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Azul (AZUL) Stock Plummets 64.2% in a Month: Here's Why
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Shares of Latin American carrier Azul (AZUL - Free Report) shed 64.2% of value compared with the industry’s 38.3% decline in the past month.
Echoing the plight of most of its peers, Azul has been badly affected by the deflated air-travel demand due to the coronavirus outbreak, which dimmed its prospects in the process.
Coronavirus-Triggered Tumult Deters Azul’s Growth
Due to the coronavirus-induced feeble demand, Azul plans to cut consolidated capacity by 90% in the Mar 25-Apr 30 timeframe. During the period, the company aims to operate 70 non-stop flights per day to 25 cities.
Azul’s Latin American counterparts Gol Linhas and LATAM Airlines also trimmed capacity to match the extremely low-demand scenario. Another Latin American carrier Copa Holdings (CPA - Free Report) temporarily terminated all passenger operations.
Coming back to Azul, in a bid to cut costs for aiding its bottom line in such challenging times, the company decided to reduce its April payroll expenses by nearly 65%. To this end, it halved the pay for executive officers and directors apart from slashing managers’ salaries by 25%.
Moreover, the carrier deferred its 2019 profit sharing process apart from putting a pause on hiring personnel to manage fixed costs.
Negative Estimate Revisions and Lackluster Momentum Score
The pessimism revolving around the stock is evident from the Zacks Consensus Estimate for current-year earnings being revised 53.2% downward in the past 60 days to $1.31.
The company’s Momentum Score of F further highlights its short-term unattractiveness.
Additionally, Azul carries a Zacks Rank #5 (Strong Sell).
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Azul (AZUL) Stock Plummets 64.2% in a Month: Here's Why
Shares of Latin American carrier Azul (AZUL - Free Report) shed 64.2% of value compared with the industry’s 38.3% decline in the past month.
Echoing the plight of most of its peers, Azul has been badly affected by the deflated air-travel demand due to the coronavirus outbreak, which dimmed its prospects in the process.
Coronavirus-Triggered Tumult Deters Azul’s Growth
Due to the coronavirus-induced feeble demand, Azul plans to cut consolidated capacity by 90% in the Mar 25-Apr 30 timeframe. During the period, the company aims to operate 70 non-stop flights per day to 25 cities.
Azul’s Latin American counterparts Gol Linhas and LATAM Airlines also trimmed capacity to match the extremely low-demand scenario. Another Latin American carrier Copa Holdings (CPA - Free Report) temporarily terminated all passenger operations.
Coming back to Azul, in a bid to cut costs for aiding its bottom line in such challenging times, the company decided to reduce its April payroll expenses by nearly 65%. To this end, it halved the pay for executive officers and directors apart from slashing managers’ salaries by 25%.
Moreover, the carrier deferred its 2019 profit sharing process apart from putting a pause on hiring personnel to manage fixed costs.
Negative Estimate Revisions and Lackluster Momentum Score
The pessimism revolving around the stock is evident from the Zacks Consensus Estimate for current-year earnings being revised 53.2% downward in the past 60 days to $1.31.
The company’s Momentum Score of F further highlights its short-term unattractiveness.
Additionally, Azul carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>