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Azul has a dismal earnings record. The carrier’s bottom line missed the Zacks Consensus Estimate in each of the last four quarters, the negative surprise being 96.5%, on average.
The Zacks Consensus Estimate is currently pegged at a loss of 70 cents per share. The loss has widened in the past 60 days from a loss of 59 cents.
Against this backdrop, let’s discuss the factors 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 June quarter owing to rising domestic and international air-travel demand. The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is currently pegged at $908.3 million, implying a rise of 13.5% year over year.
On the flip side, cargo revenues are likely to have decreased in the quarter under review due to a reduction in international cargo capacity.
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 -6.64%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Azul incurred a loss (excluding 55 cents from non-recurring items) of 99 cents per share in the first quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 42 cents. Loss per share was $1.14 in the first quarter of 2022.
Total revenues of $862.1 million missed the Zacks Consensus Estimate of $930.9 million but increased 41.1% year over year due to improved air-travel demand.
Q2 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services’ (JBHT - Free Report) second-quarter 2023 earnings of $1.81 per share missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year. Total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million. The top line tumbled 18.4% year over year.
The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal and 21% in Truckload. A 4% decrease in productivity in Dedicated Capacity Solutions added to the woes. Changes in customer rate, freight mix and lower fuel surcharge revenues resulted in this downtick.
Delta Air Lines’ (DAL - Free Report) second-quarter 2023 earnings (excluding 16 cents from non-recurring items) of $2.68 per share comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported earnings of $1.44 a year ago.
Revenues of $15,578 million outshined the Zacks Consensus Estimate of $14,991.6 million. Total revenues climbed 12.69% on a year-over-year basis driven by higher air-travel demand. Adjusted operating margin was 17.1% compared with 11.7% in the prior-year period.
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AZUL Gears Up to Report Q2 Earnings: Here's What to Expect
Azul S.A. (AZUL - Free Report) is scheduled to report second-quarter 2023 financial numbers on Aug 10.
Azul has a dismal earnings record. The carrier’s bottom line missed the Zacks Consensus Estimate in each of the last four quarters, the negative surprise being 96.5%, on average.
The Zacks Consensus Estimate is currently pegged at a loss of 70 cents per share. The loss has widened in the past 60 days from a loss of 59 cents.
Against this backdrop, let’s discuss the factors likely to get reflected in the upcoming quarterly results.
AZUL Price and EPS Surprise
AZUL price-eps-surprise | AZUL Quote
Passenger revenues (which account for the bulk of the company’s top line) are expected to have surged in the June quarter owing to rising domestic and international air-travel demand. The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is currently pegged at $908.3 million, implying a rise of 13.5% year over year.
On the flip side, cargo revenues are likely to have decreased in the quarter under review due to a reduction in international cargo capacity.
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 -6.64%. 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 Q1
Azul incurred a loss (excluding 55 cents from non-recurring items) of 99 cents per share in the first quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 42 cents. Loss per share was $1.14 in the first quarter of 2022.
Total revenues of $862.1 million missed the Zacks Consensus Estimate of $930.9 million but increased 41.1% year over year due to improved air-travel demand.
Q2 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services’ (JBHT - Free Report) second-quarter 2023 earnings of $1.81 per share missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year. Total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million. The top line tumbled 18.4% year over year.
The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal and 21% in Truckload. A 4% decrease in productivity in Dedicated Capacity Solutions added to the woes. Changes in customer rate, freight mix and lower fuel surcharge revenues resulted in this downtick.
Delta Air Lines’ (DAL - Free Report) second-quarter 2023 earnings (excluding 16 cents from non-recurring items) of $2.68 per share comfortably beat the Zacks Consensus Estimate of $2.42. DAL reported earnings of $1.44 a year ago.
Revenues of $15,578 million outshined the Zacks Consensus Estimate of $14,991.6 million. Total revenues climbed 12.69% on a year-over-year basis driven by higher air-travel demand. Adjusted operating margin was 17.1% compared with 11.7% in the prior-year period.