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What Awaits International Airlines (ICAGY) in Q3 Earnings?

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International Consolidated Airlines Group (ICAGY - Free Report) is scheduled to release third-quarter 2019 earnings results on Oct 31.

The Zacks Consensus Estimate for third-quarter earnings has been revised 14.9% downward in the past 30 days. Given this backdrop, let’s delve into the factors that might have influenced the company’s performance in the September quarter.

As was the case in the last few quarters, a healthy uptick in passenger revenues owing to strong demand for air travel is likely to have boosted the company's third-quarter performance. Buoyant passenger unit revenues, particularly in the North America region owing to robust traffic during summer, are expected to have boosted overall passenger revenues in the September quarter.

However, weakness pertaining to cargo revenues is likely to have affected the third-quarter performance of this parent company of British Airways and Iberia. Cargo revenues are likely to have been hurt by softness related to air freight and global trade.

Despite initiatives to improve efficiencies, total expenses might have been high in the September quarter owing to escalated employee and supplier costs. The surge in total costs is expected to get reflected in the bottom line.

Highlights of Q2 Earnings

In the last reported quarter, International Consolidated Airlines Group delivered earnings of $1.97 per share that surpassed the Zacks Consensus Estimate of $1.25. Moreover, the bottom line improved on a year-over-year basis.

What the Zacks Model Unveils

Our proven Zacks model does not conclusively predict an earnings beat for International Consolidated Airlines Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. However, that is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: International Consolidated Airlines Group has an Earnings ESP of 0.00%.

Zacks Rank: The company carries a Zacks Rank #3, which increases the predictive power of ESP.

Stocks to Consider

Investors interested in the broader Transportation sector can check out Expeditors International of Washington (EXPD - Free Report) , Gol Linhas and GolarLNG (GLNG - Free Report) as these stocks possess the right mix of elements to beat on earnings in their next releases.

Expeditors has an Earnings ESP of +0.74% and a Zacks Rank of 3. The company will report third-quarter 2019 results on Nov 5. You can see the complete list of today’s Zacks #1 Rank stocks here.

Gol Linhas has an Earnings ESP of +1.59% and is Zacks #2 Ranked. The company will announce third-quarter earnings results on Oct 31.

Golar LNG has an Earnings ESP of +16.52% and is a #3 Ranked player. This company will release third-quarter financial numbers on Nov 26.

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