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ALK has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 9%.
Let’s check out how things are shaping up for Alaska Air this earnings season.
The Zacks Consensus Estimate for revenues is pegged at $2.20 billion, indicating 31.02% growth year over year. The top line is likely to have been aided by continued recovery in air-travel demand and an improvement in passenger revenues.
On the back of upbeat air-travel demand and favorable pricing, ALK expects first-quarter 2023 total revenues to increase 29-32% from first-quarter 2022 actuals. Capacity is also projected to increase in the 11-14% band.
Meanwhile, with rising oil prices, fuel price per gallon is now expected in the range of $3.35-$3.45 (earlier forecast: $3.15-$3.35 range). Escalating operating expenses, primarily due to fuel prices, continue to bother ALK’s bottom line. Our estimate is pegged at a loss of 50 cents per share.
What Our Model Says
Our proven 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. 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.
Alaska Air has an Earnings ESP of 0.00% and a Zacks Rank #3.
Highlights of Q4
The company's fourth-quarter 2022 earnings of 92 cents per share beat the Zacks Consensus Estimate of 90 cents and surged more than 100% year over year. Operating revenues jumped 31% year over year to $2,479 million but missed the Zacks Consensus Estimate of $2,504.4 million. Passenger revenues (accounting for 91.3% of the top line) rose 32% owing to continued recovery in air-travel demand.
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 earnings this season.
The company delivered a trailing four-quarter earnings surprise of 3.5%, on average. The Zacks Consensus Estimate for CNI’s first-quarter 2023 earnings has surged 18.3% year over year.
Kirby Corporation (KEX - Free Report) has an Earnings ESP of +0.52% and carries a Zacks Rank #3. It will release first-quarter 2023 results on Apr 27.
The company delivered a trailing four-quarter earnings surprise of 3.8%, on average. The Zacks Consensus Estimate for KEX’s first-quarter 2023 earnings has surged more than 100% year over year.
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What's in the Cards for Alaska Air (ALK) in Q1 Earnings?
Alaska Air Group, Inc. (ALK - Free Report) is scheduled to report first-quarter 2023 results on Apr 20, before market open.
ALK has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 9%.
Let’s check out 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
Q1 Expectations
The Zacks Consensus Estimate for revenues is pegged at $2.20 billion, indicating 31.02% growth year over year. The top line is likely to have been aided by continued recovery in air-travel demand and an improvement in passenger revenues.
On the back of upbeat air-travel demand and favorable pricing, ALK expects first-quarter 2023 total revenues to increase 29-32% from first-quarter 2022 actuals. Capacity is also projected to increase in the 11-14% band.
Meanwhile, with rising oil prices, fuel price per gallon is now expected in the range of $3.35-$3.45 (earlier forecast: $3.15-$3.35 range). Escalating operating expenses, primarily due to fuel prices, continue to bother ALK’s bottom line. Our estimate is pegged at a loss of 50 cents per share.
What Our Model Says
Our proven 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. 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.
Alaska Air has an Earnings ESP of 0.00% and a Zacks Rank #3.
Highlights of Q4
The company's fourth-quarter 2022 earnings of 92 cents per share beat the Zacks Consensus Estimate of 90 cents and surged more than 100% year over year. Operating revenues jumped 31% year over year to $2,479 million but missed the Zacks Consensus Estimate of $2,504.4 million. Passenger revenues (accounting for 91.3% of the top line) rose 32% owing to continued recovery in air-travel demand.
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 earnings this season.
Canadian National Railway Company (CNI - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #3. It will release first-quarter 2023 results on Apr 24. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company delivered a trailing four-quarter earnings surprise of 3.5%, on average. The Zacks Consensus Estimate for CNI’s first-quarter 2023 earnings has surged 18.3% year over year.
Kirby Corporation (KEX - Free Report) has an Earnings ESP of +0.52% and carries a Zacks Rank #3. It will release first-quarter 2023 results on Apr 27.
The company delivered a trailing four-quarter earnings surprise of 3.8%, on average. The Zacks Consensus Estimate for KEX’s first-quarter 2023 earnings has surged more than 100% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.