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7600.0
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2017-03-22 00:00:00 UTC
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AAL Crosses Below Key Moving Average Level
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AAL
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https://www.nasdaq.com/articles/aal-crosses-below-key-moving-average-level-2017-03-22
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nan
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nan
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $40.12, changing hands as low as $39.21 per share. American Airlines Group Inc shares are currently trading down about 1.5% on the day. The chart below shows the one year performance of AAL shares, versus its 200 day moving average:
Looking at the chart above, AAL's low point in its 52 week range is $24.85 per share, with $50.64 as the 52 week high point - that compares with a last trade of $39.94.
AAL makes up 6.74% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR)
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $40.12, changing hands as low as $39.21 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $24.85 per share, with $50.64 as the 52 week high point - that compares with a last trade of $39.94. AAL makes up 6.74% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR) Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $40.12, changing hands as low as $39.21 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $24.85 per share, with $50.64 as the 52 week high point - that compares with a last trade of $39.94. AAL makes up 6.74% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR) Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $40.12, changing hands as low as $39.21 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $24.85 per share, with $50.64 as the 52 week high point - that compares with a last trade of $39.94. AAL makes up 6.74% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR) Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed below their 200 day moving average of $40.12, changing hands as low as $39.21 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $24.85 per share, with $50.64 as the 52 week high point - that compares with a last trade of $39.94. AAL makes up 6.74% of the First Trust Nasdaq Transportation ETF (Symbol: FTXR) Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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240dd0c0-cbe5-4388-b4c9-e3af77052403
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7601.0
|
2017-03-20 00:00:00 UTC
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Why United Continental Holdings Inc (UAL) Stock Lags Behind Its Peers
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AAL
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https://www.nasdaq.com/articles/why-united-continental-holdings-inc-ual-stock-lags-behind-its-peers-2017-03-20
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Two years ago, leading domestic-based airline firm United Continental Holdings Inc (NYSE: UAL ) spent close to $12 billion in aircraft fuel to help 4,500 flights a day fly the friendly skies. For all of 2016, that figure was completely cut in half.
Source: Shutterstock
Depressed oil prices may be putting a hurting on energy producers, but are proving a boon for airlines, cruise ships and any transportation business heavily dependent on fueling their fleets with petrol.
UAL stock is no exception, and an improving economy is helping keep its flights near full capacity. The prospects for airline stocks are as great as they have ever been.
Of course, the current tailwinds helping airline stocks could quickly turn into headwinds. United Airlines went bankrupt back in 2002, and the major carriers, including Delta Air Lines, Inc. (NYSE: DAL ) (2005) and American Airlines Group Inc (NASDAQ: AAL ) (2011). Only Southwest Airlines Co (NYSE: LUV ) has succeeded staying out of bankruptcy court since its founding.
Further Upside Ahead for United Airlines?
The wave of bankruptcies resulted in the merging of many legacy firms including Northwest, Continental and U.S. Airways. The industry is now down to four players that control about 80% of the total U.S. market. United, American and Delta each report about $40 billion in annual sales, with Southwest about half at $20 billion.
10 Safe Dividend Stocks to Own During the Next Market Crash
Another big benefit of bankruptcy for UAL stock is the clearing away of debt. United has successfully paid down $6 billion in indebtedness since 2010. Falling fuel costs have helped it buy back $4 billion of its own stock since 2014. By 2018, it plans to reduce capital expenditures by $1 billion.
The above items are very shareholder friendly and should support airline stocks like United Airlines. Reducing debt lowers financial risk, lower capex leaves more room to buy back stock and debt, and the share repurchases lower shares outstanding, which boosts earnings-per-share. Oh, and UAL stock ended 2016 with $4.3 billion in cash on its balance sheet.
Given the strong financial profile and favorable prospects for the U.S. and global economy, it's somewhat surprising that United stock trades at a single-digit price-to-earnings ratio. Based off 2018 expectations, the P/E ratio is below 9. It is only 9.8 based off this year's expectations, and could fall further if the current drop in oil prices holds.
After decades of volatility and waves of bankruptcies, investors appear to be warming to the competitive environment among domestic airlines that favors the leaders. Berkshire Hathaway Inc. (NYSE: BRK.A , NYSE: BRK.B ), the giant conglomerate run by legendary investor Warren Buffett, knows a thing or two about picking winning stocks and dominant industries. His firm was recently reported to have built stakes in all four leading airlines.
There is still considerable risk to investing in airline stocks. Geopolitical concerns and safety threats can quickly send leisure stocks on a downward path. Fortunately, there haven't been any domestic airline tragedies in recent years. Furthermore, the political environment has been relatively friendly for travelers for quite some time now across the globe. There is no reason to see that ending any time soon.
The industry has also fully embraced ancillary fees to stabilize airline ticket ups and downs. Most leading players charge travelers to check baggage, sit in larger and more conveniently situated seats and even eat food while on board. They also offer credit cards with annual fees and entice travelers with airline miles and status-related perks, such as early boarding or upgrades to first class.
Bottom Line on UAL Stock
The only reason I can't fully embrace UAL stock is that its rivals look like even better investments. Of the top four, United Airlines has the lowest return on equity.
Privacy Revamp Makes Facebook Inc (FB) Stock Even More Attractive
The others also pay a dividend, though all are well below the market dividend yield of closer to 2%. Delta and American also trade at lower forward P/E ratios of 8.1 and 7.6, respectively.
American is my bet for best performer over the next couple of years. It has one of the youngest aircraft fleets, which will help keep maintenance costs low and also indicates they are among the most fuel-efficient compared to rivals. Alaska Air Group, Inc. (NYSE: ALK ) trades at a similar forward earnings multiple to United, but it is small and growing rather briskly.
Of course, all bets are off if oil prices rise rapidly, the economy falls into recession, or travelers get spooked by some negative geopolitical event. The list of industry pitfalls is large, but the environment has been as stable as it can be for some time. And as mentioned earlier, airline stocks have even caught the attention of Warren Buffett, or at least his investing protégés.
As of this writing, Ryan Fuhrmann did not hold a position in any of the aforementioned securities.
More From InvestorPlace
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The post Why United Continental Holdings Inc (UAL) Stock Lags Behind Its Peers appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
United Airlines went bankrupt back in 2002, and the major carriers, including Delta Air Lines, Inc. (NYSE: DAL ) (2005) and American Airlines Group Inc (NASDAQ: AAL ) (2011). Source: Shutterstock Depressed oil prices may be putting a hurting on energy producers, but are proving a boon for airlines, cruise ships and any transportation business heavily dependent on fueling their fleets with petrol. Given the strong financial profile and favorable prospects for the U.S. and global economy, it's somewhat surprising that United stock trades at a single-digit price-to-earnings ratio.
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United Airlines went bankrupt back in 2002, and the major carriers, including Delta Air Lines, Inc. (NYSE: DAL ) (2005) and American Airlines Group Inc (NASDAQ: AAL ) (2011). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Two years ago, leading domestic-based airline firm United Continental Holdings Inc (NYSE: UAL ) spent close to $12 billion in aircraft fuel to help 4,500 flights a day fly the friendly skies. Reducing debt lowers financial risk, lower capex leaves more room to buy back stock and debt, and the share repurchases lower shares outstanding, which boosts earnings-per-share.
|
United Airlines went bankrupt back in 2002, and the major carriers, including Delta Air Lines, Inc. (NYSE: DAL ) (2005) and American Airlines Group Inc (NASDAQ: AAL ) (2011). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Two years ago, leading domestic-based airline firm United Continental Holdings Inc (NYSE: UAL ) spent close to $12 billion in aircraft fuel to help 4,500 flights a day fly the friendly skies. The above items are very shareholder friendly and should support airline stocks like United Airlines.
|
United Airlines went bankrupt back in 2002, and the major carriers, including Delta Air Lines, Inc. (NYSE: DAL ) (2005) and American Airlines Group Inc (NASDAQ: AAL ) (2011). United, American and Delta each report about $40 billion in annual sales, with Southwest about half at $20 billion. Falling fuel costs have helped it buy back $4 billion of its own stock since 2014.
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2e39f288-9cfb-4def-9c7c-363cfcaf5d90
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7602.0
|
2017-03-16 00:00:00 UTC
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Three Picks For The Post-Fed Market
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AAL
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https://www.nasdaq.com/articles/three-picks-post-fed-market-2017-03-16
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nan
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nan
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So now we know. When the Fed announced a rate hike and the intention for more of the same to come yesterday, the market behaved in a manner that defied conventional wisdom but was predicted here. Stocks surged as the good news that the Fed saw the economy in good shape overshadowed the already priced in negative effects of higher interest rates.
Given that traders and investors are relentlessly focused on the good news, it seems that we are headed higher again. If that is the case, there is one question that has to be asked: Where should money go to take advantage of that?
If this is a reversal of the small correction that we saw over the last few days and we are headed to new highs, then it makes sense to concentrate on the stocks and sectors that led the brief move down. After all, they have some catching up to do now that the worries that caused that move seem to have disappeared.
That logic leads me to focus on finding a candidate in three areas: energy, airlines, and manufacturing. Investing in one company in each of those should pay off as optimism returns.
1. Energy
Energy, of course, has its own dynamic. The big drop in oil prices over the last few weeks has been the main driver of the drop there, but there are a couple of things that suggest that that is over. Firstly, as I laid out in this article, the drop in oil was the result of a focus on supply issues, even though the demand picture was improving quietly in the background.
If the market is now banking on significant growth in the economy despite the rate hike, that demand situation will once again become the focus, and if that is the case, the high levels of U.S. production will be seen as a positive rather than a negative.
In addition, the dollar also reacted in a somewhat counter-intuitive manner, dropping on yesterday’s news. A lower dollar is generally conducive to higher oil or, at the very least, it limits the downside to prices.
Oil’s expected recovery combined with a generally bullish stock market is good news for the big boys in the field, and especially those that have been investing in anticipation of a demand boost. One of the companies that have taken that view most aggressively is Exxon Mobil (XOM), so that stock is a logical pick in the energy sector.
2. Airlines
There are a few potential choices among airlines. Again, the weakness in airline stocks came about as traders focused on a possible oversupply situation, a problem that will become a plus if the current anticipated economic growth arrives. Even if it doesn’t, the anticipation of better times ahead should result in some big jumps in some of the harder hit stocks over the next month or two.
My personal preference is for American Airlines (AAL). The management there has shown recently that they have a good handle on market conditions and have the routes to take advantage of that. I would say that if your preference was for a more domestically focused carrier such as Southwest (LUV), I wouldn’t put you off investing there. I just feel that if growth does come, the biggest pick up will be at the high end of fares rather than the discount carriers, making AAL a better choice.
3. Manufacturing
There are also many potential investments in the manufacturing sector, but here it will pay to take note of some actions and words of the Trump administration. The President evidently sees the steel industry as indicative of the kind of decline that he ran against.
Free market types may be uneasy about the long term effects of a more nationalist policy towards trade, and there are undoubtedly holes in the order that pipelines use American steel in the future. Additionally, his words don't always sync up to action, given that despite his promises, the Keystone XL pipeline won't have to be built using U.S. steel after all.
That being said, reworking trade deals and encouraging buying at home can only be positive for U.S. Steel (X).
That stock lost around 15% in the run up to yesterday’s announcement then jumped yesterday. It does, however, still have some ground to make up and should provide a decent short to medium term return.
