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Why Is JetBlue (JBLU) Down 24% Since Last Earnings Report?
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It has been about a month since the last earnings report for JetBlue Airways (JBLU - Free Report) . Shares have lost about 24% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is JetBlue due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Q2 Earnings Beat at JetBlue
JetBlue's second-quarter 2024 earnings (excluding one cent per share from non-recurring items) of 8 cents per share beat the Zacks Consensus Estimate of a loss of 13 cents. In the year-ago quarter, JBLU reported earnings of 45 cents. Operating revenues of $2.43 billion beat the Zacks Consensus Estimate of $2.39 billion. However, the top line decreased 7% year over year.
Passenger revenues, accounting for the bulk of the top line (93.4%), declined to $2.26 billion from $2.46 billion a year ago. Passenger revenues were hurt due to air traffic control issues in the Northeast. Other revenues rose 9.1% to $163 million .
Other Q2 Details
All comparisons have been presented on a year-over-year basis unless mentioned otherwise.
Revenue per available seat mile (RASM: a key measure of unit revenues) declined 4.4% to 14.38 cents. Passenger revenue per available seat mile fell 5.4% to 13.41 cents. The average fare at JetBlue decreased 0.5% to $218.27. The yield per passenger mile dipped 4%.
Consolidated traffic (measured in revenue passenger miles) declined 4.1%. Capacity (measured in available seat miles) dropped 2.7%. Consolidated load factor (percentage of seats filled by passengers) contracted 1.3 pts. to 84% as the traffic decline was more than the capacity reduction. Total operating costs (on a reported basis) remained flat at $2.4 billion. Expenses on salaries, wages and benefits increased marginally by 1.6% year over year. The average fuel price per gallon (including related taxes) was $2.87, up 5.1% year over year. JBLU’s operating expenses per available seat mile (CASM) increased 2.6% year over year. Excluding fuel, CASM rose 3.7% to $10.24 cents.
JetBlue exited the quarter with cash and cash equivalents of $1.31 billion compared with $1.16 billion at the end of 2023. The total debt at the end of the June quarter was $5.37 billion compared with $4.72 billion in 2023.
Bleak Outlook
While providing guidance for the third quarter of 2024, management stated that all comparisons had been made with respect to the third-quarter 2023 figures.
Capacity is anticipated to decline in the 3-6% band. CASM, excluding fuel and special items, is predicted to climb 6-8%. Capital expenditures are expected to be roughly $365 million. Total revenues are forecast to tumble in the range of 1.5-5.5%. The average fuel cost per gallon is estimated between $2.82 and $2.97.
For full-year 2024, capacity is envisioned to be down in the 2.5-5% band. CASM, excluding fuel and special items, is predicted to be up in the 6.5-8.5% band. Capital expenditures are expected to be roughly $1.6 billion. Total revenues are forecast to tumble in the range of 4-6%. The average fuel cost per gallon is estimated between $2.80 and $3.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -101.94% due to these changes.
VGM Scores
At this time, JetBlue has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, JetBlue has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
JetBlue is part of the Zacks Transportation - Airline industry. Over the past month, Ryanair (RYAAY - Free Report) , a stock from the same industry, has gained 7.4%. The company reported its results for the quarter ended June 2024 more than a month ago.
Ryanair reported revenues of $3.9 billion in the last reported quarter, representing a year-over-year change of -1.8%. EPS of $1.69 for the same period compares with $3.15 a year ago.
For the current quarter, Ryanair is expected to post earnings of $6.78 per share, indicating a change of -6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Ryanair has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Why Is JetBlue (JBLU) Down 24% Since Last Earnings Report?
It has been about a month since the last earnings report for JetBlue Airways (JBLU - Free Report) . Shares have lost about 24% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is JetBlue due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Q2 Earnings Beat at JetBlue
JetBlue's second-quarter 2024 earnings (excluding one cent per share from non-recurring items) of 8 cents per share beat the Zacks Consensus Estimate of a loss of 13 cents. In the year-ago quarter, JBLU reported earnings of 45 cents. Operating revenues of $2.43 billion beat the Zacks Consensus Estimate of $2.39 billion. However, the top line decreased 7% year over year.
Passenger revenues, accounting for the bulk of the top line (93.4%), declined to $2.26 billion from $2.46 billion a year ago. Passenger revenues were hurt due to air traffic control issues in the Northeast. Other revenues rose 9.1% to $163 million .
Other Q2 Details
All comparisons have been presented on a year-over-year basis unless mentioned otherwise.
Revenue per available seat mile (RASM: a key measure of unit revenues) declined 4.4% to 14.38 cents. Passenger revenue per available seat mile fell 5.4% to 13.41 cents. The average fare at JetBlue decreased 0.5% to $218.27. The yield per passenger mile dipped 4%.
Consolidated traffic (measured in revenue passenger miles) declined 4.1%. Capacity (measured in available seat miles) dropped 2.7%. Consolidated load factor (percentage of seats filled by passengers) contracted 1.3 pts. to 84% as the traffic decline was more than the capacity reduction. Total operating costs (on a reported basis) remained flat at $2.4 billion. Expenses on salaries, wages and benefits increased marginally by 1.6% year over year. The average fuel price per gallon (including related taxes) was $2.87, up 5.1% year over year. JBLU’s operating expenses per available seat mile (CASM) increased 2.6% year over year. Excluding fuel, CASM rose 3.7% to $10.24 cents.
JetBlue exited the quarter with cash and cash equivalents of $1.31 billion compared with $1.16 billion at the end of 2023. The total debt at the end of the June quarter was $5.37 billion compared with $4.72 billion in 2023.
Bleak Outlook
While providing guidance for the third quarter of 2024, management stated that all comparisons had been made with respect to the third-quarter 2023 figures.
Capacity is anticipated to decline in the 3-6% band. CASM, excluding fuel and special items, is predicted to climb 6-8%. Capital expenditures are expected to be roughly $365 million. Total revenues are forecast to tumble in the range of 1.5-5.5%. The average fuel cost per gallon is estimated between $2.82 and $2.97.
For full-year 2024, capacity is envisioned to be down in the 2.5-5% band. CASM, excluding fuel and special items, is predicted to be up in the 6.5-8.5% band. Capital expenditures are expected to be roughly $1.6 billion. Total revenues are forecast to tumble in the range of 4-6%. The average fuel cost per gallon is estimated between $2.80 and $3.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -101.94% due to these changes.
VGM Scores
At this time, JetBlue has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, JetBlue has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
JetBlue is part of the Zacks Transportation - Airline industry. Over the past month, Ryanair (RYAAY - Free Report) , a stock from the same industry, has gained 7.4%. The company reported its results for the quarter ended June 2024 more than a month ago.
Ryanair reported revenues of $3.9 billion in the last reported quarter, representing a year-over-year change of -1.8%. EPS of $1.69 for the same period compares with $3.15 a year ago.
For the current quarter, Ryanair is expected to post earnings of $6.78 per share, indicating a change of -6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Ryanair has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.