Back to top

Image: Bigstock

Gol Linhas (GOL) Anticipates Wider-Than-Expected Loss in Q2 View

Read MoreHide Full Article

Gol Linhas Aereas Inteligentes S.A. provided its expectations for the second quarter of 2022.

For the second quarter of 2022, Gol Linhas anticipates EBITDA margin to be approximately 10% while it expects EBIT margin to be 0%. GOL estimates average fuel price per liter to be R$ 6.10.

The company anticipates loss per share of 75 cents for the second quarter. The Zacks Consensus Estimate for the same is pegged at a loss of 48 cents per share. The unfavorable forecast is mainly due to high fuel costs. Fuel unit costs are anticipated to grow almost 73% year over year, backed by an 80% increase in the average jet fuel price, partially offset by a reduction of nearly 6% in fuel consumption per flight hour due to the higher number of 737-MAXs in the fleet.

Passenger unit revenues for the to-be-reported quarter are expected to increase almost 50% year over year, on the back of solid recovery in corporate travel on GOL's domestic and regional networks, and the return of leisure travel on the company's international network. Total unit revenues are anticipated to increase nearly 40% year over year.

Non-fuel unit costs are anticipated to decrease nearly 40% year over year, owing to the increase in productivity (ASKs, aircraft utilization and operating efficiency) and appreciation of the Brazilian Real versus the U.S. dollar.

The upbeat in travel demand should boost revenues for this Zacks Rank #4 (Sell) carrier. Notably, shares of Gol Linhas have lost 54% year to date compared with 22.8% loss of the industry it belongs to.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks in the broader Zacks Transportation sector that investors can consider are Kirby (KEX - Free Report) , C.H. Robinson Worldwide (CHRW - Free Report) and Diana Shipping Inc. ((DSX - Free Report) ), each carrying a Zacks Rank #2 (Buy). You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Kirby has an expected earnings growth rate of 282.14% for the current year. KEX delivered a trailing four-quarter earnings surprise of 7.7%, on average.

KEX has a long-term earnings growth rate of 12%.

C.H. Robinson has an expected earnings growth rate of 15.9% for the current year. CHRW delivered a trailing four-quarter earnings surprise of 17.1%, on average.

C.H. Robinson has a long-term earnings growth rate of 9%. Shares of CHRW have gained 8.8% over the past year.

Diana has an expected earnings growth rate of 265.1% for the current year. The Zacks Consensus Estimate for DSX’s current-year earnings has improved 5.4% over the past 90 days.

Shares of DSX have gained 5.2% over the past year.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


C.H. Robinson Worldwide, Inc. (CHRW) - free report >>

Diana Shipping inc. (DSX) - free report >>

Kirby Corporation (KEX) - free report >>

Published in