We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Consensus Estimate for CPA’s fourth-quarter 2023 earnings has been revised 0.26% upward over the past 60 days to $3.88 per share. The company has surpassed the consensus mark in each of the preceding four quarters, the average beat being 16.81%.
Let us analyze the factors that are likely to have impacted the company’s quarterly performance in the quarter under review.
We expect the rise in air travel demand, especially on the domestic front, to have boosted CPA’s top-line performance. Passenger revenues, which account for the bulk of the top line, are likely to have driven total revenues. Our estimate for passenger revenues is $852.5 million, indicating a 2.3% sequential increase.
The rise in air travel demand is likely to cause traffic (measured in revenue passenger miles) to rise 10.7% year over year, per our estimate. CPA is expanding its capacity to meet the surge in demand. We estimate year-over-year capacity (measured in available seat miles) growth of 9.7%.
High fuel costs are anticipated to have affected the company’s bottom-line performance in the quarter under review. Even though oil prices have come down from the highs witnessed earlier, the same has still been high. We expect the average price per gallon of fuel to be $3.06, above the $3 per gallon reported in third-quarter 2023.
What our model says
Our proven model does not predict an earnings beat for Copa Holdings. 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. However, that is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Copa Holdings’ third-quarter 2023 earnings of $4.39 per share exceeded the Zacks Consensus Estimate of $3.61. Passenger revenues of $833.3 million beat the Zacks Consensus Estimate of $816.5 million, marking a 7.6% year-over-year rise.
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 time around.
ArcBest (ARCB - Free Report) currently has an Earnings ESP of +1.37% and a Zacks Rank #3. ARCB will report its fourth-quarter 2023 earnings results on Feb 6.
The surge in e-commerce activities, automation and inclination toward sustainability will likely provide a positive impetus to ARCB’s fourth-quarter results.
TFI International (TFII - Free Report) currently has an Earnings ESP of +1.61% and carries a Zacks Rank #3. TFII is set to report its fourth-quarter 2023 earnings results on Feb 8.
The rapid expansion of TFII’s operations in North America should aid its results in the quarter under evaluation.
Image: Bigstock
Copa Holdings (CPA) Gears up for Q4 Earnings: What's in Store?
Copa Holdings (CPA - Free Report) is scheduled to report its fourth-quarter 2023 results on Feb 7, after market close.
The Zacks Consensus Estimate for CPA’s fourth-quarter 2023 earnings has been revised 0.26% upward over the past 60 days to $3.88 per share. The company has surpassed the consensus mark in each of the preceding four quarters, the average beat being 16.81%.
Copa Holdings, S.A. Price and EPS Surprise
Copa Holdings, S.A. price-eps-surprise | Copa Holdings, S.A. Quote
Let us analyze the factors that are likely to have impacted the company’s quarterly performance in the quarter under review.
We expect the rise in air travel demand, especially on the domestic front, to have boosted CPA’s top-line performance. Passenger revenues, which account for the bulk of the top line, are likely to have driven total revenues. Our estimate for passenger revenues is $852.5 million, indicating a 2.3% sequential increase.
The rise in air travel demand is likely to cause traffic (measured in revenue passenger miles) to rise 10.7% year over year, per our estimate. CPA is expanding its capacity to meet the surge in demand. We estimate year-over-year capacity (measured in available seat miles) growth of 9.7%.
High fuel costs are anticipated to have affected the company’s bottom-line performance in the quarter under review. Even though oil prices have come down from the highs witnessed earlier, the same has still been high. We expect the average price per gallon of fuel to be $3.06, above the $3 per gallon reported in third-quarter 2023.
What our model says
Our proven model does not predict an earnings beat for Copa Holdings. 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. However, that is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CPA has an Earnings ESP of -2.00%. While the Most Accurate Estimate is pegged at $3.80, the Zacks Consensus Estimate is pinned at $3.88. The company currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Highlights of Q3
Copa Holdings’ third-quarter 2023 earnings of $4.39 per share exceeded the Zacks Consensus Estimate of $3.61. Passenger revenues of $833.3 million beat the Zacks Consensus Estimate of $816.5 million, marking a 7.6% year-over-year rise.
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 time around.
ArcBest (ARCB - Free Report) currently has an Earnings ESP of +1.37% and a Zacks Rank #3. ARCB will report its fourth-quarter 2023 earnings results on Feb 6.
The surge in e-commerce activities, automation and inclination toward sustainability will likely provide a positive impetus to ARCB’s fourth-quarter results.
TFI International (TFII - Free Report) currently has an Earnings ESP of +1.61% and carries a Zacks Rank #3. TFII is set to report its fourth-quarter 2023 earnings results on Feb 8.
The rapid expansion of TFII’s operations in North America should aid its results in the quarter under evaluation.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.