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JetBlue (JBLU) to Report Q4 Earnings: What's in the Offing?

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JetBlue Airways (JBLU - Free Report) is scheduled to report fourth-quarter 2021 results on Jan 27, before the market opens.

JBLU’s bottom line outpaced the Zacks Consensus Estimate in each of the last four quarters, the average beat being 18%. The Zacks Consensus Estimate for the December quarter is currently pegged at a loss of 40 cents compared with the the estimated loss of 35 cents, 60 days ago.

Against this backdrop, let’s discuss the factors that might have impacted JetBlue’s performance in the December quarter.

We expect JetBlue’s fourth-quarter performance to have been partly affected (as the cancellations started mainly from the Christmas Eve, so only a week’s disruptions will be considered in the fourth quarter) by the multiple flight cancellations due to Omicron-induced staffing shortages. Due to the disruptions, the Zacks Consensus Estimate for passenger revenues in the to-be-reported quarter indicates a 6.3% decline from the third-quarter 2021 reported level. Also, the Zacks Consensus Estimate for passenger revenues per available seat miles in the to-be-reported quarter suggests a 0.8% dip from the third-quarter 2021 reported level.

Moreover, high fuel costs might have dented the bottom line in the to-be-reported quarter. The Zacks Consensus Estimate for average fuel price per gallon is currently pegged at $2.49, indicating a 19.6% sequential increase.

With the effect of the omicron-led flight cancellations likely to have been limited in the December quarter, load factor (% of seats filled with passengers) is expected to have improved in the same. The Zacks Consensus Estimate for the to-be-reported quarter’s load factor is currently pegged at 81%, implying growth from 80% reported in the September quarter and 52% in the year-ago quarter.

What Does the Zacks Model Unveil?

The proven Zacks model predicts a bottom-line outperformance for Delta this time around. The combination of a positive  Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings surprise, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: JetBlue has an Earnings ESP of +6.83%. You can uncover the best stocks to buy or sell before they’re reported with our  Earnings ESP Filter.

Zacks Rank: JetBlue carries a Zacks Rank #4 (Sell), currently.

Highlights of Q3

JetBlue incurred a third-quarter 2021 loss (excluding 52 cents from non-recurring items) of 12 cents per share, comparing favorably with the Zacks Consensus Estimate of a loss of 19 cents. Quarterly loss per share was also narrower than the year-ago loss of $1.75.

Operating revenues of $1,972 million skyrocketed 300.8% year over year and also surpassed the Zacks Consensus Estimate of $1,927.9 million.

Stocks to Consider

Investors interested in the broader Transportation sector may consider C.H. Robinson Worldwide (CHRW - Free Report) ,Werner Enterprises (WERN - Free Report) and Landstar System (LSTR - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

C.H. Robinson currently has an Earnings ESP of +4.79% and a Zacks Rank #3. C.H. Robinson will report fourth-quarter results on Feb 2.

C.H. Robinson’s fourth-quarter results are likely to reflect higher revenues owing to the improving freight market conditions in the United States. Shares of CHRW have gained 7.4% in a year’s time.

Werner has an Earnings ESP of +0.35% and is currently a #3 Ranked player. Werner will release fourth-quarter 2021 results on Feb 3.

Werner’s move to expand its final mile capabilities across the Northeast United States and the Midwest through the acquisition of NEHDS Logistics is encouraging. The transaction helps Werner offer its customers expanded transportation solutions for the delivery of big and bulky products. 

Landstar System has an Earnings ESP of +1.56% and is Zacks #3 Ranked, presently. Landstar System will release fourth-quarter 2021 results on Jan 26.

Landstar’s fourth-quarter results are expected to reflect an improved freight scenario in the United States. Higher truck rates owing to tight truck capacity should aid the December-quarter performance.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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