Final Word
The evidence so far suggests that the market is shifting focus again and, after a short wobble when pessimism reigned, is back to the anticipation of stimulative fiscal policies that will more than outweigh a more cautious monetary environment. Given that, stocks that have dropped noticeably over the last few weeks - like XOM, AAL, and X - provide the best opportunities to take advantage as we push on to new highs.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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My personal preference is for American Airlines (AAL). I just feel that if growth does come, the biggest pick up will be at the high end of fares rather than the discount carriers, making AAL a better choice. Given that, stocks that have dropped noticeably over the last few weeks - like XOM, AAL, and X - provide the best opportunities to take advantage as we push on to new highs.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. My personal preference is for American Airlines (AAL). I just feel that if growth does come, the biggest pick up will be at the high end of fares rather than the discount carriers, making AAL a better choice.
|
My personal preference is for American Airlines (AAL). I just feel that if growth does come, the biggest pick up will be at the high end of fares rather than the discount carriers, making AAL a better choice. Given that, stocks that have dropped noticeably over the last few weeks - like XOM, AAL, and X - provide the best opportunities to take advantage as we push on to new highs.
|
My personal preference is for American Airlines (AAL). I just feel that if growth does come, the biggest pick up will be at the high end of fares rather than the discount carriers, making AAL a better choice. Given that, stocks that have dropped noticeably over the last few weeks - like XOM, AAL, and X - provide the best opportunities to take advantage as we push on to new highs.
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17be628c-a95a-44cd-8a1c-db3da2228aa3
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7603.0
|
2017-03-15 00:00:00 UTC
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United Airlines Is Increasing Capacity. Should Investors Be Worried?
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AAL
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https://www.nasdaq.com/articles/united-airlines-increasing-capacity-should-investors-be-worried-2017-03-15
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nan
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nan
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A few months ago, there seemed to be a consensus among airline industry executives that slower capacity growth was necessary to get unit revenue growing again. Without consistent unit revenue growth, airline profit margins will fall sharply this year due to the impact of higher oil prices and labor costs.
As a result, big airlines like United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) entered the year with very modest capacity growth plans. However, on Wednesday, United raised its capacity guidance significantly. This could undermine the recent focus on capacity discipline within the industry.
Capacity discipline: The key to airlines' profitability
In recent years, U.S. airlines' profits have soared to levels that would have seemed impossible a decade ago. Capacity discipline has been critical to the industry's revitalization. Four airlines now account for more than 80% of industry capacity, making them less prone to fight desperately for market share than the smaller legacy carriers of yesteryear.
Capacity discipline started to break down in 2015 and 2016 due to the dual impact of lower oil prices and rising competition from budget carriers. As a result, revenue per available seat mile (RASM) slipped 4.2% at United in 2015 and another 4.8% in 2016. At American Airlines, RASM fell 5% in 2015 and declined another 3.7% in 2016.
However, with oil prices rising again, airlines across the industry reduced their growth plans for 2017. As of January, United Airlines expected to grow its full-year capacity by 1% to 2%. Meanwhile, American Airlines plans to increase capacity just 1% this year.
United tries to regain ground
Last November, United Continental's new management team bluntly told investors that market share losses on domestic routes had hurt the company's performance in recent years. There was a clear tension between this statement and United's plan to slow its capacity growth in 2017.
Two weeks ago, it seemed like United Airlines had found a way to add dozens of new flights this summer without impacting its capacity guidance. This week, the company disabused investors of that notion. United now expects that its capacity will rise 2.5% to 3.5% this year, with most of the additional growth coming in the domestic market.
Not surprisingly, competitors are already responding to United's moves to gain market share. For example, last week, American Airlines announced plans to add seven new routes from Chicago to midsize cities in early July. (Chicago is one of the key hubs where United is expanding with an eye toward carrying more connecting traffic.)
Management defends the increase in growth
United's apparent shift from a capacity discipline mentality to a growth mentality is making investors and Wall Street analysts uneasy . Anticipating that, United Continental CEO Oscar Munoz offered a pre-emptive defense of the capacity guidance increase at an investor conference on Wednesday morning.
First, Munoz noted that United has lagged peers in fleet utilization during peak periods. As a result, it is able to add these flights without buying more planes, making this very capital-efficient growth. Higher aircraft reliability is also contributing to the capacity increases.
Second, he revealed that United is reducing its 2017 unit cost forecast in conjunction with the change in its capacity plan. Capacity increases, higher aircraft utilization, and improved operational reliability all tend to drive down unit costs.
Third, Munoz pointed out that United has maintained its guidance for Q1 unit revenue to be roughly flat (plus or minus 1%). By contrast, most other airlines have cut their unit revenue outlooks in recent weeks. United also expects unit revenue to start rising in the second quarter.
It all depends on competitors' responses
United Airlines is one of the largest airlines in the world, but a 1.5% increase in its capacity plans won't disrupt the industry capacity balance in a meaningful way. If other airlines do nothing, United's stepped-up capacity growth could quickly lead to higher profits.
However, competitors like American Airlines won't sit by idly while United tries to steal their customers. As was the case in 2015 and 2016 when capacity grew faster than demand, the incumbents are likely to lower their fares to keep their planes full. That's good news for travelers who hail from smaller cities, but it could make these markets much less profitable for airlines going forward.
United probably needed to expand its hubs just to maintain its long-term competitiveness in the domestic market. But that doesn't mean the path to margin parity with American Airlines and Delta Air Lines will be easy. Investors need to temper their expectations for United Continental's near-term performance as the company tries to reinvent itself.
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Adam Levine-Weinberg owns shares of Delta Air Lines. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As a result, big airlines like United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) entered the year with very modest capacity growth plans. Without consistent unit revenue growth, airline profit margins will fall sharply this year due to the impact of higher oil prices and labor costs. Capacity discipline started to break down in 2015 and 2016 due to the dual impact of lower oil prices and rising competition from budget carriers.
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As a result, big airlines like United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) entered the year with very modest capacity growth plans. Without consistent unit revenue growth, airline profit margins will fall sharply this year due to the impact of higher oil prices and labor costs. Capacity discipline: The key to airlines' profitability In recent years, U.S. airlines' profits have soared to levels that would have seemed impossible a decade ago.
|
As a result, big airlines like United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) entered the year with very modest capacity growth plans. Second, he revealed that United is reducing its 2017 unit cost forecast in conjunction with the change in its capacity plan. It all depends on competitors' responses United Airlines is one of the largest airlines in the world, but a 1.5% increase in its capacity plans won't disrupt the industry capacity balance in a meaningful way.
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As a result, big airlines like United Continental (NYSE: UAL) and American Airlines (NASDAQ: AAL) entered the year with very modest capacity growth plans. However, with oil prices rising again, airlines across the industry reduced their growth plans for 2017. Meanwhile, American Airlines plans to increase capacity just 1% this year.
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fb8b03a9-29fa-4303-968d-fdc50b315736
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7604.0
|
2017-03-15 00:00:00 UTC
|
How Did Southwest Perform Operationally In February?
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AAL
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https://www.nasdaq.com/articles/how-did-southwest-perform-operationally-february-2017-03-15
|
nan
|
nan
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Keeping with the industry trend, Southwest showcased lukewarm performance in its February metrics. The company grew its capacity by 1.2% y-o-y in February, bringing the year to date capacity up 3.8%. Furthermore, the occupancy rate stayed flat in February. In contrast, passenger traffic and passengers boarded grew at a moderate pace of 1.1% and o.7%, respectively. The company attributes this to an unexpected weakness in the close-in yields in the month from loss in traffic due to heavy rainfall in California, which have pushed forward to March. This has also caused the company to revise its unit revenue guidance for Q1'17 from flat to a drop of 2% to 3%. Another headwind for March is the snow storm being seen in the U.S., which has led to a number of cancellations and delays.
Have more questions about Southwest Airlines ( LUV )? See the links below:
Increasing Costs At Southwest Airlines And What They Mean For The Carrier
Southwest Faces Market Heat As It Reports Disappointing Q3'16 Results; Future Guidance Bleak
Will International Expansion Be A Big Part Of Southwest's Future Growth Strategy?
What Are The Factors That Have Strengthened Southwest's Domestic Presence?
Has Southwest Been Able To Provide Meaningful Returns To Its Investors?
How Has Southwest's Cost Efficiency Improved?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Southwest Airlines
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company attributes this to an unexpected weakness in the close-in yields in the month from loss in traffic due to heavy rainfall in California, which have pushed forward to March. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com 2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Southwest Airlines View Interactive Institutional Research (Powered by Trefis): Global Large Cap | U.S.
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For precise figures, please refer to our complete analysis for Southwest Airlines View Interactive Institutional Research (Powered by Trefis): Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap More Trefis Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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See the links below: Increasing Costs At Southwest Airlines And What They Mean For The Carrier Southwest Faces Market Heat As It Reports Disappointing Q3'16 Results; Future Guidance Bleak Will International Expansion Be A Big Part Of Southwest's Future Growth Strategy? For precise figures, please refer to our complete analysis for Southwest Airlines View Interactive Institutional Research (Powered by Trefis): Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap More Trefis Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Keeping with the industry trend, Southwest showcased lukewarm performance in its February metrics. See the links below: Increasing Costs At Southwest Airlines And What They Mean For The Carrier Southwest Faces Market Heat As It Reports Disappointing Q3'16 Results; Future Guidance Bleak Will International Expansion Be A Big Part Of Southwest's Future Growth Strategy? Mid & Small Cap | European Large & Mid Cap More Trefis Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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d377000c-e1f0-4e2a-9e42-04e31b650748
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7605.0
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2017-03-15 00:00:00 UTC
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Airlines Are Fleeing Cuba Again
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AAL
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https://www.nasdaq.com/articles/airlines-are-fleeing-cuba-again-2017-03-15
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nan
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nan
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Just six months ago, a slew of U.S. airlines were eager to begin new routes to Cuba, after then-President Barack Obama eased restrictions on U.S.-Cuba travel. American Airlines (NASDAQ: AAL) , JetBlue Airways (NASDAQ: JBLU) , Southwest Airlines (NYSE: LUV) , Delta Air Lines (NYSE: DAL) , and Spirit Airlines (NASDAQ: SAVE) highlighted the list of carriers that began scheduled service to Cuba in late 2016.
However, it didn't take long for airlines to start to sour on Cuba. While it may become an attractive growth market in the long run, supply has dramatically outstripped demand for the past few months. Responding to this capacity imbalance, two smaller airlines -- Frontier Airlines and Silver Airways -- recently announced that they will pull out of Cuba altogether.
Airlines have had a tough time in Cuba
Havana, Cuba's capital and largest city, lies just 100 miles from Key West, FL. In theory, that proximity to the U.S. could make Cuba a huge Caribbean tourist destination one day.
However, for now, U.S. government regulations restrict travel to Cuba . Importantly, pure tourism is not allowed, although it's not hard to qualify for one of the 12 categories of permissible travel. Furthermore, Cuba doesn't have the tourist infrastructure necessary to support a huge increase in visitor arrivals.
As a result, airlines have started to realize that they need to scale back their ambitious plans for Cuba, at least in the short run. Last month, American Airlines dropped one of two daily flights in each of three secondary Cuban cities. It also intends to switch from mainline to regional aircraft on some routes. JetBlue hasn't eliminated any flights, but it will switch to smaller aircraft on all of its routes to Cuba in early May.
