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What's in Store for Hawaiian Holdings (HA) in Q3 Earnings?

Zacks Equity Research
·3 min read

Hawaiian Holdings Inc HA is scheduled to report third-quarter 2020 results on Oct 27, after market close.

Let’s take a look at the factors that are expected to have influenced the company’s third-quarter performance.

Weak air-travel demand amid coronavirus concerns is expected to have impacted the airline’s passenger revenues. The Zacks Consensus Estimate for third-quarter passenger revenues indicates an approximate 90% plunge from the year-ago reported number. The same for total revenues hints at an 85.9% decline from third-quarter 2019’s reported figure.

To match the low-demand scenario, Hawaiian Holdings has reduced its capacity significantly. For the third quarter, the carrier expects capacity to decline 87% year over year. The Zacks Consensus Estimate for the same also suggests an 87% drop from that reported in the third quarter of 2019.

With fuel expenses comprising a major chunk of airline expenditures, low fuel prices are anticipated to have supported the bottom line in the third quarter. Apart from modest fuel prices, reduced fuel consumption due to significantly reduced capacity is likely to have caused a decline in fuel expenses.

Hawaiian Holdings, Inc. Price and EPS Surprise

Hawaiian Holdings, Inc. Price and EPS Surprise
Hawaiian Holdings, Inc. Price and EPS Surprise

Hawaiian Holdings, Inc. price-eps-surprise | Hawaiian Holdings, Inc. Quote

Earnings Whispers

The proven Zacks model does not conclusively predict an earnings beat for Hawaiian Holdings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Hawaiian Holdings has an Earnings ESP of -2.69% as the Most Accurate Estimate is pegged at a loss of $3.59, while the Zacks Consensus Estimate is pinned at a loss of $3.50. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Hawaiian Holdings carries a Zacks Rank #4 (Sell).

Highlights of Q2 Earnings

In the last-reported quarter, the company delivered a negative earnings surprise of 5.5% with wider than expected loss. Quarterly revenues missed the Zacks Consensus Estimate and also declined 91.6% year over year with passenger revenues tumbling 95.4% due to coronavirus-induced weak travel demand.

Stocks to Consider

Investors interested in the broader Transportation sector may consider C.H. Robinson Worldwide Inc CHRW, United Parcel Service Inc UPS and Schneider National Inc SNDR as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

C.H. Robinson has an Earnings ESP of +1.35% and a Zacks Rank #2. The company will release third-quarter earnings numbers on Oct 27.

UPS has an Earnings ESP of +5.40% and a Zacks Rank #2. The company will announce third-quarter results on Oct 28.

Schneider has an Earnings ESP of +1.82% and a Zacks Rank of 2. The company will release third-quarter earnings on Oct 29.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
 
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
 
Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report
 
Schneider National, Inc. (SNDR) : Free Stock Analysis Report
 
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