Here's the explanation in their 1st quarter earnings release.
"As a result of the Company's profitability and the reversal of the valuation allowance on its deferred tax assets at December 31, 2015, the Company was required to recognize a $417 million provision for income taxes in the 2016 first quarter. Of this amount, $414 million was non-cash due to the utilization of net operating losses (NOLs). For periods prior to 2016, the Company recognized a nominal income tax provision for certain states and international jurisdictions where NOLs were limited or not available to be used. Accordingly, amounts reported in the 2016 first quarter for income tax provision and net income are not comparable to the 2015 first quarter. Therefore, the Company is presenting adjusted earnings per share, which excludes special items and non-cash income tax provision in order to provide a more meaningful period-over-period comparison."
//so please explain the dramatic drop in eps to us novices//
$9 - no taxes reported against the earnings; $6 - taxes reported against the earnings (no tax actually paid because of the NOL carry forward). That's my understanding of it. Somebody can correct me if I'm wrong.
That "price target" was based on "point and figure" charting, which I've never seen to be very accurate. For example, a few months ago, point and figure predicted a "price target" of $30 for Ford Motor (which it obviously never got near). Then, it changed to a "price target" of $7 (which it probably won't get near either).
but I'm not asking if aal can hit the estimate....i'm asking uncle's opinion about whether he thinks analysts will bring down the estimate any further before earnings
and if jet fuel stays at around that same level for the remainder of june, do you think analysts will have to reduce their EPS estimates further or are they about right at current level?
" The company has continued to use fuel hedges to control costs while competitors may remain more exposed to rising fuel prices. " -- say what??????