Throwing in the towel
If American Airlines and JetBlue Airways -- the top two airlines in South Florida -- are having trouble making money in Cuba, everyone else is probably in worse shape.
That's especially true for Silver Airways. Its fleet of 34-seat turboprops make it the highest-cost airline in the market. Given that Silver Airways had to deal with competition from American, JetBlue, and/or Southwest on most of its routes, it clearly faced an uphill battle.
Silver Airways started with 36 weekly flights spread across Cuba's nine secondary international airports. Late last year, it decided to slash its capacity in Cuba by 25%. And on Monday, it announced that it will drop all of its routes to Cuba by late April.
Meanwhile, ultra-low cost carrier Frontier Airlines operates just one daily flight to Cuba, connecting Miami and Havana. The company is positioning itself for an IPO later this year, so its management is especially unwilling to operate money-losing routes. As a result, Frontier will discontinue the Miami-Havana route in early June. There are plenty of other places where it can profitably deploy that capacity, especially during the peak summer travel season.
Good news for other airlines serving Cuba
As various airlines reduce their capacity to Cuba or exit the market entirely, it should help those that remain to improve their profitability.
For example, Silver Airways competes directly with JetBlue and Southwest on a number of routes from Fort Lauderdale to secondary cities in Cuba. It also competes indirectly with American Airlines, which serves many of the same cities from nearby Miami International Airport. Those three larger carriers should be able to carve up most of the traffic Silver Airways has been carrying.
Similarly, Frontier's decision to drop the Miami-Havana route should help Spirit Airlines, the only other ultra-low cost carrier flying to Cuba. Spirit plans to continue operating its two daily flights between Fort Lauderdale and Havana for the foreseeable future. American, JetBlue, Southwest, and Delta are also positioned to benefit from a more rational competitive environment. All five fly to Havana from South Florida.
It may still take a long time for Cuba flights to start producing significant profits for U.S. airlines. However, the more that airlines pull back on capacity in Cuba, the faster this march to profitability will occur.
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Adam Levine-Weinberg owns shares of Delta Air Lines, JetBlue Airways, and Spirit Airlines and is long January 2019 $10 calls on JetBlue Airways. The Motley Fool recommends JetBlue Airways and Spirit Airlines. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NASDAQ: AAL) , JetBlue Airways (NASDAQ: JBLU) , Southwest Airlines (NYSE: LUV) , Delta Air Lines (NYSE: DAL) , and Spirit Airlines (NASDAQ: SAVE) highlighted the list of carriers that began scheduled service to Cuba in late 2016. Just six months ago, a slew of U.S. airlines were eager to begin new routes to Cuba, after then-President Barack Obama eased restrictions on U.S.-Cuba travel. For example, Silver Airways competes directly with JetBlue and Southwest on a number of routes from Fort Lauderdale to secondary cities in Cuba.
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American Airlines (NASDAQ: AAL) , JetBlue Airways (NASDAQ: JBLU) , Southwest Airlines (NYSE: LUV) , Delta Air Lines (NYSE: DAL) , and Spirit Airlines (NASDAQ: SAVE) highlighted the list of carriers that began scheduled service to Cuba in late 2016. Meanwhile, ultra-low cost carrier Frontier Airlines operates just one daily flight to Cuba, connecting Miami and Havana. *Stock Advisor returns as of February 6, 2017 Adam Levine-Weinberg owns shares of Delta Air Lines, JetBlue Airways, and Spirit Airlines and is long January 2019 $10 calls on JetBlue Airways.
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American Airlines (NASDAQ: AAL) , JetBlue Airways (NASDAQ: JBLU) , Southwest Airlines (NYSE: LUV) , Delta Air Lines (NYSE: DAL) , and Spirit Airlines (NASDAQ: SAVE) highlighted the list of carriers that began scheduled service to Cuba in late 2016. Throwing in the towel If American Airlines and JetBlue Airways -- the top two airlines in South Florida -- are having trouble making money in Cuba, everyone else is probably in worse shape. Good news for other airlines serving Cuba As various airlines reduce their capacity to Cuba or exit the market entirely, it should help those that remain to improve their profitability.
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American Airlines (NASDAQ: AAL) , JetBlue Airways (NASDAQ: JBLU) , Southwest Airlines (NYSE: LUV) , Delta Air Lines (NYSE: DAL) , and Spirit Airlines (NASDAQ: SAVE) highlighted the list of carriers that began scheduled service to Cuba in late 2016. However, it didn't take long for airlines to start to sour on Cuba. It may still take a long time for Cuba flights to start producing significant profits for U.S. airlines.
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47e592f1-9e71-4cf5-8765-4eb835fff54f
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7606.0
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2017-03-15 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Intel, Glaxo, Schwab, Travelers and American Airlines
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-intel-glaxo-schwab-travelers-and-american-airlines-2017
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For Immediate Release
Chicago, IL -March 15, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Intel (NASDAQ: INTC - Free Report ), Glaxo (NYSE: GSK - Free Report ), Schwab (NYSE: SCHW - Free Report ), Travelers (NYSE: TRV - Free Report ) and American Airlines (NASDAQ: AAL - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday's Analyst Blog:
Top Research Reports for Wednesday: INTC, SCHW, GSK
Today's Research Daily features new research reports on 16 major stocks, including Intel (NASDAQ: INTC - Free Report ), Glaxo (NYSE: GSK - Free Report ) and Schwab (NYSE: SCHW - Free Report ).
Intel shares have gained only +1.2% since election results were announced on Nov 8, lagging the broader Tech sector (up +8.8%) as well as the red-hot semiconductors space (up +15.6%). Continued weakness in the PC space, greater competition from ARM-based chips and major customers like Google looking for alternatives are some of the headwinds for Intel. But the Zacks analyst sees the Data center business as promising. Further, growing clout in the Internet of Things (IoT) and autonomous driving market are key catalysts. The recently announced Mobileye acquisition will provide competitive edge in the autonomous driving technology market. (You can read the full research report on Intelhere >> )
Buy rated Glaxo has outperformed the Zacks Large Cap Pharma sector in the past three months, gaining +9.3% vs a +6.6% increase. The Zacks analyst likes Glaxo's diversified base and presence in different geographical areas as well as its efforts to develop its pipeline. The performance of new products as well as those acquired from Novartis is also encouraging. These should help support revenues and ease the impact of the loss of Advair sales. However, challenges remain in the form of increasing competition, genericization and pricing pressure, which will continue to impact the company's performance. (You can read the full research report on Glaxo here >> )
Shares of Schwab have outperformed the Zacks Investment Brokers industry over the last three months, gaining +9% vs +3.7%. The Zacks analyst emphasizes that Schwab is well positioned to benefit from rising rate environment and plans to eliminate fee waivers subsequent to the next rate hike. Also, initiatives to strengthen trading income will support its profitability over the long term, despite the near-term revenue reduction. However, continuous rise in expenses remains a major concern. Significant dependence on fee-based revenue streams also provides cause for apprehension. (You can read the full research report on Schwab here >> )
Other noteworthy reports we are featuring today include Travelers (NYSE: TRV - Free Report ) and American Airlines (NASDAQ: AAL - Free Report ).
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on INTC - FREE
Get the full Report on GSK - FREE
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Get the full Report on AAL - FREE
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Intel Corporation (INTC): Free Stock Analysis Report
GlaxoSmithKline PLC (GSK): Free Stock Analysis Report
The Charles Schwab Corporation (SCHW): Free Stock Analysis Report
The Travelers Companies, Inc. (TRV): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include Intel (NASDAQ: INTC - Free Report ), Glaxo (NYSE: GSK - Free Report ), Schwab (NYSE: SCHW - Free Report ), Travelers (NYSE: TRV - Free Report ) and American Airlines (NASDAQ: AAL - Free Report ). (You can read the full research report on Schwab here >> ) Other noteworthy reports we are featuring today include Travelers (NYSE: TRV - Free Report ) and American Airlines (NASDAQ: AAL - Free Report ). Get the full Report on INTC - FREE Get the full Report on GSK - FREE Get the full Report on SCHW - FREE Get the full Report on TRV - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include Intel (NASDAQ: INTC - Free Report ), Glaxo (NYSE: GSK - Free Report ), Schwab (NYSE: SCHW - Free Report ), Travelers (NYSE: TRV - Free Report ) and American Airlines (NASDAQ: AAL - Free Report ). Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report The Charles Schwab Corporation (SCHW): Free Stock Analysis Report The Travelers Companies, Inc. (TRV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. (You can read the full research report on Schwab here >> ) Other noteworthy reports we are featuring today include Travelers (NYSE: TRV - Free Report ) and American Airlines (NASDAQ: AAL - Free Report ).
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Get the full Report on INTC - FREE Get the full Report on GSK - FREE Get the full Report on SCHW - FREE Get the full Report on TRV - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report GlaxoSmithKline PLC (GSK): Free Stock Analysis Report The Charles Schwab Corporation (SCHW): Free Stock Analysis Report The Travelers Companies, Inc. (TRV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Intel (NASDAQ: INTC - Free Report ), Glaxo (NYSE: GSK - Free Report ), Schwab (NYSE: SCHW - Free Report ), Travelers (NYSE: TRV - Free Report ) and American Airlines (NASDAQ: AAL - Free Report ).
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Stocks recently featured in the blog include Intel (NASDAQ: INTC - Free Report ), Glaxo (NYSE: GSK - Free Report ), Schwab (NYSE: SCHW - Free Report ), Travelers (NYSE: TRV - Free Report ) and American Airlines (NASDAQ: AAL - Free Report ). (You can read the full research report on Schwab here >> ) Other noteworthy reports we are featuring today include Travelers (NYSE: TRV - Free Report ) and American Airlines (NASDAQ: AAL - Free Report ). Get the full Report on INTC - FREE Get the full Report on GSK - FREE Get the full Report on SCHW - FREE Get the full Report on TRV - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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3edb14fa-3089-4db3-b501-2f9e1fd5b48a
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7607.0
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2017-03-14 00:00:00 UTC
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3 Big Stock Charts for Tuesday: Seagate Technology PLC (STX), American Airlines Group Inc (AAL) and SBA Communications Corporation (SBAC)
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AAL
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https://www.nasdaq.com/articles/3-big-stock-charts-for-tuesday%3A-seagate-technology-plc-stx-american-airlines-group-inc-aal
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Uncertainty over the next few days, including the Federal Open Market Committee meeting outcome, has traders pulling back on their positions. The additional selling is broad in its scope, which can be seen as positive because it suggests that the market is only slightly concerned about this week's trading and it is not settling into a bear market correction.
Today's three big stock charts look at shares of SBA Communications Corporation (NASDAQ: SBAC ), American Airlines Group Inc (NASDAQ: AAL ) and Seagate Technology PLC (NASDAQ: STX ).
American Airlines Group Inc (AAL)
American Airlines has spent the last two weeks leading the transportation sector lower, but it appears that the shares may be ready to run into some support that could act as a landing field for the stock.
AAL shares have declined more than 14% over the last two trading weeks as the stock has attracted bearish traders and profit-takers by breaking below their 50- and 100-day moving averages within days of each other.
The short-term decline dropped American Airlines shares to the point where the longer-running 200-day moving average is ready to come into play as potential support.
