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The Zacks Consensus Estimate for Alaska Air’s first-quarter bottom-line results has narrowed from a loss of $1.67 per share to a loss of $1.58 in the past 60 days. Moreover, ALK’s earnings topped the Zacks Consensus Estimate in all the last four quarters, the average being 15.9%.
Let’s see how things are shaping up for Alaska Air this earnings season:
With the continued recovery in air-travel demand and more Americans getting vaccinated, passenger revenues are expected to rise year over year. The Zacks Consensus Estimate for Alaska Air’s first-quarter passenger revenues indicates more than a 100% jump from the first-quarter 2021 reported number.
Rising fuel costs, thanks to a spike in oil prices, might have hurt the airline’s bottom-line performance. The carrier expects its first-quarter economic fuel cost to be $2.62 per gallon compared with the initial estimate of $2.45-$2.50. The Zacks Consensus Estimate for economic fuel cost per gallon is pegged at $2.56, suggesting an increase from $1.79 reported in first-quarter 2021.
In response to lower demand (stemming from the Omicron variant), Alaska Air reduced its capacity. For the first quarter, it estimates capacity to decline 11-12% from the first-quarter 2019 levels. Due to the unfavorable capacity guidance, the estimate for the first-quarter non-fuel unit costs is increased. The metric is now forecast to increase 18-19% in the first quarter from the comparable period’s level in 2019 (previous expectation: a rise of 15-18%).
Earnings Whispers
The proven Zacks model does not conclusively predict an earnings beat for Alaska 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 odds of an earnings beat. However, this is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Alaska Air has an Earnings ESP of -0.30%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Alaska Air carries a Zacks Rank #3.
Highlights of Q4 Earnings
Alaska Air’s earnings (excluding 10 cents from non-recurring items) of 24 cents per share surpassed the Zacks Consensus Estimate of 17 cents. Strong holiday-travel demand and favorable pricing aided the December quarter’s results. Operating revenues of $1,899 million outperformed the Zacks Consensus Estimate of $1,841.8 million. The top line surged more than 100% year over year with passenger revenues, accounting for 90.3% of the top line, soaring more than 100% owing to improvement in air-travel demand from the pandemic-led lows.
Stocks to Consider
Some better-ranked stocks in the broader Transportation sector are Landstar System (LSTR - Free Report) and Knight-Swift Transportation Holdings (KNX - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Landstar System has an Earnings ESP of +9.22% and is a Zacks #3 Ranked stock at present. LSTR will release first-quarter 2022 results on Apr 20.
Landstar’s first-quarter results are expected to reflect gains from an improved freight scenario in the United States. Higher truck rates owing to tight truck capacity are anticipated to have aided the March-quarter performance.
Knight-Swift has an Earnings ESP of +4.17% and is currently a #3 Ranked player. KNX will release first-quarter 2022 results on Apr 20.
Knight-Swift’s first-quarter results are expected to reflect a better freight environment in the United States. Revenues at the Logistics segment are likely to have been strong on increased load count as well as revenue per load.
Image: Bigstock
What's in the Cards for Alaska Air (ALK) This Earnings Season?
Alaska Air Group (ALK - Free Report) is scheduled to report first-quarter 2022 results on Apr 21, before market open.
The Zacks Consensus Estimate for Alaska Air’s first-quarter bottom-line results has narrowed from a loss of $1.67 per share to a loss of $1.58 in the past 60 days. Moreover, ALK’s earnings topped the Zacks Consensus Estimate in all the last four quarters, the average being 15.9%.
Let’s see how things are shaping up for Alaska Air this earnings season:
Alaska Air Group, Inc. Price and EPS Surprise
Alaska Air Group, Inc. price-eps-surprise | Alaska Air Group, Inc. Quote
Factors to Note
With the continued recovery in air-travel demand and more Americans getting vaccinated, passenger revenues are expected to rise year over year. The Zacks Consensus Estimate for Alaska Air’s first-quarter passenger revenues indicates more than a 100% jump from the first-quarter 2021 reported number.
Rising fuel costs, thanks to a spike in oil prices, might have hurt the airline’s bottom-line performance. The carrier expects its first-quarter economic fuel cost to be $2.62 per gallon compared with the initial estimate of $2.45-$2.50. The Zacks Consensus Estimate for economic fuel cost per gallon is pegged at $2.56, suggesting an increase from $1.79 reported in first-quarter 2021.
In response to lower demand (stemming from the Omicron variant), Alaska Air reduced its capacity. For the first quarter, it estimates capacity to decline 11-12% from the first-quarter 2019 levels. Due to the unfavorable capacity guidance, the estimate for the first-quarter non-fuel unit costs is increased. The metric is now forecast to increase 18-19% in the first quarter from the comparable period’s level in 2019 (previous expectation: a rise of 15-18%).
Earnings Whispers
The proven Zacks model does not conclusively predict an earnings beat for Alaska 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 odds of an earnings beat. However, this is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Alaska Air has an Earnings ESP of -0.30%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Alaska Air carries a Zacks Rank #3.
Highlights of Q4 Earnings
Alaska Air’s earnings (excluding 10 cents from non-recurring items) of 24 cents per share surpassed the Zacks Consensus Estimate of 17 cents. Strong holiday-travel demand and favorable pricing aided the December quarter’s results. Operating revenues of $1,899 million outperformed the Zacks Consensus Estimate of $1,841.8 million. The top line surged more than 100% year over year with passenger revenues, accounting for 90.3% of the top line, soaring more than 100% owing to improvement in air-travel demand from the pandemic-led lows.
Stocks to Consider
Some better-ranked stocks in the broader Transportation sector are Landstar System (LSTR - Free Report) and Knight-Swift Transportation Holdings (KNX - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Landstar System has an Earnings ESP of +9.22% and is a Zacks #3 Ranked stock at present. LSTR will release first-quarter 2022 results on Apr 20.
Landstar’s first-quarter results are expected to reflect gains from an improved freight scenario in the United States. Higher truck rates owing to tight truck capacity are anticipated to have aided the March-quarter performance.
Knight-Swift has an Earnings ESP of +4.17% and is currently a #3 Ranked player. KNX will release first-quarter 2022 results on Apr 20.
Knight-Swift’s first-quarter results are expected to reflect a better freight environment in the United States. Revenues at the Logistics segment are likely to have been strong on increased load count as well as revenue per load.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.