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GOL Linhas (GOL) Issues Bullish Q2 Forecast, Stock Up
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Shares of the Brazilian carrier GOL Linhas Areas Inteligentes have gained 13.32% to $12.68 on Jul 5, following the bullish projection unveiled by the company for the second quarter of 2017. In fact, shares of this Zacks Rank #3 (Hold) carrier have performed well so far this year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has gained 86.2% on a year-to-date basis, handily outperforming the Zacks categorized Transportation Airline industry's gain of 16.4%.
Q2 View
GOL Linhas expects operating margin (excluding non recurring items) in the band of 1.5% to 2%. This projected range represents a marked improvement from the reading of -8.2% recorded a year ago. Moving ahead, the company expects earnings before interest, tax, depreciation and amortization (EBITDA) margin in the band of 6% to 7%.
Additionally, the carrier projects ancillary revenue (cargo and other) in the band of 14.5% to 15% of net revenue. On the back of its capacity discipline and revenue management plans, the company also anticipates passenger unit revenue (PRASK) to grow in the band of 7.5% to 8% on a year-over-year basis.
Meanwhile, unit revenue (RASK) is expected to increase in the band of 8.5% to 9% in the second quarter. On the contrary, GOL Linhas forecasts capacity (available seat kilometres) to decline 3.2% on a year-over-year basis. Also, non-fuel unit costs are projected to decline approximately 4%. The carrier further said that as part of its efforts to bring down its debt levels, it has reduced the same by approximately R$100 million in the quarter.
We note that GOL Linhas, which competes with the likes of Copa Holdings (CPA - Free Report) , LATAM Airlines Group (LTM - Free Report) and Azul SA (AZUL - Free Report) in the Latin American space had recently issued an improved outlook for full-year 2017 as well.
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GOL Linhas (GOL) Issues Bullish Q2 Forecast, Stock Up
Shares of the Brazilian carrier GOL Linhas Areas Inteligentes have gained 13.32% to $12.68 on Jul 5, following the bullish projection unveiled by the company for the second quarter of 2017. In fact, shares of this Zacks Rank #3 (Hold) carrier have performed well so far this year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has gained 86.2% on a year-to-date basis, handily outperforming the Zacks categorized Transportation Airline industry's gain of 16.4%.
Q2 View
GOL Linhas expects operating margin (excluding non recurring items) in the band of 1.5% to 2%. This projected range represents a marked improvement from the reading of -8.2% recorded a year ago. Moving ahead, the company expects earnings before interest, tax, depreciation and amortization (EBITDA) margin in the band of 6% to 7%.
Additionally, the carrier projects ancillary revenue (cargo and other) in the band of 14.5% to 15% of net revenue. On the back of its capacity discipline and revenue management plans, the company also anticipates passenger unit revenue (PRASK) to grow in the band of 7.5% to 8% on a year-over-year basis.
Meanwhile, unit revenue (RASK) is expected to increase in the band of 8.5% to 9% in the second quarter. On the contrary, GOL Linhas forecasts capacity (available seat kilometres) to decline 3.2% on a year-over-year basis. Also, non-fuel unit costs are projected to decline approximately 4%. The carrier further said that as part of its efforts to bring down its debt levels, it has reduced the same by approximately R$100 million in the quarter.
We note that GOL Linhas, which competes with the likes of Copa Holdings (CPA - Free Report) , LATAM Airlines Group (LTM - Free Report) and Azul SA (AZUL - Free Report) in the Latin American space had recently issued an improved outlook for full-year 2017 as well.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2%, respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>