10 Monthly Dividend Stocks to Buy to Pay the Bills
The long-term trendline sits at $40, which will also add some potential support to AAL stock given its round-numbered quality.
Additionally, American Airlines shares have now encroached oversold territory according to their RSI reading. This suggests that AAL stock should see some buying interest based on sellers' having likely run out of momentum.
For now, the upside potential for American Airlines appears to be $45 as this is the lower channel of the price trend that runs from the stock's bottom in June through yesterday's close.
Seagate Technology PLC (STX)
Seagate shares are among the few shares that rallied hard after their earnings release as the stock rallied 33% higher after the earnings call. Now, STX shares are retreating a bit from the overbought situation that was created by this powerful rally.
We saw Seagate shares touch up on $50 two weeks ago, which was a psychological trigger for traders to start locking in some of their profits as STX stock had remained in overbought territory for an extended period.
Today, Seagate shares are breaking lower again on average volume as the stock moves closer to a 10% correction. For the most part, STX traders would view a 10% correction in Seagate Technology as a healthy move that would likely draw buyers back into the fold.
Conveniently, a 10% correction will place STX stock right on its 50-day moving average, which continues to trend higher today. Traders eyeing that potential buy level should watch just under the $44-level.
SBA Communications Corporation (SBAC)
SBA Communications stock has been enjoying a strong rally after its recent earnings report. SBAC stock's move has taken it into technical overbought territory at the same time that the chart is running into an old resistance enemy.
Shares of SBA Communications officially became overbought on the move to $166 more than a week ago. The consolidation and slight move higher to $118 has maintained the overbought reading, warning of a short-term decline for SBAC stock.
Why Home Depot Inc (HD) Stock Could Rise Another 15%
Looking back at the daily chart, SBA Communications experienced chart resistance at $118 twice in August, meaning traders will be tepid about any softness in the daily pricing of SBAC stock at this level.
From a longer-term perspective, SBA Communications shares are transitioning into a bullish trend, as the 50-day moving average just crossed above the 200-day trendline for the shares. This suggests that SBAC stock is likely to trend higher over the next four to six months.
That said, expect to see some short-term profit-taking that may test the $112-level for SBA Communications shares as the stock works out of its overbought readings and offers traders a chance to "buy the dip" after the earnings report.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.
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The post 3 Big Stock Charts for Tuesday: Seagate Technology PLC (STX), American Airlines Group Inc (AAL) and SBA Communications Corporation (SBAC) appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Today's three big stock charts look at shares of SBA Communications Corporation (NASDAQ: SBAC ), American Airlines Group Inc (NASDAQ: AAL ) and Seagate Technology PLC (NASDAQ: STX ). American Airlines Group Inc (AAL) American Airlines has spent the last two weeks leading the transportation sector lower, but it appears that the shares may be ready to run into some support that could act as a landing field for the stock. AAL shares have declined more than 14% over the last two trading weeks as the stock has attracted bearish traders and profit-takers by breaking below their 50- and 100-day moving averages within days of each other.
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Today's three big stock charts look at shares of SBA Communications Corporation (NASDAQ: SBAC ), American Airlines Group Inc (NASDAQ: AAL ) and Seagate Technology PLC (NASDAQ: STX ). More From InvestorPlace 7 High-Yield Dividend Stocks That Are Actually Safe 7 Blue-Chip Stocks Holding You Back The post 3 Big Stock Charts for Tuesday: Seagate Technology PLC (STX), American Airlines Group Inc (AAL) and SBA Communications Corporation (SBAC) appeared first on InvestorPlace . American Airlines Group Inc (AAL) American Airlines has spent the last two weeks leading the transportation sector lower, but it appears that the shares may be ready to run into some support that could act as a landing field for the stock.
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Today's three big stock charts look at shares of SBA Communications Corporation (NASDAQ: SBAC ), American Airlines Group Inc (NASDAQ: AAL ) and Seagate Technology PLC (NASDAQ: STX ). More From InvestorPlace 7 High-Yield Dividend Stocks That Are Actually Safe 7 Blue-Chip Stocks Holding You Back The post 3 Big Stock Charts for Tuesday: Seagate Technology PLC (STX), American Airlines Group Inc (AAL) and SBA Communications Corporation (SBAC) appeared first on InvestorPlace . American Airlines Group Inc (AAL) American Airlines has spent the last two weeks leading the transportation sector lower, but it appears that the shares may be ready to run into some support that could act as a landing field for the stock.
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Today's three big stock charts look at shares of SBA Communications Corporation (NASDAQ: SBAC ), American Airlines Group Inc (NASDAQ: AAL ) and Seagate Technology PLC (NASDAQ: STX ). More From InvestorPlace 7 High-Yield Dividend Stocks That Are Actually Safe 7 Blue-Chip Stocks Holding You Back The post 3 Big Stock Charts for Tuesday: Seagate Technology PLC (STX), American Airlines Group Inc (AAL) and SBA Communications Corporation (SBAC) appeared first on InvestorPlace . American Airlines Group Inc (AAL) American Airlines has spent the last two weeks leading the transportation sector lower, but it appears that the shares may be ready to run into some support that could act as a landing field for the stock.
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77a8cc0d-e010-4926-8795-cc91db7cf722
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7608.0
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2017-03-14 00:00:00 UTC
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Nasdaq 100 Movers: CTXS, KLAC
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-ctxs-klac-2017-03-14
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In early trading on Tuesday, shares of KLA-Tencor Corp. ( KLAC ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 0.5%. Year to date, KLA-Tencor Corp. registers a 18.6% gain.
And the worst performing Nasdaq 100 component thus far on the day is Citrix Systems ( CTXS ), trading down 3.3%. Citrix Systems is showing a gain of 15.4% looking at the year to date performance.
Two other components making moves today are American Airlines Group ( AAL ), trading down 3.2%, and Analog Devices ( ADI ), trading up 0.5% on the day.
VIDEO: Nasdaq 100 Movers: CTXS, KLAC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 3.2%, and Analog Devices ( ADI ), trading up 0.5% on the day. And the worst performing Nasdaq 100 component thus far on the day is Citrix Systems ( CTXS ), trading down 3.3%. Citrix Systems is showing a gain of 15.4% looking at the year to date performance.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 3.2%, and Analog Devices ( ADI ), trading up 0.5% on the day. And the worst performing Nasdaq 100 component thus far on the day is Citrix Systems ( CTXS ), trading down 3.3%. VIDEO: Nasdaq 100 Movers: CTXS, KLAC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 3.2%, and Analog Devices ( ADI ), trading up 0.5% on the day. In early trading on Tuesday, shares of KLA-Tencor Corp. ( KLAC ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 0.5%. And the worst performing Nasdaq 100 component thus far on the day is Citrix Systems ( CTXS ), trading down 3.3%.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 3.2%, and Analog Devices ( ADI ), trading up 0.5% on the day. And the worst performing Nasdaq 100 component thus far on the day is Citrix Systems ( CTXS ), trading down 3.3%. Citrix Systems is showing a gain of 15.4% looking at the year to date performance.
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4e7d2803-0228-4e78-b8e2-e07a43f055f4
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7609.0
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2017-03-14 00:00:00 UTC
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Close Update: Wall Street Weaker Before Fed Decision as Storm Curbs Volumes
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AAL
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https://www.nasdaq.com/articles/close-update-wall-street-weaker-fed-decision-storm-curbs-volumes-2017-03-14
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The benchmark U.S. indices were weaker by the close on Tuesday, as a retreat in oil prices weighed on the energy sector and investors were waiting for the outcome of the Federal Open Market Committee's decision on interest rates.
Volumes in the markets were below average as a winter storm battered the US east coast, leading to emergency advisories and thousands of flight cancellations. United Continental ( UAL ), Delta Air Lines ( DAL ), American Airlines ( AAL ) shares were all weaker. Trading on the S&P 500 was about half the average, while it was around 78% of the norm on the Dow Jones Industrial Average and about 83% on the Nasdaq Composite.
Chevron ( CVX ) led almost two thirds of the blue chips on the Dow Jones Industrial Average weaker as U.S. oil futures dropped more than 1%. Gains in consumer shares Wal-Mart ( WMT ) and Nike (NKE) weren't enough to balance the overall retreat.
On the S&P 500, energy fell 1% to lead nearly all of the sectors lower. The lone gainer was consumer discretionary, which was fractionally higher amid strength in its auto components group.
While the probability of an interest-rate hike Wednesday stood at 93% on the CME Group's FedWatch tool, of concern to investors is the accompanying economic outlook and press conference by Fed Chair Janet Yellen. The statements will be closely watched for clues on growth and the pace of monetary tightening.
Apart from the Fed, the calendar has the weekly Mortgage Bankers' Association applications index scheduled at 7 a.m. ET. February retail sales and consumer price index as well as the March New York Empire State manufacturing report are due at 8:30 a.m. The January business inventories and March National Association of Home Builders' housing market index are out at 10 a.m.
Here's where the markets stood by the close:
US MARKETS
Dow Jones Industrial Average was down 44.11 points (-0.21%)
S&P 500 was down 8.02 points (-0.34%)
Nasdaq Composite Index was down 18.97 points (-0.32%)
GLOBAL SENTIMENT
FTSE 100 was down 0.13%
Nikkei 225 was down 0.12%
Hang Seng Index was down 0.01%
Shanghai China Composite Index was up 0.07%
UPSIDE MOVERS
(+) DRWI (+65.22%) Enters into master sales and services deal with Ingram Micro (IM) Australia
(+) MGI (+24.57%) To be acquired by Euronet Worldwide (EEFT) for $15.20 per share
(+) RT (+24.43%) Exploring strategic alternatives
(+) MSI (+2.09%) Files patent, trade lawsuit against China-based Hytera Communications
DOWNSIDE MOVERS
(-) ANTH (-39.64%) Prices stock offering at 28% discount
(-) AUPH (-25.05%) Prices public offering of $150.5 million shares of common stock
(-) LNTH (-12.28%) Reported secondary offering of 3 million shares of common stock by shareholders
(-) VRX (-10.32%) Bill Ackman sells stake in co.
(-) AP (-6.94%) Swings to Q4 loss
(-) ADES (-1.37%) Q4 revenues plunge to $3.6 million from $13.2 million
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Continental ( UAL ), Delta Air Lines ( DAL ), American Airlines ( AAL ) shares were all weaker. The benchmark U.S. indices were weaker by the close on Tuesday, as a retreat in oil prices weighed on the energy sector and investors were waiting for the outcome of the Federal Open Market Committee's decision on interest rates. While the probability of an interest-rate hike Wednesday stood at 93% on the CME Group's FedWatch tool, of concern to investors is the accompanying economic outlook and press conference by Fed Chair Janet Yellen.
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United Continental ( UAL ), Delta Air Lines ( DAL ), American Airlines ( AAL ) shares were all weaker. Trading on the S&P 500 was about half the average, while it was around 78% of the norm on the Dow Jones Industrial Average and about 83% on the Nasdaq Composite. Chevron ( CVX ) led almost two thirds of the blue chips on the Dow Jones Industrial Average weaker as U.S. oil futures dropped more than 1%.
