The Zacks Analyst Blog Highlights: JetBlue Airways, Hawaiian Holdings, Ryanair Holdings, American Airlines Group and Delta Air Lines
For Immediate Release
Chicago, IL – July 26, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include JetBlue Airways Corp. JBLU, Hawaiian Holdings, Inc. HA, Ryanair Holdings plc RYAAY, American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday’s Analyst Blog:
Airline Stock Roundup: Q2 Earnings Edition
In the past week, key airline players like JetBlue Airways Corp. and Hawaiian Holdings, Inc. unveiled their respective quarterly numbers. Although both the companies reported better-than-expected earnings per share, the metric contracted on a year-over-year basis mainly due to high fuel costs. Both the US-based carriers reported lower-than-expected revenues as well.
European low-cost carrier Ryanair Holdings plc revealed its first-quarter fiscal 2019 (ended Jun 30, 2018) financial numbers. High costs and low average air fares resulted in the carrier’s profit after tax declining 20%.
On the non-earnings front, the China-Taiwan controversy grabbed headlines with carriers like American Airlines Group Inc. and Delta Air Lines, Inc. planning to comply with China’s demands of changing their reference pertaining to Taiwan on the airlines’ websites.
(Read the last Airline Stock Roundup for Jul 18, 2018)
Recap of the Past Week’s Most Important Stories
1. JetBlue Airways’ second-quarter 2018 earnings per share (excluding 76 cents from non-recurring items) of 38 cents surpassed the Zacks Consensus Estimate of 36 cents. However, the bottom line decreased significantly on a year-over-year basis primarily due to high fuel costs (read more: JetBlue Tops Q2 Earnings Estimates, Declines Y/Y).
Apart from the earnings report, the carrier was in the news when it revealed its intention to trim the workforce in a bid to cut costs. The reductions will reportedly be through layoffs, buyouts and attrition.
2. Hawaiian Holdings’ second-quarter earnings (excluding 12 cents from non-recurring items) of $1.44 per share outpaced the Zacks Consensus Estimate of $1.26. However, quarterly revenues of $715.4 million fell short of the Zacks Consensus Estimate of $717.8 million. While earnings per share decreased, revenues increased on a year-over-year basis.
Operating revenue per available seat mile in the quarter climbed 0.7% year over year. The metric is projected to be down 1.5% to up 1.5% on a year-over-year basis in the third quarter of 2018. The same is expected to grow in the band of 1-3% for 2018.
Capacity is projected to grow between 7.5% and 9.5% in the third quarter. The metric is expected to increase in the band of 5.5-7.5% for 2018. CASM, excluding fuel, is also projected to rise significantly for the ongoing quarter primarily owing to rising labor costs. Fuel cost per gallon (economic) is anticipated to be in the band of $2.10-$2.20 in the third quarter. The metric is envisioned in the $2.05-$2.15 band for 2018.
Hawaiian Holdings carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3. Ryanair Holdings reported financial and operating numbers with net profit of €319 million for the first quarter of fiscal 2019, down 20% year over year due to a 4% decline in average airfares. The top line expanded 9% to €2,079 million on the back of a 7% rise in traffic. Moreover, load factor came in at 96%. During the quarter, the carrier returned €265 million to shareholders through buybacks.
The carrier expects airfares to rise only 1% in the second quarter of fiscal 2019 compared with a 4% rise predicted earlier. Profit after tax in fiscal 2019 is projected at €1.25 billion. The carrier remains concerned about a Brexit-related impact.
4. U.S. based carriers are likely to comply with China’s request pertaining to Taiwan in the next few days. China had requested the carriers to refer Taiwan in their respective websites as “China Taiwan” or the “China Taiwan region.” The request, made in April, had asked the carriers not to refer Taiwan in any other manner.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
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Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
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