We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Copa Holdings (CPA) Q1 Earnings Top, Down Y/Y on Weak Revenues
Read MoreHide Full Article
Copa Holdings, S.A.’s (CPA - Free Report) earnings of $2.11 per share beat the Zacks Consensus Estimate of $1.64. However, the bottom line declined 34.5% year over year. Downturn in some Latin American economies and lower revenues affected results.
Nevertheless, the massive earnings beat seems to have pleased investors. Consequently, the stock gained more than 8% in after-hours trading on May 8.
Quarterly revenues declined nearly 6% year over year to $672.2 million and also marginally missed the Zacks Consensus Estimate of $672.3 million. This downside was due to a 6.6% decrease in passenger revenues.
Operational Statistics
While passenger unit revenue per available seat mile (PRASM) fell 8.4%, yield per passenger mile was down 8.8%. On a consolidated basis, traffic (measured in revenue passenger miles or RPMs) rose 2.3% and capacity (or available seat miles/ASMs) inched up 1.9% in the reported quarter. As traffic growth outpaced capacity expansion, consolidated load factor improved 40 basis points (bps) to 83.3%.
Additionally, unit revenue per available seat mile (RASM) deteriorated 7.7%. Adjusted operating cost per available seat mile (CASM) decreased 3.2% in the reported quarter owing to better cost management. The metric excluding fuel costs dipped 2.9%. With oil prices at modest levels during the first quarter, average fuel price per gallon decreased 3.5% year over year to $2.09.
Copa Holdings, S.A. Price, Consensus and EPS Surprise
The company exited the first quarter with cash and cash equivalents of $212.27 million compared with $156.16 million at the end of 2018. Long-term debt amounted to $1.04 billion compared with $975.28 million at the end of last December.
Dividend Update
The company’s board has cleared a quarterly cash dividend of 65 cents per share, payable Jun 14, 2019 to shareholders of record as of May 31.
2019 Outlook
For the full year, Copa Holdings anticipates capacity to increase approximately 1%. Additionally, operating margin is projected in the 12-14% range year over year compared with 13% achieved in 2018. Effective price per gallon of jet fuel is estimated at $2.25 in the current year.
While shares of SkyWest and GATX have gained more than 5% each in a year’s time, the Swire Pacific stock has rallied more than 24%.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Image: Bigstock
Copa Holdings (CPA) Q1 Earnings Top, Down Y/Y on Weak Revenues
Copa Holdings, S.A.’s (CPA - Free Report) earnings of $2.11 per share beat the Zacks Consensus Estimate of $1.64. However, the bottom line declined 34.5% year over year. Downturn in some Latin American economies and lower revenues affected results.
Nevertheless, the massive earnings beat seems to have pleased investors. Consequently, the stock gained more than 8% in after-hours trading on May 8.
Quarterly revenues declined nearly 6% year over year to $672.2 million and also marginally missed the Zacks Consensus Estimate of $672.3 million. This downside was due to a 6.6% decrease in passenger revenues.
Operational Statistics
While passenger unit revenue per available seat mile (PRASM) fell 8.4%, yield per passenger mile was down 8.8%. On a consolidated basis, traffic (measured in revenue passenger miles or RPMs) rose 2.3% and capacity (or available seat miles/ASMs) inched up 1.9% in the reported quarter. As traffic growth outpaced capacity expansion, consolidated load factor improved 40 basis points (bps) to 83.3%.
Additionally, unit revenue per available seat mile (RASM) deteriorated 7.7%. Adjusted operating cost per available seat mile (CASM) decreased 3.2% in the reported quarter owing to better cost management. The metric excluding fuel costs dipped 2.9%. With oil prices at modest levels during the first quarter, average fuel price per gallon decreased 3.5% year over year to $2.09.
Copa Holdings, S.A. Price, Consensus and EPS Surprise
Copa Holdings, S.A. Price, Consensus and EPS Surprise | Copa Holdings, S.A. Quote
Liquidity
The company exited the first quarter with cash and cash equivalents of $212.27 million compared with $156.16 million at the end of 2018. Long-term debt amounted to $1.04 billion compared with $975.28 million at the end of last December.
Dividend Update
The company’s board has cleared a quarterly cash dividend of 65 cents per share, payable Jun 14, 2019 to shareholders of record as of May 31.
2019 Outlook
For the full year, Copa Holdings anticipates capacity to increase approximately 1%. Additionally, operating margin is projected in the 12-14% range year over year compared with 13% achieved in 2018. Effective price per gallon of jet fuel is estimated at $2.25 in the current year.
Zacks Rank & Key Picks
Copa Holdings carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are SkyWest, Inc. (SKYW - Free Report) , Swire Pacific Ltd. (SWRAY - Free Report) and GATX Corporation (GATX - Free Report) . While SkyWest and Swire Pacific sport a Zacks Rank #1 (Strong Buy), GATX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
While shares of SkyWest and GATX have gained more than 5% each in a year’s time, the Swire Pacific stock has rallied more than 24%.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>