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Azul (AZUL) Posts Wider-Than-Expected Q1 Loss, Down Y/Y
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Azul (AZUL - Free Report) incurred a loss (excluded $2.44 from non-recurring items) of $1.78 per share in the first quarter of 2021, wider than the Zacks Consensus Estimate of a loss of $1.64. In the year-ago quarter, the company reported adjusted loss of $1.63 per share. As reflected in first-quarter results, Brazil is reeling under a second wave of the deadly coronavirus pandemic.
However, total revenues of $334 million missed the Zacks Consensus Estimate of $341.3 million. The top line fell 47.2% on a year-over-year basis. Passenger revenues, contributing 87.5% to the top line, plunged 39.8% year over year owing to the second wave of coronavirus. Cargo and other revenues surged 52.9% year over year primarily due to strong e-commerce growth.
Operational Statistics
Consolidated revenue passenger kilometers ("RPK”), measuring revenues generated per kilometer per passenger, fell 27.4%. The metric declined 7.3% domestically and 90.4% internationally.
Consolidated available seat kilometers (“ASK”), measuring an airline's passenger-carrying capacity, declined 23% year over year. While domestic capacity dropped 2.3%, international capacity contracted 88.3%.
With traffic declining more than the amount of capacity contraction, consolidated load factor (percentage of seats filled with passengers) deteriorated 460 basis points to 76.5%.
While total revenues per ASK or RASK declined 15.4%, passenger revenues per ASK or PRASK fell 21.8%. Meanwhile, cost per ASK (“CASK”) inched up 0.8% to 28.5 cents due to control on fuel and foreign exchange rates. Jet fuel prices declined 21.8% year over year mostly due to 23% reduction in capacity and 9.8% reduction in fuel burn per block hour. CASK, excluding fuel, moved up 0.4% to 20.1 cents. Average fare plunged 24.6% from the year-ago quarter’s figure.
Azul exited the first quarter with total passenger operating fleet of 159 aircraft. The average age of the fleet was 7.8 years. Contractual fleet size was 178.
Liquidity
Azul, carrying a Zacks Rank #4 (Sell), exited the first quarter with total liquidity of R$6.27 billion, down 7% year over year. Additionally, total debt increased 11% to R$19.4 billion from the December-end figure due to 9.6% end of period depreciation of the Brazilian real and the postponement of lease payments in the quarter. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sectorial Snapshots
Let’s glance through some of the other recently-released earnings reports from companies within the Zacks Transportation sector.
Canadian National Railway Co. (CNI - Free Report) reported first-quarter 2021 earnings (excluding 11 cents from non-recurring items) of 97 cents per share (C$1.23), missing the Zacks Consensus Estimate of 99 cents. Quarterly revenues of $2,791.6 million (C$3,535 million) lagged the Zacks Consensus Estimate of $2,813.1 million.
Landstar System (LSTR - Free Report) reported first-quarter 2021 earnings of $2.01 per share, surpassing the Zacks Consensus Estimate of $1.61. Revenues of $1,287.5 million outperformed the Zacks Consensus Estimate of $1,142.5 million.
Southwest Airlines (LUV - Free Report) incurred a loss of $1.72 per share (excluding $1.91 from non-recurring items) in the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.82. Moreover, operating revenues of $2,052 million surpassed the Zacks Consensus Estimate of $2,031.7 million.
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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Azul (AZUL) Posts Wider-Than-Expected Q1 Loss, Down Y/Y
Azul (AZUL - Free Report) incurred a loss (excluded $2.44 from non-recurring items) of $1.78 per share in the first quarter of 2021, wider than the Zacks Consensus Estimate of a loss of $1.64. In the year-ago quarter, the company reported adjusted loss of $1.63 per share. As reflected in first-quarter results, Brazil is reeling under a second wave of the deadly coronavirus pandemic.
However, total revenues of $334 million missed the Zacks Consensus Estimate of $341.3 million. The top line fell 47.2% on a year-over-year basis. Passenger revenues, contributing 87.5% to the top line, plunged 39.8% year over year owing to the second wave of coronavirus. Cargo and other revenues surged 52.9% year over year primarily due to strong e-commerce growth.
Operational Statistics
Consolidated revenue passenger kilometers ("RPK”), measuring revenues generated per kilometer per passenger, fell 27.4%. The metric declined 7.3% domestically and 90.4% internationally.
Consolidated available seat kilometers (“ASK”), measuring an airline's passenger-carrying capacity, declined 23% year over year. While domestic capacity dropped 2.3%, international capacity contracted 88.3%.
With traffic declining more than the amount of capacity contraction, consolidated load factor (percentage of seats filled with passengers) deteriorated 460 basis points to 76.5%.
AZUL SA Price, Consensus and EPS Surprise
AZUL SA price-consensus-eps-surprise-chart | AZUL SA Quote
While total revenues per ASK or RASK declined 15.4%, passenger revenues per ASK or PRASK fell 21.8%. Meanwhile, cost per ASK (“CASK”) inched up 0.8% to 28.5 cents due to control on fuel and foreign exchange rates. Jet fuel prices declined 21.8% year over year mostly due to 23% reduction in capacity and 9.8% reduction in fuel burn per block hour. CASK, excluding fuel, moved up 0.4% to 20.1 cents. Average fare plunged 24.6% from the year-ago quarter’s figure.
Azul exited the first quarter with total passenger operating fleet of 159 aircraft. The average age of the fleet was 7.8 years. Contractual fleet size was 178.
Liquidity
Azul, carrying a Zacks Rank #4 (Sell), exited the first quarter with total liquidity of R$6.27 billion, down 7% year over year. Additionally, total debt increased 11% to R$19.4 billion from the December-end figure due to 9.6% end of period depreciation of the Brazilian real and the postponement of lease payments in the quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sectorial Snapshots
Let’s glance through some of the other recently-released earnings reports from companies within the Zacks Transportation sector.
Canadian National Railway Co. (CNI - Free Report) reported first-quarter 2021 earnings (excluding 11 cents from non-recurring items) of 97 cents per share (C$1.23), missing the Zacks Consensus Estimate of 99 cents. Quarterly revenues of $2,791.6 million (C$3,535 million) lagged the Zacks Consensus Estimate of $2,813.1 million.
Landstar System (LSTR - Free Report) reported first-quarter 2021 earnings of $2.01 per share, surpassing the Zacks Consensus Estimate of $1.61. Revenues of $1,287.5 million outperformed the Zacks Consensus Estimate of $1,142.5 million.
Southwest Airlines (LUV - Free Report) incurred a loss of $1.72 per share (excluding $1.91 from non-recurring items) in the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.82. Moreover, operating revenues of $2,052 million surpassed the Zacks Consensus Estimate of $2,031.7 million.
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 >>