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LATAM Airlines (LTM) Q1 Loss Wider Than Expected Amid Coronavirus
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LATAM Airlines Group (LTM - Free Report) incurred a loss (excluding $2.85 from non-recurring items) of 65 cents per share in the first quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 15 cents. The loss amount, which widened year over year, reflects the impact of coronavirus in the form of a goodwill-impairment loss of $1.73 billion.
Total revenues from passenger and cargo operations declined 6.8% year over year to $2,266 million and fell short of the Zacks Consensus Estimate of $2,347 million. The deterioration was due to a 7.1% fall in passenger revenues, which accounted for 85.6% of the top line. Passenger revenues declined due to reduced capacity (primarily in March) as a result of coronavirus-induced travel demand slump.
During the quarter, LATAM Airlines carried 17.65 million passengers, down 2.9% year over year. Passenger numbers declined in both domestic and international markets. Cargo revenues decreased 4.2% in the quarter with cargo unit revenues slipping 3.2% and cargo capacity falling 1.1%.
LATAM Airlines Group S.A. Price, Consensus and EPS Surprise
Total operating expenses decreased 7.6% year over year with fuel costs declining 12.6% due to 11.1% reduction in fuel consumption. Lower capacity and devaluation of currencies also lowered operating costs. Excluding fuel costs, cost per available seat kilometer (CASK) inched up 1.2% due to drop in March capacity. Load factor (% of seats filled by passengers) decreased 310 basis points to 81% as consolidated traffic declined (10.1%) more than capacity contraction (6.6%). Consolidated passenger unit revenue (RASK) dipped 0.6% year over year.
Meanwhile, expenses on wages and benefits decreased 14.7% owing to depreciation of local currencies. The carrier exited the first quarter with cash and cash equivalents of $1.51 billion compared with $1.12 billion at the end of the year-ago period. LATAM Airlines, carrying a Zacks Rank #4 (Sell), had total financial debt of $7.58 billion at the end of the first quarter compared with $7.19 billion at the end of the year-ago period.
Performance of Other Airlines Stocks
Gol Linhas Aereas Inteligentes’ earnings of 20 cents per share (excluding $3.08 from non-recurring items) in first-quarter 2020 increased year over year on cost-saving initiatives. Net operating revenues of $710.9 million missed the Zacks Consensus Estimate of $929.8 million and declined year over year. The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Copa Holdings (CPA - Free Report) , carrying a Zacks Rank #3 (Hold), reported earnings of $1.75 per share in the first quarter, beating the Zacks Consensus Estimate by 19 cents. The bottom line fell 17.1% year over year primarily due to lower revenues. Quarterly revenues declined 11.4% to $595.5 million but beat the Zacks Consensus Estimate of $592.8 million.
Azul (AZUL - Free Report) , carrying a Zacks Rank #3, incurred a loss of $1.63 per share on an adjusted basis in the first quarter, wider than the Zacks Consensus Estimate of a loss of 50 cents. In the year-ago quarter, the company reported adjusted earnings of 49 cents per share. Total revenues of $633 million surpassed the Zacks Consensus Estimate of $613 million.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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LATAM Airlines (LTM) Q1 Loss Wider Than Expected Amid Coronavirus
LATAM Airlines Group (LTM - Free Report) incurred a loss (excluding $2.85 from non-recurring items) of 65 cents per share in the first quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 15 cents. The loss amount, which widened year over year, reflects the impact of coronavirus in the form of a goodwill-impairment loss of $1.73 billion.
Total revenues from passenger and cargo operations declined 6.8% year over year to $2,266 million and fell short of the Zacks Consensus Estimate of $2,347 million. The deterioration was due to a 7.1% fall in passenger revenues, which accounted for 85.6% of the top line. Passenger revenues declined due to reduced capacity (primarily in March) as a result of coronavirus-induced travel demand slump.
During the quarter, LATAM Airlines carried 17.65 million passengers, down 2.9% year over year. Passenger numbers declined in both domestic and international markets. Cargo revenues decreased 4.2% in the quarter with cargo unit revenues slipping 3.2% and cargo capacity falling 1.1%.
LATAM Airlines Group S.A. Price, Consensus and EPS Surprise
LATAM Airlines Group S.A. price-consensus-eps-surprise-chart | LATAM Airlines Group S.A. Quote
Total operating expenses decreased 7.6% year over year with fuel costs declining 12.6% due to 11.1% reduction in fuel consumption. Lower capacity and devaluation of currencies also lowered operating costs. Excluding fuel costs, cost per available seat kilometer (CASK) inched up 1.2% due to drop in March capacity. Load factor (% of seats filled by passengers) decreased 310 basis points to 81% as consolidated traffic declined (10.1%) more than capacity contraction (6.6%). Consolidated passenger unit revenue (RASK) dipped 0.6% year over year.
Meanwhile, expenses on wages and benefits decreased 14.7% owing to depreciation of local currencies. The carrier exited the first quarter with cash and cash equivalents of $1.51 billion compared with $1.12 billion at the end of the year-ago period. LATAM Airlines, carrying a Zacks Rank #4 (Sell), had total financial debt of $7.58 billion at the end of the first quarter compared with $7.19 billion at the end of the year-ago period.
Performance of Other Airlines Stocks
Gol Linhas Aereas Inteligentes’ earnings of 20 cents per share (excluding $3.08 from non-recurring items) in first-quarter 2020 increased year over year on cost-saving initiatives. Net operating revenues of $710.9 million missed the Zacks Consensus Estimate of $929.8 million and declined year over year. The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Copa Holdings (CPA - Free Report) , carrying a Zacks Rank #3 (Hold), reported earnings of $1.75 per share in the first quarter, beating the Zacks Consensus Estimate by 19 cents. The bottom line fell 17.1% year over year primarily due to lower revenues. Quarterly revenues declined 11.4% to $595.5 million but beat the Zacks Consensus Estimate of $592.8 million.
Azul (AZUL - Free Report) , carrying a Zacks Rank #3, incurred a loss of $1.63 per share on an adjusted basis in the first quarter, wider than the Zacks Consensus Estimate of a loss of 50 cents. In the year-ago quarter, the company reported adjusted earnings of 49 cents per share. Total revenues of $633 million surpassed the Zacks Consensus Estimate of $613 million.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>