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Alaska Air Group (ALK) Beats on Q2 Earnings

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Alaska Air Group, Inc. (ALK - Free Report) ) reported second-quarter 2018 earnings per share (excluding 10 cents from non-recurring items) of $1.66 per share, surpassing the Zacks Consensus Estimate of $1.63. Earnings declined on a year-over-year basis mainly due to high fuel costs.

How Was the Estimate Revision Trend?

Investors should note that the earnings estimate revisions for Alaska Air Group depicted a gloomy picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for second-quarter earnings being revised downward to the tune of 6.9% over the last 60 days

Prior to the earnings beat in the second-quarter, the company delivered positive surprises in two of the last four quarters. The average earnings beat was 6.8%.

Alaska Air Group, Inc. Price and EPS Surprise

 

Alaska Air Group, Inc. Price and EPS Surprise | Alaska Air Group, Inc. Quote

Revenues Lower Than Expected

Alaska Air Group recorded operating revenues of $2,156 million, which fell short of the Zacks Consensus Estimate of $2,174.2 million. However, revenues increased  on a year over year basis.

Key Stats: The carrier, which acquired Virgin America in December 2016, paid a dividend to 32 cents per share in the second quarter, up 7% year-over-year. The carrier exited the quarter with $1.6 billion in unrestricted cash and marketable securities. Economic fuel cost per gallon increased 34.5% to $2.30 in the second quarter of 2018.

Zacks Rank: Currently, Alaska Air Group has a Zacks Rank #5 (Strong Sell) but that could change following the company’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stock Price: The revenue miss and the year over year decline in earnings per share due to high fuel costs disappointed investors. Consequently, shares of the company were down in pre-market trading at the time of writing.

Check back later for our full write up on this Alaska Air Group earnings report later!

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