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The Zacks Consensus Estimate for AAL’s third-quarter 2022 earnings has been revised upward by 10% in the past 90 days. The company also has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters, the average beat being 2.9%.
American Airlines Group Inc. Price and EPS Surprise
Let’s see how things are shaping up for American Airlines this earnings season.
Q3 Expectations
The Zacks Consensus Estimate for American Airlines’ third-quarter 2022 revenues is pegged at $13.23 billion, indicating 47.6% growth year over year. The top line is likely to have been aided by a solid recovery of air-travel demand and an improvement in passenger revenues.
Moreover, AAL’s bullish top-line guidance is also encouraging. Total revenues in the third quarter of 2022 are anticipated to be roughly 10-12% higher than the level recorded in third-quarter 2019. Management expects TRASM to be 20-24% higher than third-quarter 2019 actuals.
On the flip side, an increase in oil prices continues to bother AAL’s bottom line. The fuel cost per gallon in third-quarter 2022 is expected in the $3.73-$3.78 band. The Zacks Consensus Estimate for average fuel price per gallon (including related taxes) is pegged at $3.85, indicating growth of 85.9% from the year-ago reported figure.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for American Airlines 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
American Airlines has an Earnings ESP of -12.16% and a Zacks Rank #3.
Highlights of Q2
American Airlines’ second-quarter 2022 earnings (excluding 8 cents from non-recurring items) of 76 cents per share fell short of the Zacks Consensus Estimate of 79 cents. Escalated operating expenses induced the earnings miss. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario.
Operating revenues of $13,422 million skyrocketed 79.5% year over year and surpassed the Zacks Consensus Estimate of $13,409.8 million.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on third-quarter 2022 earnings:
Canadian National has an expected earnings growth rate of 20.7% for the current year. CNI delivered a trailing four-quarter earnings surprise of 6.7%, on average.
Canadian National has a long-term earnings growth rate of 11.4%.
Canadian Pacific Railway Limited (CP - Free Report) has an Earnings ESP of +3.81% and a Zacks Rank #3. CP will release results on Oct 26.
Canadian Pacific has an expected earnings growth rate of 12% for the current year.
Canadian Pacific has a long-term earnings growth rate of 9.89%.
United Airlines (UAL - Free Report) has an Earnings ESP of +5.29% and a Zacks Rank #3. UAL will release results on Oct 18.
UAL has an expected earnings growth rate of 103.3% for the current year. UAL delivered a trailing four-quarter earnings surprise of 10.53%, on average.
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What's in the Cards for American Airlines (AAL) in Q3 Earnings?
American Airlines (AAL - Free Report) is scheduled to report third-quarter 2022 results on Oct 20, before market open.
The Zacks Consensus Estimate for AAL’s third-quarter 2022 earnings has been revised upward by 10% in the past 90 days. The company also has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters, the average beat being 2.9%.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Let’s see how things are shaping up for American Airlines this earnings season.
Q3 Expectations
The Zacks Consensus Estimate for American Airlines’ third-quarter 2022 revenues is pegged at $13.23 billion, indicating 47.6% growth year over year. The top line is likely to have been aided by a solid recovery of air-travel demand and an improvement in passenger revenues.
Moreover, AAL’s bullish top-line guidance is also encouraging. Total revenues in the third quarter of 2022 are anticipated to be roughly 10-12% higher than the level recorded in third-quarter 2019. Management expects TRASM to be 20-24% higher than third-quarter 2019 actuals.
On the flip side, an increase in oil prices continues to bother AAL’s bottom line. The fuel cost per gallon in third-quarter 2022 is expected in the $3.73-$3.78 band. The Zacks Consensus Estimate for average fuel price per gallon (including related taxes) is pegged at $3.85, indicating growth of 85.9% from the year-ago reported figure.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for American Airlines 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
American Airlines has an Earnings ESP of -12.16% and a Zacks Rank #3.
Highlights of Q2
American Airlines’ second-quarter 2022 earnings (excluding 8 cents from non-recurring items) of 76 cents per share fell short of the Zacks Consensus Estimate of 79 cents. Escalated operating expenses induced the earnings miss. In the year-ago quarter, AAL incurred a loss of $1.69 per share when air-travel demand was not as buoyant as in the current scenario.
Operating revenues of $13,422 million skyrocketed 79.5% year over year and surpassed the Zacks Consensus Estimate of $13,409.8 million.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on third-quarter 2022 earnings:
Canadian National Railway Company (CNI - Free Report) has an Earnings ESP of +0.74% and a Zacks Rank #3. CNI will release results on Oct 25. You can see the complete list of today’s Zacks #1 Rank stocks here.
Canadian National has an expected earnings growth rate of 20.7% for the current year. CNI delivered a trailing four-quarter earnings surprise of 6.7%, on average.
Canadian National has a long-term earnings growth rate of 11.4%.
Canadian Pacific Railway Limited (CP - Free Report) has an Earnings ESP of +3.81% and a Zacks Rank #3. CP will release results on Oct 26.
Canadian Pacific has an expected earnings growth rate of 12% for the current year.
Canadian Pacific has a long-term earnings growth rate of 9.89%.
United Airlines (UAL - Free Report) has an Earnings ESP of +5.29% and a Zacks Rank #3. UAL will release results on Oct 18.
UAL has an expected earnings growth rate of 103.3% for the current year. UAL delivered a trailing four-quarter earnings surprise of 10.53%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.