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Copa Holdings (CPA) Q4 Earnings Top Estimates, Increase Y/Y
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Copa Holdings (CPA - Free Report) delivered better-than-expected earnings and revenues in the fourth quarter of 2021, following which, shares of the company moved up 3.3% in after-market trading on Feb 9.
CPA’s fourth-quarter earnings (excluding 71 cents from non-recurring items) of $1.98 per share beat the Zacks Consensus Estimate of $1.15 per share. In the year-ago quarter, the company had incurred a loss of $2 per share due to coronavirus-led depressed air-travel demand.
Quarterly revenues of 575 million also outperformed the Zacks Consensus Estimate of $546.2 million and rose significantly year over year, thanks to an improvement in air travel.
Copa Holdings, S.A. Price, Consensus and EPS Surprise
Below, we present all comparisons (in % terms) to fourth-quarter 2019 levels (pre-coronavirus).
Passenger revenues (contributed 94% to the top line) plunged 17.8% to $540.6 million in the fourth quarter due to 16.9% less capacity (measured in available seat miles/ASMs).
On a consolidated basis, traffic (measured in revenue passenger miles or RPMs) fell 18.7%. As traffic decline was more than the amount of capacity contraction, load factor (% of seats filled with passengers) contracted 1.8 percentage points to 83.5% in the reported quarter. Passenger revenue per available seat miles dropped 1.1% to 10.6 cents. Additionally, revenue per available seat mile (RASM) rose 1.5% to 11.3 cents. Cost per available seat mile (CASM) declined 23.9%. Excluding fuel, the metric fell 33.8%.
Total operating expenses declined 36.8% to $420 million, backed by lower fuel expenses and reduction in wages, salaries, benefits and other employees' expenses. Expenses on fuel fell 13%, primarily due to reduced fuel consumption (down 22.8% to 61 million). Expenses on wages, salaries and other employee benefits fell 30.1% due to reduced headcount. Passenger servicing costs fell 50.8%. Flight operation costs also plunged 23%.
Other Details
Copa Holdings exited the fourth quarter with cash and cash equivalents of $211.1 million compared with $119.10 million at the end of 2020. Total debt, including lease liabilities, was $1.6 billion at the end of the fourth quarter.
This Zacks Rank #4 (Sell) company exited the fourth quarter with a consolidated fleet of 91 aircraft — 68 Boeing 737-800s, 14 Boeing 737 MAX 9s and nine Boeing 737-700s. During the fourth quarter, Copa Holdings took delivery of one Boeing 737 MAX 9, completed the conversion of one Boeing 737-800 into a freighter and decided to retain three Boeing 737-700s previously classified as assets held for sale. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
Given the impact of the Omicron variant on capacity, load factor and yields as well as higher fuel prices, CPA expects its operating margin in the range of 3-6% for first-quarter 2022.
Capacity is expected to reach approximately 5.7 billion or roughly 88% of first-quarter 2019’s ASM.
Total revenues are anticipated to be approximately $550 million or about 82% of first-quarter 2019’s total revenue. CASM (ex-fuel) is expected to be 6 cents.
Fuel price per gallon is likely to be $2.79, calling for an increase of 15% quarter over quarter.
For 2022, CPA expects to operate approximately 93% of 2019 ASMs and deliver a CASM (ex-fuel) of approximately 5.9 cents.
J.B. Hunt Transport Services, sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2021 earnings of $2.28 per share. The figure surpassed the Zacks Consensus Estimate of $1.99. The bottom line surged 58.3% year over year on the back of higher revenues across all segments.
J.B. Hunt’s operating revenues of $3,497 million also outperformed the Zacks Consensus Estimate of $3,287.8 million. The top line increased 27.7% year over year. Total operating revenues, excluding fuel surcharges, rose 21.7% year over year.
United Airlines, carrying a Zacks Rank #5, incurred a loss (excluding 39 cents from non-recurring items) of $1.60 per share in fourth-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of $2.23. The amount of loss narrowed 77.1% year over year.
United Airlines’ operating revenues of $8,192 million also outperformed the Zacks Consensus Estimate of $7,930.9 million. The top line surged more than 100% year over year, with passenger revenues contributing 84% to the top line and surging 185.4% to $6,878 million.
Delta, carrying a Zacks Rank #5, reported fourth-quarter 2021 earnings (excluding 86 cents from non-recurring items) of 22 cents per share, outpacing the Zacks Consensus Estimate of 15 cents. The bottom line improved from the year-ago quarter’s loss of $2.53 per share. Strong holiday travel demand and favorable pricing aided the December quarter’s results.
Delta’s revenues came in at $9,470 million, beating the Zacks Consensus Estimate of $9,232.1 million and soaring more than 100% year over year. The upside can be attributed to people resorting to air travel during the holidays.
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Copa Holdings (CPA) Q4 Earnings Top Estimates, Increase Y/Y
Copa Holdings (CPA - Free Report) delivered better-than-expected earnings and revenues in the fourth quarter of 2021, following which, shares of the company moved up 3.3% in after-market trading on Feb 9.
