American Airlines Group Inc. $AAL, Southwest Airlines Co. $LUV, and JetBlue Airways Corp. $JBLU are going to report earnings on Thursday, January 24th. It’s been a month since the start of the US government shutdown. This has led the reducing of the domestic travel and bad weather also added worries to the already troubled airline companies. Fuel prices, although at modest levels lately, are likely to hamper the companies’ bottom-line growth in the fourth quarter. The projected fuel price per gallon is between $2.22 and $2.27 compared with $1.91 in the year-ago period. The political uncertainty and fuel costs would play a vital role in final reports.
Analysts on average expect the world’s largest airlines – American Airlines $AAL – to earn $1.04 a share on revenue of $10.98 billion for the final quarter of 2018. While the Most Accurate Estimate stands at $1 per share, while the Zacks Consensus Estimate expects the EPS of $1.03. The airline announced that their revenue for Q4 2018 and profit for 2018 will be less than previously expected. This isn’t great news if you’re an American Airlines investor. While the company surpassed Street’s earnings estimates during the last quarter, it fell short of revenue predictions.
American Airlines currently carries a Zacks Rank #2 “Buy”, which increases the predictive power of ESP.
Southwest Airlines Co
Equities research analysts expect Southwest Airlines Co $LUV to post $5.68 billion in sales for the current fiscal quarter, according to Zacks. Analysts expect this airline to earn $1.06 per share. During the same quarter in the prior year, the company earned $0.88 EPS.
In their Third-Quarter Earnings Report, The airline beat Thomson Reuters’ consensus estimate of $1.06 by showing $1.08 earnings per share. The company had revenue of $5.58 billion for the quarter, while analysts estimate was of $5.56 billion. Over the last four quarters, the company has beaten consensus EPS estimates three times.
The stock has an average rating of “Buy” and an average target price of $61.56.
The market expects JetBlue Airways $JBLU to deliver a year-over-year increase in earnings on higher revenues. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management’s discussion of business conditions on the earnings call, it’s worth handicapping the probability of a positive EPS surprise.
This airline is expected to post quarterly earnings of $0.40 per share in its upcoming report on revenue of $1.97 billion.
For the last reported quarter, it was expected that JetBlue posted earnings of $0.43 per share beating the consensus estimates by a cent. Over the last four quarters, the company has beaten consensus EPS estimates three times.
The stock currently rated with a “Buy” rating by Zacks Rank.