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.
Alaska Air (ALK) Q2 Earnings: Disappointment in Store?
Read MoreHide Full Article
Alaska Air Group, Inc. (ALK - Free Report) is set to release second-quarter 2016 results, before the market opens on Jul 21.
In the last quarter, the company posted a positive 2.11% earnings surprise. Let’s see how things are shaping up for this announcement.
Factors at Play
Alaska Airlines has been struggling to boost growth in the second quarter. The terror attacks have rattled the airline industry with most companies registering last minute cancellation and delayed travel plan requests. Moreover, Alaska Airlines has been facing stiff competition from peers like Delta Air Lines Inc. (DAL - Free Report) and JetBlue. We expect additional details on the Virgin America Inc. with this quarter’s earnings.
Low oil prices are however driving the company’s bottom line. The airline recently reported an increase in traffic and passenger count for the month of June. With new routes on the radar, Alaska Airlines might see an improved top-line performance this quarter.
Our proven model does not conclusively show that Alaska Air is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for the company currently stands at +0.48% as the Most Accurate estimate is pegged at $2.08 while the Zacks Consensus Estimate is lower at $2.07.
Zacks Rank: Alaska Air carries a Zacks Rank #5 (Strong Sell). Please note that we caution against Sell-rated stocks (#4 and 5) going into an earnings announcement as is the case for Alaska Air Group.
Stock to Consider
Here is a stock you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter.
Latam Airlines Group S.A. has an Earnings ESP of over +100% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Alaska Air (ALK) Q2 Earnings: Disappointment in Store?
Alaska Air Group, Inc. (ALK - Free Report) is set to release second-quarter 2016 results, before the market opens on Jul 21.
In the last quarter, the company posted a positive 2.11% earnings surprise. Let’s see how things are shaping up for this announcement.
Factors at Play
Alaska Airlines has been struggling to boost growth in the second quarter. The terror attacks have rattled the airline industry with most companies registering last minute cancellation and delayed travel plan requests. Moreover, Alaska Airlines has been facing stiff competition from peers like Delta Air Lines Inc. (DAL - Free Report) and JetBlue. We expect additional details on the Virgin America Inc. with this quarter’s earnings.
Low oil prices are however driving the company’s bottom line. The airline recently reported an increase in traffic and passenger count for the month of June. With new routes on the radar, Alaska Airlines might see an improved top-line performance this quarter.
ALASKA AIR GRP Price and EPS Surprise
ALASKA AIR GRP Price and EPS Surprise | ALASKA AIR GRP Quote
Earnings Whispers
Our proven model does not conclusively show that Alaska Air is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for the company currently stands at +0.48% as the Most Accurate estimate is pegged at $2.08 while the Zacks Consensus Estimate is lower at $2.07.
Zacks Rank: Alaska Air carries a Zacks Rank #5 (Strong Sell). Please note that we caution against Sell-rated stocks (#4 and 5) going into an earnings announcement as is the case for Alaska Air Group.
Stock to Consider
Here is a stock you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter.
Latam Airlines Group S.A. has an Earnings ESP of over +100% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>