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United Continental ( UAL ), Delta Air Lines ( DAL ), American Airlines ( AAL ) shares were all weaker. The benchmark U.S. indices were weaker by the close on Tuesday, as a retreat in oil prices weighed on the energy sector and investors were waiting for the outcome of the Federal Open Market Committee's decision on interest rates. Dow Jones Industrial Average was down 44.11 points (-0.21%) S&P 500 was down 8.02 points (-0.34%) Nasdaq Composite Index was down 18.97 points (-0.32%)
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United Continental ( UAL ), Delta Air Lines ( DAL ), American Airlines ( AAL ) shares were all weaker. The January business inventories and March National Association of Home Builders' housing market index are out at 10 a.m. Here's where the markets stood by the close:
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b2333ffc-6a39-4a98-a0cb-9b85b427a77c
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7610.0
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2017-03-13 00:00:00 UTC
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United Continental's Traffic & Load Factor Falls in February
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AAL
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https://www.nasdaq.com/articles/united-continentals-traffic-load-factor-falls-in-february-2017-03-13
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Chicago-based United Continental Holdings, Inc.UAL , the parent company of United Airlines, reported disappointing traffic numbers for the month of February. The company recorded a decrease in load factor (percentage of seats filled by passengers) as the traffic decline was more than the capacity contraction.
Traffic - measured in revenue passenger miles (RPMs) - was 13.95 billion, down 0.8% on a year-over-year basis. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) dipped 0.4% to 18.18 billion. Load factor decreased to 76.7% from 77% a year ago.
At the end of the first two months of 2016, the carrier recorded a 1.7% increase in RPMs to 30 billion, while ASMs grew 2.2% to 38.15 billion, both on a year-over-year basis. Load factor contracted 40 basis points to 78.6% in the period as capacity growth outpaced traffic expansion.
The company posted a completion factor of 99.2% for February. Moreover, 68.5% of scheduled flights (mainline) departed on or before the scheduled time in Feb 2017.
United Continental still expects passenger unit revenues to be down 1% to up 1% on a year-over-year basis in the first quarter of 2017. Even though Delta Air Lines DAL trimmed its passenger unit revenue guidance for the first quarter recently, unit revenues woes seem to be easing for carriers. We note that carriers like American Airlines Group AAL and Alaska Air Group ALK had displayed growth with respect to unit revenues in the fourth quarter of 2016. We expect more carriers to return to positive unit revenues in 2017.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We note that carriers like American Airlines Group AAL and Alaska Air Group ALK had displayed growth with respect to unit revenues in the fourth quarter of 2016. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company recorded a decrease in load factor (percentage of seats filled by passengers) as the traffic decline was more than the capacity contraction.
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We note that carriers like American Airlines Group AAL and Alaska Air Group ALK had displayed growth with respect to unit revenues in the fourth quarter of 2016. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We note that carriers like American Airlines Group AAL and Alaska Air Group ALK had displayed growth with respect to unit revenues in the fourth quarter of 2016. Even though Delta Air Lines DAL trimmed its passenger unit revenue guidance for the first quarter recently, unit revenues woes seem to be easing for carriers.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We note that carriers like American Airlines Group AAL and Alaska Air Group ALK had displayed growth with respect to unit revenues in the fourth quarter of 2016. United Continental still expects passenger unit revenues to be down 1% to up 1% on a year-over-year basis in the first quarter of 2017.
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d4c353ab-211a-4a1b-bc5b-864cfabdc382
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7611.0
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2017-03-13 00:00:00 UTC
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Market Close Report: NASDAQ Composite index closes at 5,875.78 up 14.05 points
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AAL
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-587578-1405-points-2017-03-13
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nan
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nan
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Monday's session closes with the NASDAQ Composite Index at 5,875.78. The total shares traded for the NASDAQ was over 1.94 billion.
Advancers stocks led declining by 1.68 to 1 ratio. There were 1801 advancers and 1075 decliners for the day. On the NASDAQ Stock Exchange 91 stocks reached a 52 week high and 34 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed up .16% for the day; a total of 8.67 points. The current value is 5,394.57. American Airlines Group, Inc. ( AAL ) had the largest percent change down (-3.49%) while Citrix Systems, Inc. ( CTXS ) had the largest percent change gain rising 6.79%.
The Dow Jones index closed down -.1% for the day; a total of -21.5 points. The current value is 20,881.48. Merck & Company, Inc. ( MRK ) had the largest percent change down (-2.21%) while Walt Disney Company (The) ( DIS ) had the largest percent change gain rising .54%.
NASDAQ Market Wrap
As of 3/13/2017 4:44:02 PM
BILLIONS OF 1.94 NASDAQ SHARES TRADED TODAY 91 STOCKS REACHED A 52 WEEK HIGH 34 THOSE REACHING LOWS TOTALEDCitrix Systems, Inc. [CTXS]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 6.79 ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-3.49%) while Citrix Systems, Inc. ( CTXS ) had the largest percent change gain rising 6.79%. The Dow Jones index closed down -.1% for the day; a total of -21.5 points. Merck & Company, Inc. ( MRK ) had the largest percent change down (-2.21%) while Walt Disney Company (The) ( DIS ) had the largest percent change gain rising .54%.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-3.49%) while Citrix Systems, Inc. ( CTXS ) had the largest percent change gain rising 6.79%. On the NASDAQ Stock Exchange 91 stocks reached a 52 week high and 34 those reaching lows totaled. NASDAQ Market Wrap As of 3/13/2017 4:44:02 PM BILLIONS OF 1.94 NASDAQ SHARES TRADED TODAY 91 STOCKS REACHED A 52 WEEK HIGH 34 THOSE REACHING LOWS TOTALEDCitrix Systems, Inc. [CTXS]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 6.79 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-3.49%) while Citrix Systems, Inc. ( CTXS ) had the largest percent change gain rising 6.79%. On the NASDAQ Stock Exchange 91 stocks reached a 52 week high and 34 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-3.49%) while Citrix Systems, Inc. ( CTXS ) had the largest percent change gain rising 6.79%. There were 1801 advancers and 1075 decliners for the day. The NASDAQ 100 index closed up .16% for the day; a total of 8.67 points.
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79070dc1-c5e2-444a-aa2a-abced388784b
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7612.0
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2017-03-13 00:00:00 UTC
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2 More Airlines Offer Excuses and Cut Revenue Guidance
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AAL
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https://www.nasdaq.com/articles/2-more-airlines-offer-excuses-and-cut-revenue-guidance-2017-03-13
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nan
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nan
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Earlier this month, Delta Air Lines (NYSE: DAL) cut its unit revenue guidance for the first quarter, citing weaker-than-expected demand during February.
Delta isn't alone in facing a bumpier ride than it had expected this quarter. Late last week, American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) reduced their unit revenue forecasts as well. Of the top four U.S. airlines, only United Continental is sticking with its original quarterly unit revenue guidance.
Another one bites the dust
Among the four airlines that dominate the U.S. airline industry, American Airlines has had by far the strongest unit revenue trends over the past six months. Indeed, while its peers posted unit revenue declines in the 2%-3% range last quarter, American managed to boost its revenue per available seat mile (RASM) 1.3% year over year.
On American Airlines' fourth-quarter earnings call, management called for revenue growth to accelerate in 2017. Specifically, company president Robert Isom predicted that RASM would rise 2.5%-4.5% year over year in Q1.
As of early February, the company maintained that unit revenue guidance. However, it had to walk that back last Thursday; American Airlines now expects RASM to increase 1.5%-3.5% this quarter.
The company "blamed" this RASM shortfall on strong operational performance. Through the end of February, its mainline completion factor -- the percentage of flights not canceled -- reached 98.9%, up from 97.7% a year earlier. Completing more flights reduces unit costs and keeps customers happy, but it can hurt unit revenue because it means that there are more seats available.
This explanation should be taken with a grain of salt, though. Delta Air Lines' mainline completion factor was more than 99% through the first two months of the year. American Airlines has made some progress in getting its operation under control -- helped by the mild winter -- but its operational performance hasn't been off the charts by any means.
Southwest stumbles, too
Southwest Airlines was also forced to slash its revenue guidance late last week. On Friday, the discount airline acknowledged that RASM will probably fall 2%-3% this quarter, compared to initial guidance that called for a modest 0%-1% decline.
Southwest also attributed its unit revenue miss in part to a higher-than-expected completion factor during February. Additionally, it referenced a loss of traffic related to heavy rains in California -- where Southwest is the No. 1 airline -- and weak demand for last-minute tickets during the second half of February.
The industry's unit revenue recovery remains on track
After reporting significant RASM declines throughout much of 2015 and 2016, U.S. airlines finally started to get back on track last fall. As many industry veterans had expected, higher oil prices eventually imposed more pricing discipline on airlines. The improving unit revenue outlook has lifted shares of airlines like American Airlines and Southwest Airlines.
Naturally, executives at both companies are eager to keep these rallies going by avoiding the appearance of facing a setback. This may explain why they felt the need to offer various excuses for their revenue misses this quarter.
Clearly, the airline industry's unit revenue recovery is still on shaky ground. That said, it's important to recognize that the first quarter is often volatile due to the impact of winter weather. The timing of Easter is also affecting results this year.
From a high-level perspective, airlines' unit revenue trends are moving in the right direction. Furthermore, most airlines have reported that the outlook for April looks strong so far. Thus, investors shouldn't worry too much about the unit revenue guidance cuts at Delta Air Lines, American Airlines, and Southwest Airlines.
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Adam Levine-Weinberg owns shares of Delta Air Lines. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Late last week, American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) reduced their unit revenue forecasts as well. Earlier this month, Delta Air Lines (NYSE: DAL) cut its unit revenue guidance for the first quarter, citing weaker-than-expected demand during February. Through the end of February, its mainline completion factor -- the percentage of flights not canceled -- reached 98.9%, up from 97.7% a year earlier.
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Late last week, American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) reduced their unit revenue forecasts as well. Earlier this month, Delta Air Lines (NYSE: DAL) cut its unit revenue guidance for the first quarter, citing weaker-than-expected demand during February. Thus, investors shouldn't worry too much about the unit revenue guidance cuts at Delta Air Lines, American Airlines, and Southwest Airlines.
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Late last week, American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) reduced their unit revenue forecasts as well. Another one bites the dust Among the four airlines that dominate the U.S. airline industry, American Airlines has had by far the strongest unit revenue trends over the past six months. The improving unit revenue outlook has lifted shares of airlines like American Airlines and Southwest Airlines.
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Late last week, American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) reduced their unit revenue forecasts as well. Earlier this month, Delta Air Lines (NYSE: DAL) cut its unit revenue guidance for the first quarter, citing weaker-than-expected demand during February. Indeed, while its peers posted unit revenue declines in the 2%-3% range last quarter, American managed to boost its revenue per available seat mile (RASM) 1.3% year over year.
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09c93f87-570b-4478-aac7-51003915fe2a
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7613.0
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2017-03-09 00:00:00 UTC
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After a Soaring Bull Market, What's Up for Airline Stocks?
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AAL
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https://www.nasdaq.com/articles/after-a-soaring-bull-market-whats-up-for-airline-stocks-2017-03-09
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nan
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nan
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Anniversaries call for celebrations but at the same time every passing year offers scope for deliberations, particularly about the measures that should be taken to improve the future performance.
Mar 9, 2017 is the 8 th birthday of the highly acclaimed U.S. bull market. The terrible financial crisis that had gripped the nation eight years ago resulted in a stock market bloodbath. The U.S. stock market slipped to its lowest level on Mar 9, 2009. Major indices like the S&P 500 and the Dow Jones Industrial Average were all struggling big time to combat the blow dealt by the financial crisis.
