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American Airlines (AAL) Beats Q3 Earnings

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American Airlines Group (AAL - Free Report) reported third-quarter 2018 adjusted earnings per share of $1.13, edging past the Zacks Consensus Estimate of $1.12. Earnings decreased on a year-over-year basis.

How Was the Estimate Revision Trend?

Investors should note that the earnings estimate revisions for American Airlines depicted a gloomy picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for third-quarter earnings being revised 6.7% downward over the last 30 days.

However, the carrier has an impressive earnings surprise history having delivered positive surprises in each of the past four quarters. The average earnings beat was 2.3%.


Revenues Better Than Expected

American Airlines recorded revenues of $11,559 million, which beat of the Zacks Consensus Estimate of $11,551.6 million. Also, revenues increased year over year.

Key Statistics: Operating cost per available seat mile excluding fuel and special items increased 0.8% on a year over year basis. Total revenue per available seat miles (TRASM) improved 2.6% in the reported quarter. Yield improved 2.2%. During the quarter, the company returned $46 million to shareholders through dividends.  

TRASM is expected to increase in the band of 1.5-3.5% in the fourth quarter of 2018. Pre-tax margin excluding special items is projected in the range of 4.5-6.5% in the quarter.

Adjusted earnings per share in 2018 are still expected between $4.50 and $5. The Zacks Consensus Estimate for 2018 earnings is currently pegged at $4.23 per share.

Zacks Rank: Currently, American Airlines carries a Zacks Rank #5 (Strong Sell) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on this American Airlines earnings report later!

Stock Movement: The earnings and revenues beat pleased investors. Consequently, shares of the company were up in pre-market trading at the time of writing.

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