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Copa Holdings has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 20.2%.
The Zacks Consensus Estimate for CPA’s soon-to-be-reported quarter’s earnings has been revised downward by 19.2% in the past 60 days to $2.87 per share. Meanwhile,the Zacks Consensus Estimate for revenues is pegged at $841 million, which indicates growth of 4% from the year-ago levels.
Upbeat air travel demand is likely to have boosted CPA’s top line. Passenger revenues, which account for the bulk of the top line, are likely to have increased in the to-be-reported quarter. Our estimate for passenger revenues is pegged at $840 million, up 8.5% compared with the second-quarter 2023 actuals. Meanwhile, estimates for revenues from the cargo and mail segment are pegged at $22 million.
On the contrary, rising operating expenses are likely to have hurt Copa Holdings’bottom line. This surge in operating expenses is primarily driven by the increase in salaries and benefits, exacerbating CPA’s prospects in the to-be-reported quarter. Our estimate for total second-quarter operating expenses has increased 14% year over year.
What Our Model Says
Our proven model predicts an earnings beat for Copa Holdings this time. 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, which is exactly the case here.
CPA has an Earnings ESP of +1.55% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Highlights of Q1
Copa Holdings’ first-quarter 2024 earnings per share of $4.19 surpassed the Zacks Consensus Estimate of $3.27 and improved 5% year over year. Revenues of $893.5 million beat the Zacks Consensus Estimate of $846.2 million and rose 3% year over year due to upbeat passenger revenues.
Passenger revenues (which contributed 96.1% to the top line) increased 3% from the first quarter of 2023 due to capacity increase. Meanwhile, cargo and mail revenues fell 5.8% to $21.91 million due to lower cargo yields. Other operating revenues were $12.83 million, up 28.4% year over year.
Other Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors might want to consider as well, as our model shows that these also have the right combination of elements to beat second-quarter 2024 earnings.
Teekay Tankers (TNK - Free Report) has an Earnings ESP of +1.70% and a Zacks Rank #3. The company is scheduled to report second-quarter 2024 earnings on Aug 1.
TNK has a discouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice, the average miss being 6.3%.
EXPD has a discouraging earnings surprise history, having surpassed the Zacks Consensus Estimate only once in the preceding four quarters and missing thrice, the average miss being 3.44%.
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Is a Beat in Store for Copa Holdings (CPA) in Q2 Earnings?
Copa Holdings (CPA - Free Report) is scheduled to report second-quarter 2024 results on Aug 7 before market open.
Copa Holdings has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 20.2%.
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 CPA’s soon-to-be-reported quarter’s earnings has been revised downward by 19.2% in the past 60 days to $2.87 per share. Meanwhile,the Zacks Consensus Estimate for revenues is pegged at $841 million, which indicates growth of 4% from the year-ago levels.
Upbeat air travel demand is likely to have boosted CPA’s top line. Passenger revenues, which account for the bulk of the top line, are likely to have increased in the to-be-reported quarter. Our estimate for passenger revenues is pegged at $840 million, up 8.5% compared with the second-quarter 2023 actuals. Meanwhile, estimates for revenues from the cargo and mail segment are pegged at $22 million.
On the contrary, rising operating expenses are likely to have hurt Copa Holdings’bottom line. This surge in operating expenses is primarily driven by the increase in salaries and benefits, exacerbating CPA’s prospects in the to-be-reported quarter. Our estimate for total second-quarter operating expenses has increased 14% year over year.
What Our Model Says
Our proven model predicts an earnings beat for Copa Holdings this time. 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, which is exactly the case here.
CPA has an Earnings ESP of +1.55% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Highlights of Q1
Copa Holdings’ first-quarter 2024 earnings per share of $4.19 surpassed the Zacks Consensus Estimate of $3.27 and improved 5% year over year. Revenues of $893.5 million beat the Zacks Consensus Estimate of $846.2 million and rose 3% year over year due to upbeat passenger revenues.
Passenger revenues (which contributed 96.1% to the top line) increased 3% from the first quarter of 2023 due to capacity increase. Meanwhile, cargo and mail revenues fell 5.8% to $21.91 million due to lower cargo yields. Other operating revenues were $12.83 million, up 28.4% year over year.
Other Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors might want to consider as well, as our model shows that these also have the right combination of elements to beat second-quarter 2024 earnings.
Teekay Tankers (TNK - Free Report) has an Earnings ESP of +1.70% and a Zacks Rank #3. The company is scheduled to report second-quarter 2024 earnings on Aug 1.
TNK has a discouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice, the average miss being 6.3%.
Expeditors International of Washington (EXPD - Free Report) has an Earnings ESP of +2.22% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.The company is scheduled to report second-quarter 2024 earnings on Aug 6.
EXPD has a discouraging earnings surprise history, having surpassed the Zacks Consensus Estimate only once in the preceding four quarters and missing thrice, the average miss being 3.44%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.