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ALK's Q4 Earnings Coming Up: What's in the Offing for the Stock?

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Alaska Air Group (ALK - Free Report) is scheduled to report fourth-quarter 2024 results on Jan. 23, 2025 before market open.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The Zacks Consensus Estimate for ALK’s fourth-quarter 2024 earnings per share has been revised downward by 26.6% in the past 60 days to 47 cents. However, the consensus mark implies a 56.7% rise from the year-ago actuals. The Zacks Consensus Estimate for ALK’s fourth-quarter 2024 revenues is pegged at $3.51 billion, indicating 37.6% growth year over year.

Alaska Air Group, Inc. Price and EPS Surprise

Alaska Air Group, Inc. Price and EPS Surprise

Alaska Air Group, Inc. price-eps-surprise | Alaska Air Group, Inc. Quote

ALK has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 23.2%.

Let’s see how things have shaped up for ALK this earnings season.

Factors Likely to Have Influenced ALK’s Q4 Performance

The top-line performance in the fourth quarter is expected to have benefited from expanded global connectivity. This is likely to have resulted in high passenger volumes. A dedicated loyalty program and cargo growth are also expected to have enhanced overall sales.

Due to upbeat air-travel demand and favorable pricing, the company aims to expand its capacity to meet the anticipated high demand. To match the upbeat demand, available seat miles (a measure of capacity) are expected to increase in the range of 1.5-2.5% in the fourth quarter of 2024 from the fourth-quarter 2023 actuals.

Driven by upbeat air-travel demand, ALK issued bullish earnings per share (EPS) guidance for the fourth quarter of 2024. ALK expects fourth-quarter EPS between 20 cents and 40 cents. Low fuel costs are also expected to have boosted the bottom-line performance. Economic fuel price per gallon is expected in the $2.55-$2.65 per gallon range in the fourth quarter of 2024.

What Our Model Says About ALK

Our proven model does not conclusively predict an earnings beat for ALK this time. 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. However, that’s not the case here.

ALK has an Earnings ESP of -1.57% and a Zacks Rank #1 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors might want to consider, as our model shows that these have the right combination of elements to beat fourth-quarter 2024 earnings.

American Airlines (AAL - Free Report) has an Earnings ESP of +3.99% and sports a Zacks Rank #1 at present. AAL is set to release fourth-quarter 2024 results on Jan. 23, 2025.You can see the complete list of today’s Zacks #1 Rank stocks here.

AAL has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate thrice in the preceding four quarters and missing once. The average miss is 124.4%.

JetBlue Airways (JBLU - Free Report) has an Earnings ESP of +7.73% and a Zacks Rank #3 at present. JBLU is slated to release fourth-quarter 2024 results on Jan. 28, 2025. 

JBLU has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters. The average beat is 62.8%.


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