So far this earnings season, the quarterly releases show no marked improvement in any of the sectors, barring the slight uptick witnessed by a few companies. As per the recent Earnings Trends report, almost 60% of the companies have already reported their Q2 numbers. Around 1000 companies, including 116 S&P 500 members, are scheduled to release results this week and by the end of it, nearly 87% of the index members will have reported the same. Despite the low key results this quarter, growth is expected to pick up comparatively by the end of this year across some sectors.
Airline Stocks’ Earnings Performance
Airline stocks are part of the broader Transportation sector. In the second quarter, transportation stocks have posted an earnings beat of 64.3% and revenue beat of 42.9%. However, earnings and revenues have declined 12.5% and 1.1%, respectively, which is a cause of concern. Airline stocks across the board have been impacted by terror attacks and macroeconomic woes resulting in delayed, cancelled plans along with low demand. Moreover, the average ticket price has also been on a decline, which is a major drag for the top line. Earnings beat this quarter mainly came on the back of lower costs, resulting from low fuel prices. However, airline companies will need to make significant efforts to boost earnings and improve operational efficiency to avoid low margins in case fuel prices rise.
Let’s take a look at two airline stocks which are scheduled to report their Q2 numbers on Aug 4.
Bristow Group, Inc. provides helicopter services to the global energy industry in addition to production management services for oil and gas facilities in the Gulf of Mexico. The company carries a Zacks Rank #2 (Buy) and an Earnings ESP of -50%. This is because both Most Accurate estimate stands at 3 cents while the Zacks Consensus Estimate is poised at 6 cents. According to our proven 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. Thus, Bristow is not likely to beat the Zacks Consensus Estimate this quarter.
Republic Airways Holdings Inc. is the holding company of Republic Airlines and Shuttle America and operates flights across the U.S., Canada and the Caribbean. The company has a combination of Zacks Rank #3 and an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 10 cents. Although a Zacks Rank #3 increases the predictive power of ESP, we need a positive Earnings ESP to be confident of an earnings beat. Hence, our proven model doesn’t conclusively show that Republic Airways will beat the Zacks Consensus Estimate this quarter.
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Which Airline Stock Will Win in Q2 Earnings? BRS or RJETQ
So far this earnings season, the quarterly releases show no marked improvement in any of the sectors, barring the slight uptick witnessed by a few companies. As per the recent Earnings Trends report, almost 60% of the companies have already reported their Q2 numbers. Around 1000 companies, including 116 S&P 500 members, are scheduled to release results this week and by the end of it, nearly 87% of the index members will have reported the same. Despite the low key results this quarter, growth is expected to pick up comparatively by the end of this year across some sectors.
Airline Stocks’ Earnings Performance
Airline stocks are part of the broader Transportation sector. In the second quarter, transportation stocks have posted an earnings beat of 64.3% and revenue beat of 42.9%. However, earnings and revenues have declined 12.5% and 1.1%, respectively, which is a cause of concern. Airline stocks across the board have been impacted by terror attacks and macroeconomic woes resulting in delayed, cancelled plans along with low demand. Moreover, the average ticket price has also been on a decline, which is a major drag for the top line. Earnings beat this quarter mainly came on the back of lower costs, resulting from low fuel prices. However, airline companies will need to make significant efforts to boost earnings and improve operational efficiency to avoid low margins in case fuel prices rise.
Let’s take a look at two airline stocks which are scheduled to report their Q2 numbers on Aug 4.
Bristow Group, Inc. provides helicopter services to the global energy industry in addition to production management services for oil and gas facilities in the Gulf of Mexico. The company carries a Zacks Rank #2 (Buy) and an Earnings ESP of -50%. This is because both Most Accurate estimate stands at 3 cents while the Zacks Consensus Estimate is poised at 6 cents. According to our proven 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. Thus, Bristow is not likely to beat the Zacks Consensus Estimate this quarter.
BRISTOW GROUP Price and EPS Surprise
BRISTOW GROUP Price and EPS Surprise | BRISTOW GROUP Quote
Republic Airways Holdings Inc. is the holding company of Republic Airlines and Shuttle America and operates flights across the U.S., Canada and the Caribbean. The company has a combination of Zacks Rank #3 and an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 10 cents. Although a Zacks Rank #3 increases the predictive power of ESP, we need a positive Earnings ESP to be confident of an earnings beat. Hence, our proven model doesn’t conclusively show that Republic Airways will beat the Zacks Consensus Estimate this quarter.
REPUBLIC AIRWAY Price and EPS Surprise
REPUBLIC AIRWAY Price and EPS Surprise | REPUBLIC AIRWAY Quote
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