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Atlas Air (AAWW) to Report Q4 Earnings: What's in Store?
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Atlas Air Worldwide Holdings is scheduled to report fourth-quarter 2020 results on Feb 18, before market open.
The company has a stellar surprise record with its earnings having outshined the Zacks Consensus Estimate in each of the last four quarters, the average being in excess of 100%.
Atlas Air Worldwide Holdings Price and EPS Surprise
Moreover, the Zacks Consensus Estimate for fourth-quarter earnings has been stable at $3.29 per share in the past 60 days.
Against this backdrop, let’s take a look at the factors that might have impacted the company’s December-quarter performance.
We expect Atlas Air’s fourth-quarter performance to have been buoyed by upbeat airfreight demand despite the current turbulent scenario. In a bid to match this demand uptick, the company made adjustments to its fleet.
Moreover, fourth-quarter results are likely to benefit from higher commercial charter yields. Notably, the Zacks Consensus Estimate for direct contribution from the charter segment suggests an increase of more than 100% from the figure reported in fourth-quarter 2019.
Additionally, moderate fuel costs are likely to have aided the bottom line in the to-be-reported quarter. Notably, the Zacks Consensus Estimate for aircraft fuel expenses implies a 14.4% decline from the prior-year quarter’s reported number.
However, revenues from the ACMI segment are likely to have been higher from the third quarter of 2020 in the to-be-reported quarter owing to an uptick in the average revenue per block hour and increased flying. Notably, the Zacks Consensus Estimate for ACMI segment’s revenues is pegged at a 3% decrease from the reported figure in third-quarter 2020. Similarly, the same indicates a 14.3% decline from the figure reported in fourth-quarter 2019.
What Does the Zacks Model Say?
Our proven Zacks model does not predict an earnings beat for Atlas Air this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here as illustrated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Atlas Air has an Earnings ESP of 0.00% as the Most Accurate Estimate of $3.29 is in line with the Zacks Consensus Estimate.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Atlas Air carries a Zacks Rank #3, currently.
Highlights of Q3 Earnings
In the last reported quarter, the company reported earnings per share (excluding 6 cents from non-recurring items) of $2.84, surpassing the Zacks Consensus Estimate of $2.34. Revenues too increased 24.1% to $809.9 million from the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $792.1 million.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Golar LNG Limited (GLNG - Free Report) , Herc Holdings Inc. (HRI - Free Report) and Expeditors International of Washington (EXPD - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Golar LNG has an Earnings ESP of +50.00% and a Zacks Rank of 3 currently. The company will release fourth-quarter earnings on Feb 25.
Herc Holdings has an Earnings ESP of +9.63% and a Zacks Rank #2, presently. The company will announce fourth-quarter results on Feb 18.
Expeditors has an Earnings ESP of +0.32% and is currently Zacks #3 Ranked. The company is set to release fourth-quarter results on Feb 16.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Atlas Air (AAWW) to Report Q4 Earnings: What's in Store?
Atlas Air Worldwide Holdings is scheduled to report fourth-quarter 2020 results on Feb 18, before market open.
The company has a stellar surprise record with its earnings having outshined the Zacks Consensus Estimate in each of the last four quarters, the average being in excess of 100%.
Atlas Air Worldwide Holdings Price and EPS Surprise
Atlas Air Worldwide Holdings price-eps-surprise | Atlas Air Worldwide Holdings Quote
Moreover, the Zacks Consensus Estimate for fourth-quarter earnings has been stable at $3.29 per share in the past 60 days.
Against this backdrop, let’s take a look at the factors that might have impacted the company’s December-quarter performance.
We expect Atlas Air’s fourth-quarter performance to have been buoyed by upbeat airfreight demand despite the current turbulent scenario. In a bid to match this demand uptick, the company made adjustments to its fleet.
Moreover, fourth-quarter results are likely to benefit from higher commercial charter yields. Notably, the Zacks Consensus Estimate for direct contribution from the charter segment suggests an increase of more than 100% from the figure reported in fourth-quarter 2019.
Additionally, moderate fuel costs are likely to have aided the bottom line in the to-be-reported quarter. Notably, the Zacks Consensus Estimate for aircraft fuel expenses implies a 14.4% decline from the prior-year quarter’s reported number.
However, revenues from the ACMI segment are likely to have been higher from the third quarter of 2020 in the to-be-reported quarter owing to an uptick in the average revenue per block hour and increased flying. Notably, the Zacks Consensus Estimate for ACMI segment’s revenues is pegged at a 3% decrease from the reported figure in third-quarter 2020. Similarly, the same indicates a 14.3% decline from the figure reported in fourth-quarter 2019.
What Does the Zacks Model Say?
Our proven Zacks model does not predict an earnings beat for Atlas Air this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here as illustrated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Atlas Air has an Earnings ESP of 0.00% as the Most Accurate Estimate of $3.29 is in line with the Zacks Consensus Estimate.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Atlas Air carries a Zacks Rank #3, currently.
Highlights of Q3 Earnings
In the last reported quarter, the company reported earnings per share (excluding 6 cents from non-recurring items) of $2.84, surpassing the Zacks Consensus Estimate of $2.34. Revenues too increased 24.1% to $809.9 million from the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $792.1 million.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Golar LNG Limited (GLNG - Free Report) , Herc Holdings Inc. (HRI - Free Report) and Expeditors International of Washington (EXPD - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Golar LNG has an Earnings ESP of +50.00% and a Zacks Rank of 3 currently. The company will release fourth-quarter earnings on Feb 25.
Herc Holdings has an Earnings ESP of +9.63% and a Zacks Rank #2, presently. The company will announce fourth-quarter results on Feb 18.
Expeditors has an Earnings ESP of +0.32% and is currently Zacks #3 Ranked. The company is set to release fourth-quarter results on Feb 16.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>