CPA’s fourth-quarter earnings (excluding 71 cents from non-recurring items) of $1.98 per share beat the Zacks Consensus Estimate of $1.15 per share. In the year-ago quarter, the company had incurred a loss of $2 per share due to coronavirus-led depressed air-travel demand.
Quarterly revenues of 575 million also outperformed the Zacks Consensus Estimate of $546.2 million and rose significantly year over year, thanks to an improvement in air travel.
Copa Holdings, S.A. Price, Consensus and EPS Surprise
Copa Holdings, S.A. price-consensus-eps-surprise-chart | Copa Holdings, S.A. Quote
Operational Statistics
Below, we present all comparisons (in % terms) to fourth-quarter 2019 levels (pre-coronavirus).
Passenger revenues (contributed 94% to the top line) plunged 17.8% to $540.6 million in the fourth quarter due to 16.9% less capacity (measured in available seat miles/ASMs).
On a consolidated basis, traffic (measured in revenue passenger miles or RPMs) fell 18.7%. As traffic decline was more than the amount of capacity contraction, load factor (% of seats filled with passengers) contracted 1.8 percentage points to 83.5% in the reported quarter. Passenger revenue per available seat miles dropped 1.1% to 10.6 cents. Additionally, revenue per available seat mile (RASM) rose 1.5% to 11.3 cents. Cost per available seat mile (CASM) declined 23.9%. Excluding fuel, the metric fell 33.8%.
Total operating expenses declined 36.8% to $420 million, backed by lower fuel expenses and reduction in wages, salaries, benefits and other employees' expenses. Expenses on fuel fell 13%, primarily due to reduced fuel consumption (down 22.8% to 61 million). Expenses on wages, salaries and other employee benefits fell 30.1% due to reduced headcount. Passenger servicing costs fell 50.8%. Flight operation costs also plunged 23%.
Other Details
Copa Holdings exited the fourth quarter with cash and cash equivalents of $211.1 million compared with $119.10 million at the end of 2020. Total debt, including lease liabilities, was $1.6 billion at the end of the fourth quarter.
This Zacks Rank #4 (Sell) company exited the fourth quarter with a consolidated fleet of 91 aircraft — 68 Boeing 737-800s, 14 Boeing 737 MAX 9s and nine Boeing 737-700s. During the fourth quarter, Copa Holdings took delivery of one Boeing 737 MAX 9, completed the conversion of one Boeing 737-800 into a freighter and decided to retain three Boeing 737-700s previously classified as assets held for sale. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
Given the impact of the Omicron variant on capacity, load factor and yields as well as higher fuel prices, CPA expects its operating margin in the range of 3-6% for first-quarter 2022.
Capacity is expected to reach approximately 5.7 billion or roughly 88% of first-quarter 2019’s ASM.
Total revenues are anticipated to be approximately $550 million or about 82% of first-quarter 2019’s total revenue. CASM (ex-fuel) is expected to be 6 cents.
Fuel price per gallon is likely to be $2.79, calling for an increase of 15% quarter over quarter.
For 2022, CPA expects to operate approximately 93% of 2019 ASMs and deliver a CASM (ex-fuel) of approximately 5.9 cents.
Sectorial Snapshot
Within the broader Transportation sector J.B. Hunt Transport Services (JBHT - Free Report) , United Airlines (UAL - Free Report) and Delta Air Lines (DAL - Free Report) recently reported fourth-quarter 2021 results.
J.B. Hunt Transport Services, sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2021 earnings of $2.28 per share. The figure surpassed the Zacks Consensus Estimate of $1.99. The bottom line surged 58.3% year over year on the back of higher revenues across all segments.
J.B. Hunt’s operating revenues of $3,497 million also outperformed the Zacks Consensus Estimate of $3,287.8 million. The top line increased 27.7% year over year. Total operating revenues, excluding fuel surcharges, rose 21.7% year over year.
United Airlines, carrying a Zacks Rank #5, incurred a loss (excluding 39 cents from non-recurring items) of $1.60 per share in fourth-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of $2.23. The amount of loss narrowed 77.1% year over year.
United Airlines’ operating revenues of $8,192 million also outperformed the Zacks Consensus Estimate of $7,930.9 million. The top line surged more than 100% year over year, with passenger revenues contributing 84% to the top line and surging 185.4% to $6,878 million.
Delta, carrying a Zacks Rank #5, reported fourth-quarter 2021 earnings (excluding 86 cents from non-recurring items) of 22 cents per share, outpacing the Zacks Consensus Estimate of 15 cents. The bottom line improved from the year-ago quarter’s loss of $2.53 per share. Strong holiday travel demand and favorable pricing aided the December quarter’s results.
Delta’s revenues came in at $9,470 million, beating the Zacks Consensus Estimate of $9,232.1 million and soaring more than 100% year over year. The upside can be attributed to people resorting to air travel during the holidays.