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JBLU has a disappointing earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average miss being 1.41%.
Let’s take a look at the factors likely to have influenced JBLU’s performance in the quarter under review.
JetBlue Airways Corporation Price and EPS Surprise
We expect passenger revenues to fall 5.7% from fourth-quarter 2022 actuals. Total revenues are now suggested to decrease in the range of 4-7% (prior view: decline in the range of 6.5-10.5%).
Fuel expenses are likely to have affected the bottom line. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level. Average fuel cost per gallon in the December quarter is estimated to be between $3.05 and $3.15. Our projection for the metric is pegged at $3.09, indicating a sequential rise from $2.94.
Management now forecasts loss per share in the band of 25-35 cents. The previously provided guidance was loss per share in the 35-55 cents range. The Zacks Consensus Estimate is pegged at a loss of 30 cents per share.
Available seat miles (ASMs or capacity) for the fourth quarter of 2023 are now anticipated to increase in the 2-3% band (prior view: 0.5-3.5%) to cater to increased air-travel demand.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for JBLU 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 absolutely not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
JBLU has an Earnings ESP of -3.91% and a Zacks Rank #3.
Highlights of Q3
JetBlue's third-quarter 2023 loss (excluding 7 cents from non-recurring items) of 39 cents per share was wider than the Zacks Consensus Estimate of a loss of 27 cents. In the year-ago quarter, JBLU reported earnings of 21 cents per share. Headwinds like weather-related constraints and high fuel prices hurt results.
Operating revenues of $2,353 million missed the Zacks Consensus Estimate of $2,379 million. Moreover, the top line decreased 8.16% year over year.
Other Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on their fourth-quarter 2023 earnings.
American Airlines Group Inc. (AAL - Free Report) has an Earnings ESP of +43.10% and a Zacks Rank #2. AAL will release results on Jan 25.
The Zacks Consensus Estimate for AAL’s fourth-quarter 2023 earnings has been revised upward by more than 100% in the past 90 days. AAL delivered a trailing four-quarter earnings surprise of 23.83%, on average.
The Zacks Consensus Estimate for CPA’s fourth-quarter 2023 earnings has been revised upward by 5.1% in the past 90 days. CPA delivered a trailing four-quarter earnings surprise of 16.81%, on average.
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , has an Earnings ESP of +0.85% and a Zacks Rank #2. WAB will release results on Feb 14.
WAB has an expected earnings growth rate of 20.77% for fourth-quarter 2023. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average. The Zacks Consensus Estimate for WAB’s fourth-quarter 2023 earnings has improved 3.3% over the past 90 days.
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What's in the Offing for JetBlue (JBLU) in Q4 Earnings?
JetBlue Airways Corporation (JBLU - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 30, before market open.
JBLU has a disappointing earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average miss being 1.41%.
Let’s take a look at the factors likely to have influenced JBLU’s performance in the quarter under review.
JetBlue Airways Corporation Price and EPS Surprise
JetBlue Airways Corporation price-eps-surprise | JetBlue Airways Corporation Quote
We expect passenger revenues to fall 5.7% from fourth-quarter 2022 actuals. Total revenues are now suggested to decrease in the range of 4-7% (prior view: decline in the range of 6.5-10.5%).
Fuel expenses are likely to have affected the bottom line. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level. Average fuel cost per gallon in the December quarter is estimated to be between $3.05 and $3.15. Our projection for the metric is pegged at $3.09, indicating a sequential rise from $2.94.
Management now forecasts loss per share in the band of 25-35 cents. The previously provided guidance was loss per share in the 35-55 cents range. The Zacks Consensus Estimate is pegged at a loss of 30 cents per share.
Available seat miles (ASMs or capacity) for the fourth quarter of 2023 are now anticipated to increase in the 2-3% band (prior view: 0.5-3.5%) to cater to increased air-travel demand.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for JBLU 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 absolutely not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
JBLU has an Earnings ESP of -3.91% and a Zacks Rank #3.
Highlights of Q3
JetBlue's third-quarter 2023 loss (excluding 7 cents from non-recurring items) of 39 cents per share was wider than the Zacks Consensus Estimate of a loss of 27 cents. In the year-ago quarter, JBLU reported earnings of 21 cents per share. Headwinds like weather-related constraints and high fuel prices hurt results.
Operating revenues of $2,353 million missed the Zacks Consensus Estimate of $2,379 million. Moreover, the top line decreased 8.16% year over year.
Other Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on their fourth-quarter 2023 earnings.
American Airlines Group Inc. (AAL - Free Report) has an Earnings ESP of +43.10% and a Zacks Rank #2. AAL will release results on Jan 25.
The Zacks Consensus Estimate for AAL’s fourth-quarter 2023 earnings has been revised upward by more than 100% in the past 90 days. AAL delivered a trailing four-quarter earnings surprise of 23.83%, on average.
Copa Holdings, S.A. (CPA - Free Report) has an Earnings ESP of +1.47% and sports a Zacks Rank #1. CPA will release results on Feb 7. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CPA’s fourth-quarter 2023 earnings has been revised upward by 5.1% in the past 90 days. CPA delivered a trailing four-quarter earnings surprise of 16.81%, on average.
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , has an Earnings ESP of +0.85% and a Zacks Rank #2. WAB will release results on Feb 14.
WAB has an expected earnings growth rate of 20.77% for fourth-quarter 2023. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average. The Zacks Consensus Estimate for WAB’s fourth-quarter 2023 earnings has improved 3.3% over the past 90 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.