However, the market has come a long way since then. The Dow has soared 200% from the 6,500 level. The S&P 500 Index ended the Mar 8, 2017 trading session at 2,363, substantially above 676.5 that it had slipped to at the end of business on Mar 9, 2009.
Airlines' Gloomy History
When the entire economy was in the doldrums during the recession, these stocks were not spared either.
It was not too long ago that stocks in the airline space were going through an extreme financial crisis. High fuel costs added to the woes of the carriers. Many of these companies, including big names like Delta Air Lines DAL , even filed for bankruptcy protection. Nonetheless, Delta eventually managed to avert bankruptcy through its merger with Northwest Airlines.
Another sector participant, United Airlines had also filed for bankruptcy in 2002. The company in its current form - United Continental Holdings UAL - was formed in 2010 following the merger of United Airlines and Continental Airlines. United Continental holds a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
American Airlines had filed for bankruptcy in 2011. The subsequent merger of AMR (American Airlines' parent group) and US Airways in 2013 resulted in the formation of the now American Airlines Group AAL .
Oil Price Fall: A Huge Boon
The outbreak of the deadly Ebola virus in 2014 dealt a major blow to airlines stocks. However, Ebola-induced fears diminished gradually, and this coincided with the free fall in oil prices . Since costs associated with fuel are one of the biggest expenses for airlines, low crude prices led to massive savings for carriers, boosting their financial health. Naturally, this caused a massive rebound in airline stock prices, helping carriers like American Airlines and Delta Air Lines, which had filed for bankruptcy protection, rake in huge profits.
The financial prosperity in the airline space even prompted carriers to pay out dividends alongside engaging in activities like share buybacks and profit sharing. In Feb 2017, Delta paid more than $1 billion to its employees as part of its profit-sharing plan for 2016. This is the seventh consecutive year where the carrier has shared profits with its employees.
Low-cost carrier Southwest Airlines LUV paid $586 million to its employees as part of its profit-sharing plan for 2016. American Airlines, which was earlier opposed to profit sharing, changed its stance and embraced the scheme last year.
Airline Surge
The fact that airlines have gained substantially from Mar 2009 can be made out from the fact that the Zacks categorized Transportation-Airline industry has gained a whopping 376.2% over the last eight years. This is substantially higher than the S&P 500 Index's gain of over 210% in the period.
In fact, S&P 500 members like Delta, Southwest Airlines, Alaska Air Group ALK , United Continental Holdings and American Airlines have all made spectacular gains since the gloomy Mar 2009 days.
Is There Scope for Further Growth?
We believe that the answer to the above question is a resounding "Yes." Let's find out why.
Cheap Valuation
Going by the EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) ratio, which is often used to value airline stocks, given their significant debt levels and high depreciation and amortization expenses,the industry doesn't look expensive at this point.
The industry currently has a trailing 12-month EV/EBITDA ratio of 5.9, which is favorable than what the industry saw over the last eight years. The ratio is nearer the low end of 2.3 and far off the high end of 16.5 during the period.
Additionally, the reading compares favorably with the market at large, as the current EV/EBITDA for the S&P 500 is 11 and the median level is 8.4. The industry's favorable positioning compared with the overall market certainly signals more upside.
Other Bullish factors
Unit revenue woes, which had plagued the industry not so long ago, seem to be mitigating. This is evidenced by the fact that many carriers are looking to return to unit revenue growth in 2017. Moreover, improvement in oil prices should enable carriers to raise ticket prices, thereby boosting revenues.
The prospects of the airline stocks were further boosted with Warren Buffett's recent interest in the space after having shunned the sector for quite a long time. Buffet's Berkshire Hathaway increased stakes in airline heavyweights like American Airlines, Delta and United Continental Holdings in the fourth quarter. Moreover, Buffett has invested heavily in low-cost carrier, Southwest Airlines.
The bullish Zacks Industry rank of 58 carried by the 25-member Zacks categorized Transportation-Airline industry also highlights the fact that airline stocks are back in favor. The favorable rank places the industry in the top 22% of the 250+ groups enlisted.
Bottom line
The sector's cheap valuation, Buffet's renewed interest in the airline space, improving unit revenues are some of tailwinds that indicate the good prospects of airline stocks. Moreover, President Trump promised to modernize the obsolete U.S. air traffic control system . Airline companies are also hopeful that the Trump administration will create a low-tax regime with fewer regulations. In the event of materialization of these promises, airline stocks could soar higher.
Where Do Zacks' Investment Ideas Come From?
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Southwest Airlines Company (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The subsequent merger of AMR (American Airlines' parent group) and US Airways in 2013 resulted in the formation of the now American Airlines Group AAL . Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Major indices like the S&P 500 and the Dow Jones Industrial Average were all struggling big time to combat the blow dealt by the financial crisis.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The subsequent merger of AMR (American Airlines' parent group) and US Airways in 2013 resulted in the formation of the now American Airlines Group AAL . Naturally, this caused a massive rebound in airline stock prices, helping carriers like American Airlines and Delta Air Lines, which had filed for bankruptcy protection, rake in huge profits.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The subsequent merger of AMR (American Airlines' parent group) and US Airways in 2013 resulted in the formation of the now American Airlines Group AAL . Naturally, this caused a massive rebound in airline stock prices, helping carriers like American Airlines and Delta Air Lines, which had filed for bankruptcy protection, rake in huge profits.
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The subsequent merger of AMR (American Airlines' parent group) and US Airways in 2013 resulted in the formation of the now American Airlines Group AAL . Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Naturally, this caused a massive rebound in airline stock prices, helping carriers like American Airlines and Delta Air Lines, which had filed for bankruptcy protection, rake in huge profits.
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dd7cdfa5-e132-4ee9-a1b3-d4b2ce246231
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7614.0
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2017-03-09 00:00:00 UTC
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Market Close Report: NASDAQ Composite index closes at 5,838.81 up 1.26 points
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AAL
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-583881-126-points-2017-03-09
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nan
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nan
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Thursday's session closes with the NASDAQ Composite Index at 5,838.81. The total shares traded for the NASDAQ was over 1.97 billion. Declining stocks led advancers by 1.4 to 1 ratio. There were 1206 advancers and 1694 decliners for the day. On the NASDAQ Stock Exchange 36 stocks reached a 52 week high and 35 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed up .08% for the day; a total of 4.18 points. The current value is 5,363.98. American Airlines Group, Inc. ( AAL ) had the largest percent change down (-3.48%) while Regeneron Pharmaceuticals, Inc. ( REGN ) had the largest percent change gain rising 2.3%.
The Dow Jones index closed up .01% for the day; a total of 2.46 points. The current value is 20,858.19. Caterpillar, Inc. ( CAT ) had the largest percent change down (-1.97%) while Johnson & Johnson ( JNJ ) had the largest percent change gain rising 1.49%.
NASDAQ Market Wrap
As of 3/9/2017 4:45:02 PM
BILLIONS OF 1.97 NASDAQ SHARES TRADED TODAY 36 STOCKS REACHED A 52 WEEK HIGH 35 THOSE REACHING LOWS TOTALEDRegeneron Pharmaceuticals, Inc. [REGN]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 2.3 ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-3.48%) while Regeneron Pharmaceuticals, Inc. ( REGN ) had the largest percent change gain rising 2.3%. The Dow Jones index closed up .01% for the day; a total of 2.46 points. NASDAQ Market Wrap As of 3/9/2017 4:45:02 PM BILLIONS OF 1.97 NASDAQ SHARES TRADED TODAY 36 STOCKS REACHED A 52 WEEK HIGH 35 THOSE REACHING LOWS TOTALEDRegeneron Pharmaceuticals, Inc. [REGN]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 2.3 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-3.48%) while Regeneron Pharmaceuticals, Inc. ( REGN ) had the largest percent change gain rising 2.3%. Caterpillar, Inc. ( CAT ) had the largest percent change down (-1.97%) while Johnson & Johnson ( JNJ ) had the largest percent change gain rising 1.49%. NASDAQ Market Wrap As of 3/9/2017 4:45:02 PM BILLIONS OF 1.97 NASDAQ SHARES TRADED TODAY 36 STOCKS REACHED A 52 WEEK HIGH 35 THOSE REACHING LOWS TOTALEDRegeneron Pharmaceuticals, Inc. [REGN]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 2.3 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-3.48%) while Regeneron Pharmaceuticals, Inc. ( REGN ) had the largest percent change gain rising 2.3%. On the NASDAQ Stock Exchange 36 stocks reached a 52 week high and 35 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-3.48%) while Regeneron Pharmaceuticals, Inc. ( REGN ) had the largest percent change gain rising 2.3%. There were 1206 advancers and 1694 decliners for the day. The NASDAQ 100 index closed up .08% for the day; a total of 4.18 points.
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af41bd92-0337-4b82-996f-cad627ade64c
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7615.0
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2017-03-08 00:00:00 UTC
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Why Southwest Airlines Is a Better Stock than JetBlue Now
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AAL
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https://www.nasdaq.com/articles/why-southwest-airlines-is-a-better-stock-than-jetblue-now-2017-03-08
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nan
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nan
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Southwest Airlines Co.LUV and JetBlue Airways CorporationJBLU are two well-known names in the low-cost category of the U.S. airline space. However, the stocks seem to be performing quite differently in the current scenario. This is clearly evidenced by Southwest Airlines' Zacks Rank #2 (Buy) and JetBlue's Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Let's delve into details to find out why this is the case.
Recent Earnings Performance
It is a well-documented fact that a company's quarterly results are often the driving force behind the health of the stock. In the recently concluded fourth-quarter 2016 earnings season Southwest Airlines and JetBlue Airways displayed vastly different performances. Both companies reported their results on Jan 26.
Southwest Airlines reported impressive results for the fourth quarter. The company beat earnings estimates and delivered better-than-expected revenues. Revenues also increased 2% on a year-over-year basis.
On the other hand, JetBlue delivered mixed results in the quarter. While earnings per share beat the Zacks Consensus by a penny, revenues lagged expectations. The bottom line, however, contracted significantly on a year-over-year basis due to higher costs.
Disappointing RASM at JetBlue
The JetBlue stock lost value following the earnings release, mainly due to the lackluster operating revenue per available seat mile (RASM: a key measure of unit revenues) for January. At that time, JetBlue had predicted a decline in RASM in the band of 8-9% in January.
Moving ahead, the metric actually declined approximately 8.5% year over year in January. Holiday placement hurt the metric to the tune of approximately five points. Also, winter storm Jonas contributed to the significant decrease in RASM for the month.
Price Performance
While the JetBlue stock continued to struggle after the fourth-quarter earnings release, the Southwest Airlines stock has flourished. Shares of Long Island City, NY-based, JetBlue depreciated 8.7% since Jan 26, while the Dallas-based Southwest Airlines stock gained 5.4% in the same time span.
A comparison with the Zacks categorized Transportation - Airline industry also shows Southwest Airlines is favorably placed as its shares have outperformed the industry's increase of 1.2% in the above period. JetBlue, on the other hand, disappointed investors.
Other Metrics
Southwest Airlines also boasts a higher return on equity (ROE) of 29.8% for the trailing 12-month period than JetBlue's 20.1%. This indicates that Southwest Airlines is more efficient than JetBlue in using shareholders' funds. We note that Southwest Airlines is a dividend paying stock unlike JetBlue.
