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Air Transport Stocks' Earnings on Jul 29: ALGT, SAVE, UPS
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The transportation sector is highly diversified as it comprises a wide range of companies like airlines, shippers, railroads and packaging companies, to name a few. Most of the S&P 500 players in this division (one of the 16 Zacks sectors) have already reported their results for the Q2 earnings season.
As per our latest earnings trends report, the sector has seen quarterly reports from 86.7% of its S&P 500 representation, accounting for 74.3% in terms of market capitalization (as of Jul 27). Although the sector is seeing negative earnings growth (14.8%), a healthy proportion of companies (69.2%) have outshined the Zacks Consensus Estimate with respect to the bottom line. The earnings outperformance has come on the back of beats from carriers like Delta Air Lines (DAL - Free Report) , American Airlines Group (AAL - Free Report) and JetBlue Airways Corporation (JBLU - Free Report) .
However, the sector is grappling with a range of headwinds, which is the reason behind the negative earnings growth rate (12.6%) projection for this division. The entire S&P 500 index is expected to end Q2 with a earnings growth rate of -3.5% which marks an improvement from the 1Q comparable figure of - 6.5%.
Meanwhile, despite the earnings beats, most of the company’s share price remained unchanged and the Zacks Rank remained bearish, courtesy the prevailing challenges in the space. The Transportation-Airline segment’s Zacks Industry rank of 245 (out of 260+ industries) highlights this factor.
Further, the Transportation-Air Freight segment’s Zacks Industry rank of 172 throws light on the challenges facing players like United Parcel Service (UPS - Free Report) and FedEx Corporation (FDX - Free Report) .
Given this gloomy backdrop, it would be interesting to see what awaits Spirit Airlines (SAVE - Free Report) , Allegiant Travel Company (ALGT - Free Report) , the owner of Allegiant Airlines, and United Parcel Service when they report their second-quarter 2016 numbers on Jul 29.
Allegiant Travel Company focuses on linking travelers in small cities to world-class leisure destinations. According to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings surprise. Allegiant Travel has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). Please note that we caution against Sell-rated stocks going into the earnings announcement (read more: Allegiant Travel Q2 Earnings: What's in the Cards?).
Spirit Airlines is a low-cost carrier that has unbundled its services apart from offering customers the option of what they want to purchase ranging from bags, seat assignment and refreshments. Previously, the discount carrier had an Earnings ESP of +0.94 and a Zacks Rank #5. However, the earnings ESP measure has now changed to 0.00% with the Most Accurate estimate matching the Zacks Consensus Estimate of $1.07 per share. The Zacks Rank however remains unchanged. The combination makes an earnings beat unlikely for the second quarter (read more: Spirit Airlines Q2 Earnings: What's in the Cards?).
United Parcel Service is the world's largest express carrier and package delivery company. The company provides specialized transportation and logistics services in the United States and internationally. Our quantitative model hints at an earnings beat for this Atlanta-based company as it has a Zacks Rank #3 and an Earnings ESP of +1.40 (the Most Accurate estimate of $1.45 is 2 cents higher than the Zacks Consensus Estimate) (read more: United Parcel Service Q2 Earnings: A Beat in Store?).
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Air Transport Stocks' Earnings on Jul 29: ALGT, SAVE, UPS
The transportation sector is highly diversified as it comprises a wide range of companies like airlines, shippers, railroads and packaging companies, to name a few. Most of the S&P 500 players in this division (one of the 16 Zacks sectors) have already reported their results for the Q2 earnings season.
As per our latest earnings trends report, the sector has seen quarterly reports from 86.7% of its S&P 500 representation, accounting for 74.3% in terms of market capitalization (as of Jul 27). Although the sector is seeing negative earnings growth (14.8%), a healthy proportion of companies (69.2%) have outshined the Zacks Consensus Estimate with respect to the bottom line. The earnings outperformance has come on the back of beats from carriers like Delta Air Lines (DAL - Free Report) , American Airlines Group (AAL - Free Report) and JetBlue Airways Corporation (JBLU - Free Report) .
However, the sector is grappling with a range of headwinds, which is the reason behind the negative earnings growth rate (12.6%) projection for this division. The entire S&P 500 index is expected to end Q2 with a earnings growth rate of -3.5% which marks an improvement from the 1Q comparable figure of - 6.5%.
Meanwhile, despite the earnings beats, most of the company’s share price remained unchanged and the Zacks Rank remained bearish, courtesy the prevailing challenges in the space. The Transportation-Airline segment’s Zacks Industry rank of 245 (out of 260+ industries) highlights this factor.
Further, the Transportation-Air Freight segment’s Zacks Industry rank of 172 throws light on the challenges facing players like United Parcel Service (UPS - Free Report) and FedEx Corporation (FDX - Free Report) .
Given this gloomy backdrop, it would be interesting to see what awaits Spirit Airlines (SAVE - Free Report) , Allegiant Travel Company (ALGT - Free Report) , the owner of Allegiant Airlines, and United Parcel Service when they report their second-quarter 2016 numbers on Jul 29.
Allegiant Travel Company focuses on linking travelers in small cities to world-class leisure destinations. According to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings surprise. Allegiant Travel has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). Please note that we caution against Sell-rated stocks going into the earnings announcement (read more: Allegiant Travel Q2 Earnings: What's in the Cards?).
ALLEGIANT TRAVL Price and EPS Surprise
ALLEGIANT TRAVL Price and EPS Surprise | ALLEGIANT TRAVL Quote
Spirit Airlines is a low-cost carrier that has unbundled its services apart from offering customers the option of what they want to purchase ranging from bags, seat assignment and refreshments. Previously, the discount carrier had an Earnings ESP of +0.94 and a Zacks Rank #5. However, the earnings ESP measure has now changed to 0.00% with the Most Accurate estimate matching the Zacks Consensus Estimate of $1.07 per share. The Zacks Rank however remains unchanged. The combination makes an earnings beat unlikely for the second quarter (read more: Spirit Airlines Q2 Earnings: What's in the Cards?).
SPIRIT AIRLINES Price and EPS Surprise
SPIRIT AIRLINES Price and EPS Surprise | SPIRIT AIRLINES Quote
United Parcel Service is the world's largest express carrier and package delivery company. The company provides specialized transportation and logistics services in the United States and internationally. Our quantitative model hints at an earnings beat for this Atlanta-based company as it has a Zacks Rank #3 and an Earnings ESP of +1.40 (the Most Accurate estimate of $1.45 is 2 cents higher than the Zacks Consensus Estimate) (read more: United Parcel Service Q2 Earnings: A Beat in Store?).
UTD PARCEL SRVC Price and EPS Surprise
UTD PARCEL SRVC Price and EPS Surprise | UTD PARCEL SRVC Quote
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