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Copa has an impressive earning surprise history, having outperformed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 33.4%.
Let’s check out the factors that are expected to have shaped the first-quarter performance of CPA.
The Zacks Consensus Estimate for earnings is currently pegged at $3.03 per share, indicating a 100% improvement from the year-ago reported figure. Our estimate also indicates a surge of more than 200% on a year-over-year basis. Improved air-travel demand is expected to have aided the top line of Copa Holdings. The Zacks Consensus Estimate for revenues is currently pegged at $821.6 million, implying an increase of 43.7% from the year-ago reported figure.
The expected growth in the top line can be attributed to improved passenger volumes. Riding on the buoyant air-travel demand, traffic (measured in revenue passenger miles) is expected to rise around 25% year over year, per the Zacks Consensus Estimate.
The consensus estimate indicates capacity (measured in available seat miles) to grow 18.4% on a year-over-year basis. Moreover, the estimated increases for load factor and passenger revenue per available seat miles are 4.9% and 24% year over year, respectively.
On the contrary, per the Zacks Consensus Estimate, cost per available seat mile is anticipated to be up by 6.4% considering the high jet fuel prices, and increasing selling and distribution costs. Average price per fuel gallon is estimated to increase 17.8% year over year to $3.38.
What Our Model Says
Our proven model predicts an earnings beat for Copa Holdings 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Copa Holdings' reported fourth-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings of $4.49 per share beat the Zacks Consensus Estimate of $4.09 and surge more than 100% year over year. Revenues of $890.6 million outpaced the Zacks Consensus Estimate of $883.8 million and improved year over year on the back of passenger revenues.
Q1 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), respectively. A decline of 17% in revenue per load in Truckload (JBT) also added to the woes. Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%. JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel price and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago as air-travel demand was not so buoyant back then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. However, driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
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Will Copa Holdings (CPA) Surpass Earnings Estimates in Q1?
Copa Holdings, S.A. (CPA - Free Report) is scheduled to report first-quarter 2023 results on May 10, after market close.
Copa has an impressive earning surprise history, having outperformed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 33.4%.
Let’s check out the factors that are expected to have shaped the first-quarter performance of CPA.
Copa Holdings, S.A. Price and EPS Surprise
Copa Holdings, S.A. price-eps-surprise | Copa Holdings, S.A. Quote
The Zacks Consensus Estimate for earnings is currently pegged at $3.03 per share, indicating a 100% improvement from the year-ago reported figure. Our estimate also indicates a surge of more than 200% on a year-over-year basis.
Improved air-travel demand is expected to have aided the top line of Copa Holdings. The Zacks Consensus Estimate for revenues is currently pegged at $821.6 million, implying an increase of 43.7% from the year-ago reported figure.
The expected growth in the top line can be attributed to improved passenger volumes. Riding on the buoyant air-travel demand, traffic (measured in revenue passenger miles) is expected to rise around 25% year over year, per the Zacks Consensus Estimate.
The consensus estimate indicates capacity (measured in available seat miles) to grow 18.4% on a year-over-year basis. Moreover, the estimated increases for load factor and passenger revenue per available seat miles are 4.9% and 24% year over year, respectively.
On the contrary, per the Zacks Consensus Estimate, cost per available seat mile is anticipated to be up by 6.4% considering the high jet fuel prices, and increasing selling and distribution costs. Average price per fuel gallon is estimated to increase 17.8% year over year to $3.38.
What Our Model Says
Our proven model predicts an earnings beat for Copa Holdings 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Copa Holdings has an Earnings ESP of +19.57% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Highlights of Q4
Copa Holdings' reported fourth-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings of $4.49 per share beat the Zacks Consensus Estimate of $4.09 and surge more than 100% year over year. Revenues of $890.6 million outpaced the Zacks Consensus Estimate of $883.8 million and improved year over year on the back of passenger revenues.
Q1 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), respectively. A decline of 17% in revenue per load in Truckload (JBT) also added to the woes. Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%. JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel price and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago as air-travel demand was not so buoyant back then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. However, driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.