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AZUL's Q4 Earnings Coming Up: What's in the Offing for the Stock?

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AZUL (AZUL - Free Report) is scheduled to report fourth-quarter 2024 results on Feb. 24, before market open.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

AZUL has a discouraging earnings surprise history, having missed the Zacks Consensus Estimate in each of the trailing four quarters. The average miss is 100.8%.

AZUL Price and EPS Surprise

AZUL Price and EPS Surprise

AZUL price-eps-surprise | AZUL Quote

The Zacks Consensus Estimate for AZUL’s earnings for soon-to-be-reported quarter has remained flat at 12 cents per share over the past 60 days. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $957.6 million, which indicates a fall of 5.7% year over year.

High operating expenses are likely to have hurt the company’s bottom-line performance in the to-be-reported quarter. Per our estimate, the total operating expenses are expected to increase 2% year over year. High labor and fuel costs are likely to have led to an uptick in operating costs.

On the contrary, the upbeat air travel demand is expected to have contributed to the company’s prospects in the December-end quarter.

What Our Model Says About AZUL Stock

Our proven model does not conclusively predict an earnings beat for AZUL 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 not the case here.

AZUL has an Earnings ESP of -59.18% 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 AZUL's Q3 Results

Azul incurred a loss of 32 cents per share in the third quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 10 cents.

Total revenues of $925.1 million lagged the Zacks Consensus Estimate of $953.2 million. AZUL’s third-quarter 2024 revenues benefit from a healthy demand environment and robust ancillary revenues.

A Stock to Consider

Here is a stock from the broader Zacks Transportation sector that investors might want to consider, as our model shows that this stock has the right combination of elements to beat fourth-quarter 2024 earnings.

Golar LNG Limited (GLNG - Free Report) has an Earnings ESP of +11.58% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to report fourth-quarter 2024 earnings results on Feb. 27.

GLNG has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate thrice in the preceding four quarters and missing once. The average beat is 30.2%.

Q4 Performances of Other Transportation Companies

Delta Air Lines (DAL - Free Report) reported fourth-quarter 2024 earnings (excluding 56 cents from non-recurring items) of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.76. Earnings increased 44.5% on a year-over-year basis due to low fuel costs.

DAL’s revenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and increased 9.4% on a year-over-year basis, driven by strong holiday travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.44 billion, up 5.7% year over year. Passenger revenues, which accounted for 82.4% of total revenues, increased 5% year over year at $12.82 billion.

J.B. Hunt Transport Services (JBHT - Free Report) reported fourth-quarter 2024 earnings per share of $1.53, which fell short of the Zacks Consensus Estimate of $1.62. The bottom line increased 4.1% on a year-over-year basis.

JBHT’s total operating revenues of $3.15 billion narrowly beat the Zacks Consensus Estimate of $3.13 billion but declined 4.8% year over year. The decline was mainly due to lower fuel surcharge revenues and yield pressure in its Intermodal segment.

JBHT’s fourth-quarter 2024 operating revenues of $2.78 billion, excluding fuel surcharge revenues, decreased 2% from the year-ago reported quarter. Total operating income for the reported quarter increased 2% year over year to $207 million.

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