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AZUL Gears Up to Report Q3 Earnings: Here's What to Expect
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Azul (AZUL - Free Report) is scheduled to report third-quarter 2023 financial numbers on Nov 14.
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 94.13%, on average.
The Zacks Consensus Estimate for third-quarter 2023 is currently pegged at a loss of 38 cents per share. This has widened in the past 60 days from a loss of 36 cents.
Against this backdrop, let’s discuss the factors likely to be 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 September quarter owing to upbeat domestic and international air-travel demand. The Zacks Consensus Estimate for revenues is currently pegged at $995.49 million, implying a rise of 19.14% from third-quarter 2022’s actuals.
On the flip side, quarterly cargo revenues are likely to have decreased 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 105.22%, with the Most Accurate Estimate and the Zacks Consensus Estimate being currently pegged at earnings of 2 cents per share and a loss of 38 cents, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Azul incurred a loss (excluding $1.52 from non-recurring items) of 81 cents per share in the second quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 70 cents. Loss per share was 94 cents in second-quarter 2022. Total revenues amounted to R$4,269.4 million ($862.7 million).
Q3 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services' (JBHT - Free Report) third-quarter 2023 EPS of $1.80 missed the Zacks Consensus Estimate of $1.85 and declined 30% year over year.
JBHT’s total operating revenues of $3,163.8 million also lagged the Zacks Consensus Estimate of $3,224 million and fell 18% year over year. Total operating revenues, excluding fuel surcharges, decreased 15% year over year.
Delta Air Lines (DAL - Free Report) reported third-quarter 2023 EPS (excluding 31 cents from non-recurring items) of $2.03, which comfortably beat the Zacks Consensus Estimate of $1.92 and improved 35% on a year-over-year basis.
DAL’s revenues of $15,488 million outpaced the Zacks Consensus Estimate of $15,290.4 million. The top line jumped 11% on a year-over-year basis, driven by higher air-travel demand.
Alaska Air Group (ALK - Free Report) reported third-quarter 2023 EPS of $1.83, which missed the Zacks Consensus Estimate of $1.88 and declined 28% year over year.
Operating revenues of $2,839 million fell short of the Zacks Consensus Estimate of $2,876.1 million. The top line inched up 0.4% year over year, with passenger revenues accounting for 92.2% of the top line and increasing 0.1%.
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AZUL Gears Up to Report Q3 Earnings: Here's What to Expect
Azul (AZUL - Free Report) is scheduled to report third-quarter 2023 financial numbers on Nov 14.
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 94.13%, on average.
AZUL Price and EPS Surprise
AZUL price-eps-surprise | AZUL Quote
The Zacks Consensus Estimate for third-quarter 2023 is currently pegged at a loss of 38 cents per share. This has widened in the past 60 days from a loss of 36 cents.
Against this backdrop, let’s discuss the factors likely to be 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 September quarter owing to upbeat domestic and international air-travel demand. The Zacks Consensus Estimate for revenues is currently pegged at $995.49 million, implying a rise of 19.14% from third-quarter 2022’s actuals.
On the flip side, quarterly cargo revenues are likely to have decreased 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 105.22%, with the Most Accurate Estimate and the Zacks Consensus Estimate being currently pegged at earnings of 2 cents per share and a loss of 38 cents, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Azul carries a Zacks Rank #4 (Sell) currently.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Highlights of Q2
Azul incurred a loss (excluding $1.52 from non-recurring items) of 81 cents per share in the second quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 70 cents. Loss per share was 94 cents in second-quarter 2022. Total revenues amounted to R$4,269.4 million ($862.7 million).
Q3 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services' (JBHT - Free Report) third-quarter 2023 EPS of $1.80 missed the Zacks Consensus Estimate of $1.85 and declined 30% year over year.
JBHT’s total operating revenues of $3,163.8 million also lagged the Zacks Consensus Estimate of $3,224 million and fell 18% year over year. Total operating revenues, excluding fuel surcharges, decreased 15% year over year.
Delta Air Lines (DAL - Free Report) reported third-quarter 2023 EPS (excluding 31 cents from non-recurring items) of $2.03, which comfortably beat the Zacks Consensus Estimate of $1.92 and improved 35% on a year-over-year basis.
DAL’s revenues of $15,488 million outpaced the Zacks Consensus Estimate of $15,290.4 million. The top line jumped 11% on a year-over-year basis, driven by higher air-travel demand.
Alaska Air Group (ALK - Free Report) reported third-quarter 2023 EPS of $1.83, which missed the Zacks Consensus Estimate of $1.88 and declined 28% year over year.
Operating revenues of $2,839 million fell short of the Zacks Consensus Estimate of $2,876.1 million. The top line inched up 0.4% year over year, with passenger revenues accounting for 92.2% of the top line and increasing 0.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.