Moreover, the expected earnings per share growth rate (3-5 years) for Southwest Airlines currently stands at an attractive 9.2% compared with JetBlue's 3.6%. Moreover, Southwest Airlines' PEG ratio of 1.6 is lower than JetBlue's 3.02.
Additionally, Southwest Airlines' market capitalizations of $35 billion is much higher than JetBlue's $6.5 billion. Southwest Airlines' larger business size than JetBlue better arms it to weather the industry headwinds.
Going by the above arguments, it can safely be said that Southwest Airlines is better placed than JetBlue in the low-cost segment of the U.S. airline space.
We note that the success of low cost carriers like Southwest Airlines and Spirit Airlines SAVE have raised concerns for legacy carriers like American Airlines Group AAL and United Continental Holdings UAL . In a bid to combat the threat of low-cost carriers and attract budget-conscious travelers both the above- mentioned legacy carriers have recently started to sell cheaper tickets (Basic Economy Fares).
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Southwest Airlines Company (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We note that the success of low cost carriers like Southwest Airlines and Spirit Airlines SAVE have raised concerns for legacy carriers like American Airlines Group AAL and United Continental Holdings UAL . Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In the recently concluded fourth-quarter 2016 earnings season Southwest Airlines and JetBlue Airways displayed vastly different performances.
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We note that the success of low cost carriers like Southwest Airlines and Spirit Airlines SAVE have raised concerns for legacy carriers like American Airlines Group AAL and United Continental Holdings UAL . Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. This is clearly evidenced by Southwest Airlines' Zacks Rank #2 (Buy) and JetBlue's Zacks Rank #4 (Sell).
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We note that the success of low cost carriers like Southwest Airlines and Spirit Airlines SAVE have raised concerns for legacy carriers like American Airlines Group AAL and United Continental Holdings UAL . Disappointing RASM at JetBlue The JetBlue stock lost value following the earnings release, mainly due to the lackluster operating revenue per available seat mile (RASM: a key measure of unit revenues) for January.
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We note that the success of low cost carriers like Southwest Airlines and Spirit Airlines SAVE have raised concerns for legacy carriers like American Airlines Group AAL and United Continental Holdings UAL . Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Recent Earnings Performance It is a well-documented fact that a company's quarterly results are often the driving force behind the health of the stock.
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5f027a62-ae51-4534-9f93-43dbacb06108
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7616.0
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2017-03-07 00:00:00 UTC
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Delta Air Lines, Inc. Hits Another Speed Bump
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-inc-hits-another-speed-bump-2017-03-07
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nan
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nan
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In recent years, Delta Air Lines (NYSE: DAL) has been by far the most profitable of the three big U.S. legacy carriers. It achieved this position mainly through savvy route planning and operational reliability. Together, these factors helped Delta earn a unit revenue premium over competitors like American Airlines (NASDAQ: AAL) .
However, about a year ago, Delta's unit revenue trends started to lag those of American. On Monday, Delta Air Lines revealed another setback. For Q1, passenger revenue per available seat mile (PRASM) will be at the bottom of its previous guidance range, and operating margin will fall short of the company's original forecast.
A slow unit revenue recovery
For most of the last two years, Delta Air Lines' management projected that the carrier would outpace its competitors with a quick return to unit revenue growth. Yet for much of that period, Delta was expanding its capacity way too fast to allow a unit revenue recovery.
Delta Air Lines finally reined in its growth during Q4, increasing its capacity just 0.9% year over year, compared to 2.4% growth through the first nine months of 2016. This helped it mitigate its unit revenue slide. PRASM fell 2.7% last quarter, compared to a 5.5% decline in the first nine months of the year.
That said, American Airlines already returned to unit revenue growth last quarter. Revenue per available seat mile rose 1.3% in the fourth quarter, and American Airlines expects even faster growth in this metric during Q1. Delta still has plenty of work to do if it wants to maintain its profitability edge over American.
Another momentum shift
At Delta Air Lines' investor day last December, company president Glen Hauenstein forecast that PRASM would be roughly flat in Q1. By the time Delta provided its official guidance for the quarter in mid-January, management had even more bullish expectations, calling for a 0%-2% PRASM gain this quarter.
Unfortunately, demand has softened recently. Delta has reported a 2.5% PRASM decline for January and a relatively flat PRASM performance for the month of February. This isn't consistent with the high end of Delta's unit revenue guidance.
Thus, it was not very surprising to see Delta Air Lines reduce its unit revenue forecast this week. The company is now back to projecting roughly flat PRASM for the first quarter. Because of this reduced unit revenue forecast -- along with slightly higher than expected fuel prices -- Delta now expects its operating margin to decline to 10%-11% in Q1, compared to its original forecast of an 11%-13% operating margin.
Glass half-empty, or glass half-full?
American Airlines seems certain to outpace Delta's unit revenue growth by a wide margin once again this quarter. It's also disappointing that demand hasn't improved as quickly as Delta had expected back in January.
That said, this may just be a dour, glass half-empty view of Delta Air Lines' current situation. On the bright side, Delta's strong operating margin -- which equates to a high-single-digit pre-tax margin -- will easily outpace American Airlines' projected Q1 adjusted pre-tax margin of 3%-5%.
Furthermore, given that Delta's PRASM declined 2.5% in January and was flat in February, the company will need to produce a 2%-3% PRASM increase this month to reach its new unit revenue target. In other words, while it took a little longer than expected, unit revenue is starting to grow again.
Lastly, Delta Air Lines expects its unit revenue trend to continue improving over the course of 2017. Meanwhile, cost pressure will start to recede. This puts it in position to return to EPS growth in the second half of the year.
Delta's unit revenue recovery is still moving more slowly than management or investors would like. Nevertheless, the company is making gradual progress. If unit revenue continues to move in the right direction during the next few quarters, Delta Air Lines shares may finally gain some momentum after more than two years of stagnation.
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*Stock Advisor returns as of February 6, 2017.
Adam Levine-Weinberg owns shares of Delta Air Lines. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Together, these factors helped Delta earn a unit revenue premium over competitors like American Airlines (NASDAQ: AAL) . For Q1, passenger revenue per available seat mile (PRASM) will be at the bottom of its previous guidance range, and operating margin will fall short of the company's original forecast. Another momentum shift At Delta Air Lines' investor day last December, company president Glen Hauenstein forecast that PRASM would be roughly flat in Q1.
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Together, these factors helped Delta earn a unit revenue premium over competitors like American Airlines (NASDAQ: AAL) . A slow unit revenue recovery For most of the last two years, Delta Air Lines' management projected that the carrier would outpace its competitors with a quick return to unit revenue growth. Lastly, Delta Air Lines expects its unit revenue trend to continue improving over the course of 2017.
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Together, these factors helped Delta earn a unit revenue premium over competitors like American Airlines (NASDAQ: AAL) . A slow unit revenue recovery For most of the last two years, Delta Air Lines' management projected that the carrier would outpace its competitors with a quick return to unit revenue growth. Because of this reduced unit revenue forecast -- along with slightly higher than expected fuel prices -- Delta now expects its operating margin to decline to 10%-11% in Q1, compared to its original forecast of an 11%-13% operating margin.
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Together, these factors helped Delta earn a unit revenue premium over competitors like American Airlines (NASDAQ: AAL) . A slow unit revenue recovery For most of the last two years, Delta Air Lines' management projected that the carrier would outpace its competitors with a quick return to unit revenue growth. If unit revenue continues to move in the right direction during the next few quarters, Delta Air Lines shares may finally gain some momentum after more than two years of stagnation.
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dcfc958a-5dd9-42a3-9268-bd651b8f1a58
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7617.0
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2017-03-06 00:00:00 UTC
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Jets ETF Falls Amid Trump Travel Ban; Gold Miners Continue To Crumble
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AAL
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https://www.nasdaq.com/articles/jets-etf-falls-amid-trump-travel-ban-gold-miners-continue-crumble-2017-03-06
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nan
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nan
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An airlines ETF sold off hard on Monday, with shares of Delta Air Lines ( DAL ), American Airlines ( AAL ) and United Airlines ( UAL ) nose-diving as President Trump made another stab at a travel ban .
U.S. Global Jets ( JETS ) tanked 2.5% in afternoon trade, testing support at the 50-day moving average.
However, gold mining exchange traded funds scored the heftiest losses among sector-equity trackers, extending last week's sharp slide.
[ibdchart symbol="GDXJ" type="daily" size="quarter" position="leftchart" ]
VanEck Vectors Junior Gold Miners ( GDXJ ) sank 6.2% in late trading while its large-cap sibling VanEck Vectors Gold Miners (GDX) slid 3.4% lower.
Spot gold prices traded around the $1,225 an ounce level, down 0.8%. Gold fell to a multiweek low the prior week amid comments from Fed Chair Janet Yellen that a rate hike would likely be "appropriate" given strong economic data.
Small caps led the decline among exchange traded funds tracking major domestic stock indexes, as investors braced for a potential hike in interest rates next week, but stocks pared losses in the midday session.
The small-cap iShares Russell 2000 (IWM) gave up 0.6% vs. a 0.2% stumble for the SPDR S&P 500 (SPY) on the stock market today .
Small-company exchange traded funds roared higher following the Nov. 8 election but have simmered so far in 2017 as their large-cap brethren have taken over stock market leadership.
Bank stocks took a breather after their rally the previous week amid an uptick in expectations for a rate hike.
SPDR S&P Regional Banking (KRE) and Financial Select Sector SPDR Fund (XLF), which offers broad-based exposure to banks, insurers and financial services firms, were 0.7% lower each.
IBD'S TAKE:As the Trump agenda continues to steer the stock market, readIBD LeaderboardandThe Big Picture every day to find highly rated stocks and sectors poised to move higher.
The SPDR financial ETF and its regional bank sibling made 52-week highs on March 2.
XLF finished up 2.3% on the week Friday while rate-sensitive S&P sectors , such as telecoms, gave up as much as 2.1%.
RELATED:
Gold ETF Falls, Miners Tumble
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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An airlines ETF sold off hard on Monday, with shares of Delta Air Lines ( DAL ), American Airlines ( AAL ) and United Airlines ( UAL ) nose-diving as President Trump made another stab at a travel ban . However, gold mining exchange traded funds scored the heftiest losses among sector-equity trackers, extending last week's sharp slide. Gold fell to a multiweek low the prior week amid comments from Fed Chair Janet Yellen that a rate hike would likely be "appropriate" given strong economic data.
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An airlines ETF sold off hard on Monday, with shares of Delta Air Lines ( DAL ), American Airlines ( AAL ) and United Airlines ( UAL ) nose-diving as President Trump made another stab at a travel ban . [ibdchart symbol="GDXJ" type="daily" size="quarter" position="leftchart" ] VanEck Vectors Junior Gold Miners ( GDXJ ) sank 6.2% in late trading while its large-cap sibling VanEck Vectors Gold Miners (GDX) slid 3.4% lower. The SPDR financial ETF and its regional bank sibling made 52-week highs on March 2.
