Global airline American Airlines (NASDAQ:AAL) will be reporting results tomorrow before market open. Here’s what to expect.
American Airlines beat analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $13.65 billion, up 1.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS estimates and full-year EPS guidance exceeding analysts’ expectations. It reported 65.5 billion revenue passenger miles, up 6.4% year on year.
Is American Airlines a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting American Airlines’s revenue to grow 2.8% year on year to $13.42 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.66 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. American Airlines has missed Wall Street’s revenue estimates five times over the last two years.
Looking at American Airlines’s peers in the travel and vacation providers segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 10%, meeting analysts’ expectations, and Delta Air Lines reported revenues up 9.4%, topping estimates by 7.4%. Carnival traded up 2.2% following the results while Delta Air Lines was also up 6%.
Read our full analysis of Carnival’s results here and Delta Air Lines’s results here.
There has been positive sentiment among investors in the travel and vacation providers segment, with share prices up 3.4% on average over the last month. American Airlines is up 10% during the same time and is heading into earnings with an average analyst price target of $20.24 (compared to the current share price of $19.06).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
