U.S. Markets closed
  • S&P 500

    4,432.99
    -40.76 (-0.91%)
     
  • Dow 30

    34,584.88
    -166.44 (-0.48%)
     
  • Nasdaq

    15,043.97
    -137.96 (-0.91%)
     
  • Russell 2000

    2,236.87
    +3.96 (+0.18%)
     
  • Crude Oil

    71.96
    -0.65 (-0.90%)
     
  • Gold

    1,753.90
    -2.80 (-0.16%)
     
  • Silver

    22.42
    -0.33 (-1.44%)
     
  • EUR/USD

    1.1732
    -0.0040 (-0.3402%)
     
  • 10-Yr Bond

    1.3700
    +0.0390 (+2.93%)
     
  • Vix

    20.81
    +2.12 (+11.34%)
     
  • GBP/USD

    1.3737
    -0.0059 (-0.4286%)
     
  • USD/JPY

    109.8950
    +0.1770 (+0.1613%)
     
  • BTC-USD

    48,725.88
    +661.48 (+1.38%)
     
  • CMC Crypto 200

    1,193.48
    -32.05 (-2.62%)
     
  • FTSE 100

    6,963.64
    -63.84 (-0.91%)
     
  • Nikkei 225

    30,500.05
    +176.71 (+0.58%)
     

High Debt Ails Hawaiian Holdings (HA) Amid Better Q2 Outlook

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Like other airlines, Hawaiian Holdings, Inc. HA is bearing the brunt of the coronavirus pandemic. The demand scenario, which started deteriorating in late January 2020, began to worsen in mid-March. Due to decline in passenger revenues (down 72.7% in first quarter of 2021), the carrier encountered wider-than-expected loss in each of the last four quarters.  

The company’s total debt to total capital ratio was 0.78 at the end of first-quarter 2021, higher than the previous quarter’s 0.68. Higher debt-to-capitalization ratio indicates that the proportion of debt to finance the company’s assets is increasing and so is the risk of insolvency.

However, owing to strong air-travel demand across North America, Hawaiian Holdings provided an improved outlook for second-quarter 2021 revenues. The carrier now expects second-quarter revenues to decline in 42-46% range from second-quarter 2019 actuals (previous forecast: 45-50% decline). The fresh guidance is better than the old one.

Due to a better revenue scenario, the company now predicts adjusted EBITDAAR between a negative $40 million and a negative $10 million compared with its prior anticipation of a negative $70 million and a negative $20 million.

Zacks Rank & Stocks to Consider

Hawaiian Holdings currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Transportation sector includes Landstar System, Inc. LSTR, Triton International Limited TRTN and Herc Holdings Inc. HRI. Herc Holdings and Landstar sport a Zacks Rank #1 (Strong Buy), while Triton carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term (three to five years) expected earnings per share growth rate for Landstar, Triton and Herc Holdings is projected at 12%, 10% and 42.9%, respectively.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>
 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report
 
Landstar System, Inc. (LSTR) : Free Stock Analysis Report
 
Herc Holdings Inc. (HRI) : Free Stock Analysis Report
 
Triton International Limited (TRTN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research