-travel demand to have boosted Air Canada’s top-line performance in the to-be-reported quarter. High passenger revenues are likely to have aided the results. Driven by upbeat traffic, load factor (percentage of seats filled by passengers) is likely to have been impressive in the June quarter.
However, high fuel cost might have affected the bottom-line performance in the quarter under review. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level. Non-fuel unit costs are likely have been high in the quarter under discussion due to increased labor costs.
What Our Model Says
Our proven model does not predict an earnings beat for ACDVF 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, which is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Air Canada has an Earnings ESP of 0.00% (the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 38 cents per share) and presently sports a Zacks Rank #1.
A Sneak Peek Into Other Notable Airlines’ Results
American Airlines’ (AAL - Free Report) second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues. Operating revenues of $14,055 million rose 4.7% year over year. The top line beat the Zacks Consensus Estimate of $13,736.3 million.
Passenger revenues, accounting for 92.3% of the top line, increased to $12,978 million from $12,223 million a year ago. This was driven by strong air-travel demand, mainly on the domestic front. Demand was particularly strong in June on the back of growth in close-in bookings. AAL currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Airlines (UAL - Free Report) , currently sporting a Zacks Rank #1, reported second-quarter 2023 earnings per share of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year.
Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues climbed 17.1% year over year due to upbeat air-travel demand. The uptick was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar