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Transport Stocks' Q2 Earnings Lineup for Aug 3: CPA, AAWW
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As per our latest Earnings trends report, 317 companies in the S&P 500 space (representing 73.5% in terms of market capitalization) have reported earnings as of Jul 29. The report further states that even though year-over-year earnings growth is in the negative territory (3.3%), the releases so far represent an improvement over the 1Q16 performance. In 1Q16, earnings growth for the same 317 members was -7.3%. The top line also highlights an improvement in 2Q16 from the 1Q16 levels.
Growth for the top- and bottom-line in the S&P 500 space is projected at -0.4% and -3.4%, respectively, for Q2 earnings. Meanwhile, the comparable figures observed at the end of 1Q16 stood at -0.9% and -6.5%, respectively.
According to the report, eight of the 16 Zacks sectors are expected to end Q2 with negative earnings growth. One of these sectors is the widely diversified transportation space, which is likely to witness an earnings deceleration of 12.5%. Further, the top line is projected to shrink 1.3%, thanks to multiple headwinds like terror attacks, declining coal shipments, driver shortage and uncertainty following the Brexit vote.
Most of the subgroups in the transportation sector have bearish Zacks Industry ranks in the wake of the above headwinds. For example, the Transportation-Airline segment has a Zacks Industry rank of 247 (out of 260+ industries) while the Transportation-Air Freight segment’s Zacks Industry rank is 167.
Although most of the transportation stocks have already reported their numbers, some like Copa Holdings SA (CPA - Free Report) and Atlas Air WorldwideHoldings, Inc. are slated to release their second-quarter figures on Aug 3. Let’s take a look at how the companies are placed ahead of their quarterly releases.
Copa Holdings, through its subsidiaries, provides airline passenger and cargo services in Latin America. According to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESPand a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings surprise. However, the carrier is unlikely to beat the Zacks Consensus Estimate for earnings as lacks the favorable combination (read more: Copa Holdings Q2 Earnings: Disappointment in Store?).
Atlas Air Worldwide focuses on the airport-to-airport air transportation of heavy freight cargo through its subsidiaries. The company has a Zacks Rank #4 (Sell) apart from an Earnings ESP of -2.06% (Most Accurate estimate is 2 cents below the Zacks Consensus Estimate of 97 cents). The unfavorable combination makes an earnings beat unlikely for the company.
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Transport Stocks' Q2 Earnings Lineup for Aug 3: CPA, AAWW
As per our latest Earnings trends report, 317 companies in the S&P 500 space (representing 73.5% in terms of market capitalization) have reported earnings as of Jul 29. The report further states that even though year-over-year earnings growth is in the negative territory (3.3%), the releases so far represent an improvement over the 1Q16 performance. In 1Q16, earnings growth for the same 317 members was -7.3%. The top line also highlights an improvement in 2Q16 from the 1Q16 levels.
Growth for the top- and bottom-line in the S&P 500 space is projected at -0.4% and -3.4%, respectively, for Q2 earnings. Meanwhile, the comparable figures observed at the end of 1Q16 stood at -0.9% and -6.5%, respectively.
According to the report, eight of the 16 Zacks sectors are expected to end Q2 with negative earnings growth. One of these sectors is the widely diversified transportation space, which is likely to witness an earnings deceleration of 12.5%. Further, the top line is projected to shrink 1.3%, thanks to multiple headwinds like terror attacks, declining coal shipments, driver shortage and uncertainty following the Brexit vote.
Most of the subgroups in the transportation sector have bearish Zacks Industry ranks in the wake of the above headwinds. For example, the Transportation-Airline segment has a Zacks Industry rank of 247 (out of 260+ industries) while the Transportation-Air Freight segment’s Zacks Industry rank is 167.
Although most of the transportation stocks have already reported their numbers, some like Copa Holdings SA (CPA - Free Report) and Atlas Air WorldwideHoldings, Inc. are slated to release their second-quarter figures on Aug 3. Let’s take a look at how the companies are placed ahead of their quarterly releases.
Copa Holdings, through its subsidiaries, provides airline passenger and cargo services in Latin America. According to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESPand a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings surprise. However, the carrier is unlikely to beat the Zacks Consensus Estimate for earnings as lacks the favorable combination (read more: Copa Holdings Q2 Earnings: Disappointment in Store?).
COPA HLDGS SA-A Price and EPS Surprise
COPA HLDGS SA-A Price and EPS Surprise | COPA HLDGS SA-A Quote
Atlas Air Worldwide focuses on the airport-to-airport air transportation of heavy freight cargo through its subsidiaries. The company has a Zacks Rank #4 (Sell) apart from an Earnings ESP of -2.06% (Most Accurate estimate is 2 cents below the Zacks Consensus Estimate of 97 cents). The unfavorable combination makes an earnings beat unlikely for the company.
ATLAS AIR WORLD Price and EPS Surprise
ATLAS AIR WORLD Price and EPS Surprise | ATLAS AIR WORLD Quote
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>