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Airline Stocks Reporting Q1 Earnings on Apr 30: UAL, AAL
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With the coronavirus pandemic deflating air-travel demand to an unprecedented level, the not-so-long-ago high-flying airlines have been brought to their knees across the globe. This is because passenger revenues, the largest component of their top line, took a massive hit from shrunken air-travel demand.
With passenger demand for air travel almost evaporating in the face of the ongoing COVID-19 emergency, it is of no surprise that the first-quarter results of airline stocks have thus far been discouraging. Notably, Delta Air Lines (DAL - Free Report) , which kicked off this earnings season for the airlines industry on Apr 22, incurred its first quarterly loss since 2010, mainly due to the steep 18.2% drop in passenger revenues. Similarly, Southwest Airlines (LUV - Free Report) suffered its first quarterly loss in almost a decade with passenger revenues drooping 19% in the first quarter.
Against this backdrop, investors will keenly await earnings releases of United Airlines (UAL - Free Report) and American Airlines (AAL - Free Report) , which are slated for release on Apr 30.
Our quantitative model indicates that a company needs the right combination of the following two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of a positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
United Airlines: Even though passenger traffic is expected to have been strong in January and February, the fact that air-travel demand took a beating in March as the coronavirus was declared a pandemic by the World Health Organization aboutthat time, is likely to have stressed United Airlines’ top line in the to-be-reported quarter. However, low fuel prices are expected to have bumped up the bottom line in the March quarter.
American Airlines: Like United Airlines, American Airlines’ first-quarter performance is likely to have been hurt by dwindling passenger revenues. Also, with traffic declining at a faster rate than capacity cuts, load factor is likely to have contracted in the first quarter.
The proven Zacks model does not conclusively predict a beat for American Airlines this earnings season. This is because the stock has an Earnings ESP of -3.24% and is Zacks #3 Ranked. However, when we had issued our Q1 earnings preview article, the model predicted an earnings beat as it then had an Earnings ESP of +4.07%. The Zacks Rank was the same.
American Airlines Group Inc. Price and EPS Surprise
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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Airline Stocks Reporting Q1 Earnings on Apr 30: UAL, AAL
With the coronavirus pandemic deflating air-travel demand to an unprecedented level, the not-so-long-ago high-flying airlines have been brought to their knees across the globe. This is because passenger revenues, the largest component of their top line, took a massive hit from shrunken air-travel demand.
With passenger demand for air travel almost evaporating in the face of the ongoing COVID-19 emergency, it is of no surprise that the first-quarter results of airline stocks have thus far been discouraging. Notably, Delta Air Lines (DAL - Free Report) , which kicked off this earnings season for the airlines industry on Apr 22, incurred its first quarterly loss since 2010, mainly due to the steep 18.2% drop in passenger revenues. Similarly, Southwest Airlines (LUV - Free Report) suffered its first quarterly loss in almost a decade with passenger revenues drooping 19% in the first quarter.
Against this backdrop, investors will keenly await earnings releases of United Airlines (UAL - Free Report) and American Airlines (AAL - Free Report) , which are slated for release on Apr 30.
Our quantitative model indicates that a company needs the right combination of the following two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of a positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
United Airlines: Even though passenger traffic is expected to have been strong in January and February, the fact that air-travel demand took a beating in March as the coronavirus was declared a pandemic by the World Health Organization aboutthat time, is likely to have stressed United Airlines’ top line in the to-be-reported quarter. However, low fuel prices are expected to have bumped up the bottom line in the March quarter.
In fact, the proven Zacks model predicts an earnings beat for United Airlines this time around. This is because the carrier has an Earnings ESP of +3.23% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Airlines Holdings Inc Price and EPS Surprise
United Airlines Holdings Inc price-eps-surprise | United Airlines Holdings Inc Quote
American Airlines: Like United Airlines, American Airlines’ first-quarter performance is likely to have been hurt by dwindling passenger revenues. Also, with traffic declining at a faster rate than capacity cuts, load factor is likely to have contracted in the first quarter.
The proven Zacks model does not conclusively predict a beat for American Airlines this earnings season. This is because the stock has an Earnings ESP of -3.24% and is Zacks #3 Ranked. However, when we had issued our Q1 earnings preview article, the model predicted an earnings beat as it then had an Earnings ESP of +4.07%. The Zacks Rank was the same.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
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 >>