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Copa Holdings (CPA) Down 4.3% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Copa Holdings (CPA - Free Report) . Shares have lost about 4.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Copa Holdings due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Copa Holdings Beats on Q1 Earnings
Copa Holdings’ reported first-quarter 2022 earnings (excluding 23 cents from non-recurring items) of 70 cents per share, which surpassed the Zacks Consensus Estimate of 36 cents. In the year-ago quarter, the company had incurred a loss of $2.23 per share due to coronavirus-led depressed air-travel demand.
Quarterly revenues of $571.6 million outperformed the Zacks Consensus Estimate of $566.1 million and rose significantly year over year, thanks to an improvement in air-travel demand.
Operational Statistics
Below, we present all comparisons (in % terms) with first-quarter 2019 levels (pre-coronavirus).
Passenger revenues (contributed 94.7% to the top line) plunged 16.6% to $541.25 million in the first quarter due to 12.4% less capacity (measured in available seat miles/ASMs). Cargo and mail revenues jumped 40.6% to $21.54 million, owing to higher cargo volumes and yields. Total revenues declined 15% in the reported quarter.
On a consolidated basis, traffic (measured in revenue passenger miles or RPMs) fell 14.2%. As traffic decline was more than the amount of capacity contraction, load factor (% of seats filled with passengers) contracted 1.8 percentage points to 81.5% in the reported quarter. Passenger revenue per available seat miles dropped 4.8% to 9.6 cents. Additionally, revenue per available seat mile (RASM) fell 3% to 10.2 cents. Cost per available seat mile (CASM) increased 7.5%. Excluding fuel, the metric dipped 1.6%. Average fuel price per liter soared 37.4% to $2.87.
Total operating expenses declined 5.8% to $526.81 million due to lower wages, salaries, benefits and other employees' expenses, and sales and distribution costs. Expenses on wages, salaries and other employee benefits fell 21% due to reduced headcount. Sales and distribution costs declined 13.4%. Passenger servicing costs dropped 39%. Flight operation costs decreased 14.8%.
Other Details
Copa Holdings exited the first quarter with cash and cash equivalents of $249.01 million compared with $211.08 million at the end of December 2021. Total debt, including lease liabilities, was $1.6 billion at the end of the first quarter.
Copa Holdings, exited the first quarter with a consolidated fleet of 93 aircraft — 68 Boeing 737-800s, 16 Boeing 737 MAX 9s, and nine Boeing 737-700s. During the first quarter, the carrier took delivery of two Boeing 737 MAX 9 aircraft.
2022 Outlook
Due to escalating fuel prices, among other factors, Copa holdings expects second-quarter operating margin to be only 3-5%. The company expects capacity to be approximately 5.9 billion, which is equivalent to 96% of the second-quarter 2019 capacity. Load factor is estimated to be around 86% in the second quarter. Fuel price is estimated to be $4 per gallon.
For the full year, CPA expects capacity to reach approximately 98% of the 2019 level.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted -15.03% due to these changes.
VGM Scores
At this time, Copa Holdings has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Copa Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Copa Holdings belongs to the Zacks Transportation - Airline industry. Another stock from the same industry, Spirit (SAVE - Free Report) , has gained 36.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Spirit reported revenues of $967.32 million in the last reported quarter, representing a year-over-year change of +109.7%. EPS of -$1.60 for the same period compares with -$2.48 a year ago.
Spirit is expected to post a loss of $0.32 per share for the current quarter, representing a year-over-year change of +5.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Spirit has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Copa Holdings (CPA) Down 4.3% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Copa Holdings (CPA - Free Report) . Shares have lost about 4.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Copa Holdings due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Copa Holdings Beats on Q1 Earnings
Copa Holdings’ reported first-quarter 2022 earnings (excluding 23 cents from non-recurring items) of 70 cents per share, which surpassed the Zacks Consensus Estimate of 36 cents. In the year-ago quarter, the company had incurred a loss of $2.23 per share due to coronavirus-led depressed air-travel demand.
Quarterly revenues of $571.6 million outperformed the Zacks Consensus Estimate of $566.1 million and rose significantly year over year, thanks to an improvement in air-travel demand.
Operational Statistics
Below, we present all comparisons (in % terms) with first-quarter 2019 levels (pre-coronavirus).
Passenger revenues (contributed 94.7% to the top line) plunged 16.6% to $541.25 million in the first quarter due to 12.4% less capacity (measured in available seat miles/ASMs). Cargo and mail revenues jumped 40.6% to $21.54 million, owing to higher cargo volumes and yields. Total revenues declined 15% in the reported quarter.
On a consolidated basis, traffic (measured in revenue passenger miles or RPMs) fell 14.2%. As traffic decline was more than the amount of capacity contraction, load factor (% of seats filled with passengers) contracted 1.8 percentage points to 81.5% in the reported quarter. Passenger revenue per available seat miles dropped 4.8% to 9.6 cents. Additionally, revenue per available seat mile (RASM) fell 3% to 10.2 cents. Cost per available seat mile (CASM) increased 7.5%. Excluding fuel, the metric dipped 1.6%. Average fuel price per liter soared 37.4% to $2.87.
Total operating expenses declined 5.8% to $526.81 million due to lower wages, salaries, benefits and other employees' expenses, and sales and distribution costs. Expenses on wages, salaries and other employee benefits fell 21% due to reduced headcount. Sales and distribution costs declined 13.4%. Passenger servicing costs dropped 39%. Flight operation costs decreased 14.8%.
Other Details
Copa Holdings exited the first quarter with cash and cash equivalents of $249.01 million compared with $211.08 million at the end of December 2021. Total debt, including lease liabilities, was $1.6 billion at the end of the first quarter.
Copa Holdings, exited the first quarter with a consolidated fleet of 93 aircraft — 68 Boeing 737-800s, 16 Boeing 737 MAX 9s, and nine Boeing 737-700s. During the first quarter, the carrier took delivery of two Boeing 737 MAX 9 aircraft.
2022 Outlook
Due to escalating fuel prices, among other factors, Copa holdings expects second-quarter operating margin to be only 3-5%. The company expects capacity to be approximately 5.9 billion, which is equivalent to 96% of the second-quarter 2019 capacity. Load factor is estimated to be around 86% in the second quarter. Fuel price is estimated to be $4 per gallon.
For the full year, CPA expects capacity to reach approximately 98% of the 2019 level.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted -15.03% due to these changes.
VGM Scores
At this time, Copa Holdings has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Copa Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Copa Holdings belongs to the Zacks Transportation - Airline industry. Another stock from the same industry, Spirit (SAVE - Free Report) , has gained 36.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Spirit reported revenues of $967.32 million in the last reported quarter, representing a year-over-year change of +109.7%. EPS of -$1.60 for the same period compares with -$2.48 a year ago.
Spirit is expected to post a loss of $0.32 per share for the current quarter, representing a year-over-year change of +5.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Spirit has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.