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JetBlue Shares Gain 7.1% on Improved Third-Quarter Outlook
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Shares of JetBlue Airways Corporation (JBLU - Free Report) performed well on the bourse on Sept. 5, 2024, closing the trading session at $5.39 per share, up 7.16% from the previous day's closing. The upside was owing to the improved third-quarter 2024 guidance revealed by the company.
JBLU now anticipates its third-quarter revenues to be down 2.5% to up 1% on a year-over-year basis. This marks an improvement from the previous guidance of a decline in the range of 1.5-5.5%. The upside in revenue performance was owing to the improvement in in-month bookings (especially in the Latin region) and continued progress from the previously announced $300 million worth of revenue initiatives. Additionally, revenue uplift from the re-accommodation of customers affected by other airlines' cancelations due to technology outages in July contributed to JBLU’s top line.
Furthermore, JBLU’s improved operational performance during the summer travel season was aided by its strategy of offering better service as a core pillar of its JetForward strategy. JBLU now expects its third-quarter capacity (measured in available seat miles) to decline in the 3-5% range. This marks an improvement over the prior forecast to decline in the 3-6% band.
Declining expenses (owing to the moderating fuel prices since the start of the third quarter) mark another major positive. JetBlue now anticipates third-quarter 2024 average fuel cost per gallon in the range of $2.70-$2.80 (prior view: $2.82 - $2.97). Lower fuel costs should boost the company’s bottom line, as fuel expenses represent a key input cost for any transportation player.
Non-fuel unit costs benefited from cost-cutting efforts and operational reliability, which were partially offset by weather-related disruption costs in August. As a result, the company has lowered its consolidated operating costs per available seat mile’s (excluding fuel and special items) third-quarter guidance. JBLU now anticipates CASM, excluding fuel and special items, to increase 5-7%, down from the prior expectation of a 6-8% increase.
Capital expenditures are still expected to be roughly $365 million.
CHRW has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 7.33%.
CHRW has an expected earnings growth rate of 22.42% for 2024. The Zacks Consensus Estimate for CHRW 2024 earnings has been revised 11.3% upward over the past 90 days. Shares of CHRW have gained 14.3% so far this year.
WAB has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 11.83%.
The Zacks Consensus Estimate for WAB’s 2024 earnings has been revised 3.3% upward over the past 90 days. WAB has an expected earnings growth rate of 25.34% for 2024. Shares of WAB have gained 23.5% so far this year.
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JetBlue Shares Gain 7.1% on Improved Third-Quarter Outlook
Shares of JetBlue Airways Corporation (JBLU - Free Report) performed well on the bourse on Sept. 5, 2024, closing the trading session at $5.39 per share, up 7.16% from the previous day's closing. The upside was owing to the improved third-quarter 2024 guidance revealed by the company.
JBLU now anticipates its third-quarter revenues to be down 2.5% to up 1% on a year-over-year basis. This marks an improvement from the previous guidance of a decline in the range of 1.5-5.5%. The upside in revenue performance was owing to the improvement in in-month bookings (especially in the Latin region) and continued progress from the previously announced $300 million worth of revenue initiatives. Additionally, revenue uplift from the re-accommodation of customers affected by other airlines' cancelations due to technology outages in July contributed to JBLU’s top line.
Furthermore, JBLU’s improved operational performance during the summer travel season was aided by its strategy of offering better service as a core pillar of its JetForward strategy. JBLU now expects its third-quarter capacity (measured in available seat miles) to decline in the 3-5% range. This marks an improvement over the prior forecast to decline in the 3-6% band.
Declining expenses (owing to the moderating fuel prices since the start of the third quarter) mark another major positive. JetBlue now anticipates third-quarter 2024 average fuel cost per gallon in the range of $2.70-$2.80 (prior view: $2.82 - $2.97). Lower fuel costs should boost the company’s bottom line, as fuel expenses represent a key input cost for any transportation player.
Non-fuel unit costs benefited from cost-cutting efforts and operational reliability, which were partially offset by weather-related disruption costs in August. As a result, the company has lowered its consolidated operating costs per available seat mile’s (excluding fuel and special items) third-quarter guidance. JBLU now anticipates CASM, excluding fuel and special items, to increase 5-7%, down from the prior expectation of a 6-8% increase.
Capital expenditures are still expected to be roughly $365 million.
JBLU’s Zacks Rank
JBLU currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks from the Zacks Transportation sector are C.H. Robinson Worldwide (CHRW - Free Report) and Wabtec Corporation (WAB - Free Report) . Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CHRW has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 7.33%.
CHRW has an expected earnings growth rate of 22.42% for 2024. The Zacks Consensus Estimate for CHRW 2024 earnings has been revised 11.3% upward over the past 90 days. Shares of CHRW have gained 14.3% so far this year.
WAB has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 11.83%.
The Zacks Consensus Estimate for WAB’s 2024 earnings has been revised 3.3% upward over the past 90 days. WAB has an expected earnings growth rate of 25.34% for 2024. Shares of WAB have gained 23.5% so far this year.