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The Zacks Consensus Estimate for fourth-quarter loss has narrowed to 79 cents from a loss of $2.37 90 days ago. The carrier has a trailing four-quarter earnings surprise of 143.05% (one miss and three beats), on average.
Let’s take a look at the factors that are expected to have influenced the company’s performance in the December quarter.
Improvement in air-travel demand in Latin America (owing to increased inoculation programs) despite the Omicron-induced woes is expected to get reflected in Copa Holdings’ passenger revenues. The Zacks Consensus Estimate for fourth-quarter passenger revenues indicates more than a 100% rise from the fourth-quarter 2020’s reported number.
With this anticipated surge in passenger revenues, the company’s top line is likely to reflect a year-over-year surge. The Zacks Consensus Estimate for the same is pegged at $545.4 million, indicating growth of more than 100% from the year-ago quarter’s reported number.
Capacity, measured in available seat miles/ASMs and traffic, measured in revenue passenger miles/RPM indicates a rise of 16.1% and 17.2%, respectively, from third-quarter 2021 reported figure. Load factor for the fourth quarter is estimated to be at 80%, suggesting a sequential rise from 79%.
A rise in fuel cost is expected to have hurt the carrier’s fourth-quarter bottom line. Per the Zacks Consensus Estimate, the average fuel price per gallon for the to-be-reported quarter is likely to be $2.54, indicating a sequential increase of 19.3%.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Copa Holdings 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 beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Copa Holdings has an Earnings ESP of -13.86%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Copa Holdings carries a Zacks Rank #4 (Sell).
Highlights of Q3 Earnings
Copa Holdings’ delivered earnings (excluding 51 cents from non-recurring items) of 70 cents per share in the third quarter, beating the Zacks Consensus Estimate of a loss of 17 cents. Quarterly revenues of $445 million also outperformed the Zacks Consensus Estimate of $420.9 million and rose significantly year over year.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Eagle Bulk Shipping Inc. , Expeditors International of Washington, Inc. (EXPD - Free Report) and International Consolidated Airlines Group, S.A. (ICAGY - Free Report) ), as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Eagle Bulk currently has an Earnings ESP of +25.88% and a Zacks Rank #3. Eagle Bulk will report fourth-quarter results on Mar 3.
Eagle Bulk’s shares have gained 119% in a year. It has a trailing four-quarter earnings surprise of 33% (one miss and three beats), on average.
Expeditors has an Earnings ESP of +2.97% and is currently a #2 Ranked player. Expeditors will release fourth-quarter 2021 results on Feb 22.
EXPD is being aided by an uptick in airfreight revenues. Due to the coronavirus-induced imbalance between scheduled capacity and demand, the company is using charters to meet customer needs. Revenues from the airfreight services unit increased approximately 54% year over year in the first nine months of 2021.
International Consolidated Airlines has an Earnings ESP of +27.78% and is currently a #3 Ranked player. ICAGY will release fourth-quarter 2021 results on Feb 25.
International Consolidated Airlines’ 2022 earnings and revenues are expected to increase 108.7% and 153.1%, respectively.
Image: Bigstock
How Will Copa Holdings (CPA) Fare This Q4 Earnings Season?
Copa Holdings (CPA - Free Report) is scheduled to report fourth-quarter 2021 earnings on Feb 9, after market close.
The Zacks Consensus Estimate for fourth-quarter loss has narrowed to 79 cents from a loss of $2.37 90 days ago. The carrier has a trailing four-quarter earnings surprise of 143.05% (one miss and three beats), on average.
Let’s take a look at the factors that are expected to have influenced the company’s performance in the December quarter.
Copa Holdings, S.A. Price and EPS Surprise
Copa Holdings, S.A. price-eps-surprise | Copa Holdings, S.A. Quote
Improvement in air-travel demand in Latin America (owing to increased inoculation programs) despite the Omicron-induced woes is expected to get reflected in Copa Holdings’ passenger revenues. The Zacks Consensus Estimate for fourth-quarter passenger revenues indicates more than a 100% rise from the fourth-quarter 2020’s reported number.
With this anticipated surge in passenger revenues, the company’s top line is likely to reflect a year-over-year surge. The Zacks Consensus Estimate for the same is pegged at $545.4 million, indicating growth of more than 100% from the year-ago quarter’s reported number.
Capacity, measured in available seat miles/ASMs and traffic, measured in revenue passenger miles/RPM indicates a rise of 16.1% and 17.2%, respectively, from third-quarter 2021 reported figure. Load factor for the fourth quarter is estimated to be at 80%, suggesting a sequential rise from 79%.
A rise in fuel cost is expected to have hurt the carrier’s fourth-quarter bottom line. Per the Zacks Consensus Estimate, the average fuel price per gallon for the to-be-reported quarter is likely to be $2.54, indicating a sequential increase of 19.3%.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Copa Holdings 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 beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Copa Holdings has an Earnings ESP of -13.86%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Copa Holdings carries a Zacks Rank #4 (Sell).
Highlights of Q3 Earnings
Copa Holdings’ delivered earnings (excluding 51 cents from non-recurring items) of 70 cents per share in the third quarter, beating the Zacks Consensus Estimate of a loss of 17 cents. Quarterly revenues of $445 million also outperformed the Zacks Consensus Estimate of $420.9 million and rose significantly year over year.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Eagle Bulk Shipping Inc. , Expeditors International of Washington, Inc. (EXPD - Free Report) and International Consolidated Airlines Group, S.A. (ICAGY - Free Report) ), as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Eagle Bulk currently has an Earnings ESP of +25.88% and a Zacks Rank #3. Eagle Bulk will report fourth-quarter results on Mar 3.
Eagle Bulk’s shares have gained 119% in a year. It has a trailing four-quarter earnings surprise of 33% (one miss and three beats), on average.
Expeditors has an Earnings ESP of +2.97% and is currently a #2 Ranked player. Expeditors will release fourth-quarter 2021 results on Feb 22.
EXPD is being aided by an uptick in airfreight revenues. Due to the coronavirus-induced imbalance between scheduled capacity and demand, the company is using charters to meet customer needs. Revenues from the airfreight services unit increased approximately 54% year over year in the first nine months of 2021.
International Consolidated Airlines has an Earnings ESP of +27.78% and is currently a #3 Ranked player. ICAGY will release fourth-quarter 2021 results on Feb 25.
International Consolidated Airlines’ 2022 earnings and revenues are expected to increase 108.7% and 153.1%, respectively.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.