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Hawaiian Holdings (HA) Down 11.2% Since Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Hawaiian Holdings, Inc. (HA - Free Report) . Shares have lost about 11.2% in that time frame, underperforming the market.

Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Second quarter earnings

Hawaiian Holdings’ second-quarter adjusted earnings of $1.58 per share beat the Zacks Consensus Estimate of $1.53. Quarterly revenues of $675 million, however, fell short of the Zacks Consensus Estimate of $677 million. Both earnings and revenues increased on a year-over-year basis.

Operating revenue per available seat mile in the quarter climbed 9.2% year over year. The metric is projected to grow 4.5–7.5% in the third quarter of 2017. Capacity is projected to grow 0.5%–2.5%.

CASM, excluding fuel, is also projected to rise significantly for the ongoing quarter primarily due to the higher labor costs. Fuel cost per gallon (economic) is projected in the band of $1.5–$1.6 for the third quarter. The metric is expected in the band of $1.53 to $1.63 for full-year 2017.

How Have Estimates Been Moving Since Then?

Following the release and in the last month, investors have witnessed an upward trend in fresh estimates. There has been one revision higher for the current quarter.

VGM Scores

At this time, Hawaiian Holdings' stock has an average Growth Score of C, though it is lagging a lot on the momentum front with a F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Based on our scores, the stock is more suitable for value investors than those looking for growth.

Outlook

Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising.  Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.




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