Earnings Review and Free Research Report: Copa Holdings’ Q2 Adjusted EPS Surged 191.7% Y-o-Y; Topped Forecasts

LONDON, UK / ACCESSWIRE / September 1, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Copa Holdings, S.A. (NYSE: CPA), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CPA, following the Company's reporting of its financial results on August 09, 2017, for the second quarter fiscal 2017 (Q2 FY17). The Panama City, Panama-based Company's total operating revenues increased 16.8% and its adjusted EPS surged 191.7% y-o-y; beating market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

In Q2 FY17, Copa Holdings' total operating revenues rose to $578.09 million from $494.80 million recorded at the end of Q2 FY16. Total operating revenue numbers for Q2 FY17 beat market consensus estimates of $548.30 million.

The holding Company for Panama's national airline reported net profit of $63.00 million, or $1.49 per diluted share, in Q2 FY17 compared to $54.53 million, or $1.29 per diluted share, in the prior year's comparable quarter. Excluding special items, adjusted net income for Q2 FY17 surged to $62.82 million, or $1.48 per diluted share, from $21.49 million, or $0.51 per diluted share, in the year ago same quarter. Adjusted net income for the reported period outperformed market consensus estimates of $1.42 per diluted share.

Operational Metrics

In the quarter ended on June 30, 2017, Copa Holdings incurred total operating expenses of $495.13 million versus $460.21 million in the year ago comparable quarter. The operating cost per available seat mile (CASM) fell 1.0% to 8.5 cents in Q2 FY17 from 8.6 cents in Q2 FY16. However, in Q2 FY17, CASM excluding fuel costs came in flat at 6.3 cents.

Operating profit increased to $82.96 million, or 14.4% of total operating revenues in Q2 FY17 from $34.59 million, or 7.0% of total operating revenues, in Q2 FY16. In the reported quarter, the Company generated $75.40 million of profit before taxes compared to $60.30 million in the same quarter of last year.

Revenue Segmentation

Copa Holdings' total Passenger revenue was $561.70 million for Q2 FY17 compared to $477.89 million reported in Q2 FY16. During the reported quarter, the airlines served 2.26 million customers, which was 12.6% higher than the 2.01 million recorded in the year ago same period. For the reported quarter, load factor was 82.2% versus 78.3% in prior year's comparable quarter. In Q2 FY17, consolidated passenger revenue per available seat mile (PRASM) also increased 8.2% to 9.7 cents from 9.0 cents in Q2 FY6. Furthermore, yield per passenger mile grew to 11.8 cents in Q2 FY17 from 11.4 cents in Q2 FY16.

During the reported period, the Cargo and mail revenue came in at $13.99 million compared to $14.03 million in Q2 FY16. Additionally, other operating revenues declined 16.7% to $2.40 million in Q2 FY17 from $2.88 million in Q2 FY16.

Cash Matters and Balance Sheet

During the six months ended June 30, 2017, Copa Holdings' cash flow from operations was $330.23 million versus $267.05 million in the prior year's comparable quarter. The Company's cash and cash equivalents balance as on June 30, 2017, stood at $243.65 million compared to $331.69 million as on December 31, 2016. Furthermore, the Company had long-term debt amounting to $965.37 million as on June 30, 2017, versus $961.41 million as on December 31, 2016.

Dividend

Copa Holdings hiked dividend payout for the third quarter FY17 from $0.51 to $0.75 per share, payable on September 15, 2017, on all outstanding Class A and Class B shares, to stockholders of record as of August 31, 2017.

Earnings Guidance

In its outlook for full year FY17, Copa Holdings anticipates consolidated capacity to grow approximately 8%, due to higher aircraft utilization. The operating margin for FY17 is forecasted to be in the range of 16% to18%.

Stock Performance

Copa's share price finished yesterday's trading session at $124.07, rising 1.44%. A total volume of 295.44 thousand shares have exchanged hands. The Company's stock price skyrocketed 10.80% in the last three months, 16.12% in the past six months, and 62.33% in the previous twelve months. Additionally, the stock soared 36.60% since the start of the year. Shares of the Company have a PE ratio of 16.38 and have a dividend yield of 2.42%. The stock currently has a market cap of $5.11 billion.

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SOURCE: Pro-Trader Daily