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An airlines ETF sold off hard on Monday, with shares of Delta Air Lines ( DAL ), American Airlines ( AAL ) and United Airlines ( UAL ) nose-diving as President Trump made another stab at a travel ban . [ibdchart symbol="GDXJ" type="daily" size="quarter" position="leftchart" ] VanEck Vectors Junior Gold Miners ( GDXJ ) sank 6.2% in late trading while its large-cap sibling VanEck Vectors Gold Miners (GDX) slid 3.4% lower. Small caps led the decline among exchange traded funds tracking major domestic stock indexes, as investors braced for a potential hike in interest rates next week, but stocks pared losses in the midday session.
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An airlines ETF sold off hard on Monday, with shares of Delta Air Lines ( DAL ), American Airlines ( AAL ) and United Airlines ( UAL ) nose-diving as President Trump made another stab at a travel ban . Small-company exchange traded funds roared higher following the Nov. 8 election but have simmered so far in 2017 as their large-cap brethren have taken over stock market leadership. SPDR S&P Regional Banking (KRE) and Financial Select Sector SPDR Fund (XLF), which offers broad-based exposure to banks, insurers and financial services firms, were 0.7% lower each.
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3ee26745-9098-485b-b2b7-c68011cf65a2
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7618.0
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2017-03-06 00:00:00 UTC
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Nasdaq 100 Movers: AAL, NFLX
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-nflx-2017-03-06
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nan
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nan
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In early trading on Monday, shares of Netflix topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.1%. Year to date, Netflix registers a 14.7% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 3.0%. American Airlines Group is lower by about 2.7% looking at the year to date performance.
Two other components making moves today are NVIDIA, trading down 2.4%, and Liberty Global, trading up 1.2% on the day.
VIDEO: Nasdaq 100 Movers: AAL, NFLX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Nasdaq 100 Movers: AAL, NFLX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 3.0%. American Airlines Group is lower by about 2.7% looking at the year to date performance.
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VIDEO: Nasdaq 100 Movers: AAL, NFLX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 3.0%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Nasdaq 100 Movers: AAL, NFLX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Netflix topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.1%. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 3.0%.
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VIDEO: Nasdaq 100 Movers: AAL, NFLX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 3.0%. American Airlines Group is lower by about 2.7% looking at the year to date performance.
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caa42216-3102-4884-89b7-21acb8328137
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7619.0
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2017-03-06 00:00:00 UTC
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Market Close Report: NASDAQ Composite index closes at 5,849.18 down -21.57 points
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AAL
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-584918-down-2157-points-2017-03-06
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nan
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Monday's session closes with the NASDAQ Composite Index at 5,849.18. The total shares traded for the NASDAQ was over 2.06 billion. Declining stocks led advancers by 2.43 to 1 ratio. There were 855 advancers and 2075 decliners for the day. On the NASDAQ Stock Exchange 35 stocks reached a 52 week high and 26 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed down -.25% for the day; a total of -13.17 points. The current value is 5,360.31. American Airlines Group, Inc. ( AAL ) had the largest percent change down (-3.23%) while Liberty Global plc ( LILAK ) had the largest percent change gain rising 3.02%.
The Dow Jones index closed down -.24% for the day; a total of -51.37 points. The current value is 20,954.34. The Travelers Companies, Inc. ( TRV ) had the largest percent change down (-1.46%) while Caterpillar, Inc. ( CAT ) had the largest percent change gain rising .57%.
NASDAQ Market Wrap
As of 3/6/2017 4:45:03 PM
BILLIONS OF 2.06 NASDAQ SHARES TRADED TODAY 35 STOCKS REACHED A 52 WEEK HIGH 26 THOSE REACHING LOWS TOTALEDLiberty Global plc [LILAK]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 3.02 ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-3.23%) while Liberty Global plc ( LILAK ) had the largest percent change gain rising 3.02%. The Dow Jones index closed down -.24% for the day; a total of -51.37 points. NASDAQ Market Wrap As of 3/6/2017 4:45:03 PM BILLIONS OF 2.06 NASDAQ SHARES TRADED TODAY 35 STOCKS REACHED A 52 WEEK HIGH 26 THOSE REACHING LOWS TOTALEDLiberty Global plc [LILAK]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 3.02 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-3.23%) while Liberty Global plc ( LILAK ) had the largest percent change gain rising 3.02%. On the NASDAQ Stock Exchange 35 stocks reached a 52 week high and 26 those reaching lows totaled. NASDAQ Market Wrap As of 3/6/2017 4:45:03 PM BILLIONS OF 2.06 NASDAQ SHARES TRADED TODAY 35 STOCKS REACHED A 52 WEEK HIGH 26 THOSE REACHING LOWS TOTALEDLiberty Global plc [LILAK]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 3.02 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-3.23%) while Liberty Global plc ( LILAK ) had the largest percent change gain rising 3.02%. On the NASDAQ Stock Exchange 35 stocks reached a 52 week high and 26 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-3.23%) while Liberty Global plc ( LILAK ) had the largest percent change gain rising 3.02%. There were 855 advancers and 2075 decliners for the day. The NASDAQ 100 index closed down -.25% for the day; a total of -13.17 points.
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f744ed30-05e4-479c-b913-1f5c0307dc2b
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7620.0
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2017-03-05 00:00:00 UTC
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Best Stocks Warren Buffett Is Buying in 2017
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AAL
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https://www.nasdaq.com/articles/best-stocks-warren-buffett-buying-2017-2017-03-05
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nan
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nan
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Warren Buffett is arguably the greatest investor of our time, and that makes knowing what stocks he's buying for Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) must-know news. In the fourth quarter, Buffett added a bunch of Apple Inc. (NASDAQ: AAPL) and Delta Air Lines (NYSE: DAL) to his portfolio, and recently, he told CNBC that he's spent about $20 billion of Berkshire Hathaway's cash stockpile buying these and other stocks since "a little before the election." He also revealed that his position in both Apple and airline stocks is bigger now than it was in December.
Profits by the bushel
After consumers opted to hold off on upgrading their iPhones, Apple shares stumbled early in 2016, and that proved to be the perfect opportunity for Berkshire Hathaway portfolio managers Todd Combs and Ted Weschler to pick up shares of the electronics giant at a discount.
Berkshire Hathaway invested $1 billion in Apple stock in the first quarter of 2016 -- a fairly modest stake for a portfolio with $150 billion under management. However, that stake climbed significantly throughout the remainder of the year, and exiting December, Berkshire Hathaway's Apple position was worth about $7.7 billion, making it Buffett's sixth biggest individual stock position.
This week, Buffett appeared on CNBC to discuss Berkshire Hathaway's performance last year, and in his conversation, he let it slip that his interest in Apple continued into this year. Although Apple was already a big holding entering this year, Buffett says he now owns 133 million shares in Apple, making it his second biggest holding.
Apple's shares have rallied sharply since they first showed up in Buffett's portfolio, so it's safe to assume that Berkshire Hathaway is sitting on a nice gain on Apple's stock. He reminded CNBC viewers he could sell at any point, but I think there's reason to think he'll hold on to his Apple position for a while.
Last quarter, iPhone, Mac, Apple Watch, and services sales all reached record highs, and as a result, Apple's revenue and profit finished 2016 on a high note. Revenue in its fiscal first quarter was a record $78.4 billion, up from $75.9 billion last year, and earnings per share were $3.36, up from $3.28 a year ago. Apple's management is guiding investors to expect between $51.5 billion and $53.5 billion in sales this quarter, up between 1.7% and 5.7% year over year.
With operating cash flow of $27 billion allowing management to return $15 billion to investors last year through share buybacks and dividend payments, and business humming along nicely, it wouldn't be surprising if Apple returns even more money to investors this year.
Growing exposure to airlines
When it comes to rewarding investors with market-beating returns, airlines have a rocky history. However, an industrywide restructuring a few years ago is boosting profit, and that's making airlines some of the market's top performers. If the U.S. economy continues to strengthen, then fuller flights will help keep prices firm, and investments in fuel-efficient airplanes will drop even more money to the bottom line.
In the past, Buffett has said that one way to become a millionaire is to start out as a billionaire and then invest in an airline. He doesn't seem to believe that anymore. Over the past six months, he's invested billions of Berkshire Hathaway's cash into the stock of the country's largest airline operators.
As of December, Berkshire Hathaway owned 60 million shares in Delta Air Lines worth roughly $3 billion, plus he owns about $2.5 billion in Southwest Airlines , and about $2.1 billion in each of American Airlines and United Continental Holdings . Overall, Buffett's Berkshire Hathaway has invested over $9 billion in airlines.
Although he didn't say exactly what airlines he's adding more to in 2017, he didn't deny that he's continuing to increase his bet on the industry. When he was asked if he's spending more money on Apple and airlines this year, he said that was a "good guess."
Clearly, he thinks airline stocks are going to go up, not down, and with unemployment low and incomes rising, it's not a stretch to to think that airlines like Delta will continue to fill seats. If so, these companies could reward investors with bigger profits and, in turn, higher dividend payments.
For instance, Delta Air Lines' goal is to return about 70% of its annual free cash flow to investors, and while a lot of that cash flow could be used for share buybacks, a low dividend payout ratio and cash dividend payout ratio suggest there's room to increase quarterly dividend payments, too.
Currently, Delta Air Lines' dividend payout ratio -- or the percentage of earnings paid to shareholders in dividends -- is less than 12%. American Airlines and Southwest's ratios are even lower. That's pretty low when you consider that other big companies are paying out far more to investors. For example, General Electric 's payout ratio is 75%.
With Warren Buffett owning a big and potentially growing position in airlines, and an opportunity for investors to pocket bigger dividend payments, it might be time to buy stock in these companies.
10 stocks we like better than Delta Air Lines
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Delta Air Lines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 6, 2017
Todd Campbell owns shares of Apple and General Electric. His clients may have positions in the companies mentioned. The Motley Fool owns shares of and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool owns shares of General Electric and has the following options: long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the fourth quarter, Buffett added a bunch of Apple Inc. (NASDAQ: AAPL) and Delta Air Lines (NYSE: DAL) to his portfolio, and recently, he told CNBC that he's spent about $20 billion of Berkshire Hathaway's cash stockpile buying these and other stocks since "a little before the election." If the U.S. economy continues to strengthen, then fuller flights will help keep prices firm, and investments in fuel-efficient airplanes will drop even more money to the bottom line. With Warren Buffett owning a big and potentially growing position in airlines, and an opportunity for investors to pocket bigger dividend payments, it might be time to buy stock in these companies.
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However, that stake climbed significantly throughout the remainder of the year, and exiting December, Berkshire Hathaway's Apple position was worth about $7.7 billion, making it Buffett's sixth biggest individual stock position. With operating cash flow of $27 billion allowing management to return $15 billion to investors last year through share buybacks and dividend payments, and business humming along nicely, it wouldn't be surprising if Apple returns even more money to investors this year. As of December, Berkshire Hathaway owned 60 million shares in Delta Air Lines worth roughly $3 billion, plus he owns about $2.5 billion in Southwest Airlines , and about $2.1 billion in each of American Airlines and United Continental Holdings .
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In the fourth quarter, Buffett added a bunch of Apple Inc. (NASDAQ: AAPL) and Delta Air Lines (NYSE: DAL) to his portfolio, and recently, he told CNBC that he's spent about $20 billion of Berkshire Hathaway's cash stockpile buying these and other stocks since "a little before the election." With operating cash flow of $27 billion allowing management to return $15 billion to investors last year through share buybacks and dividend payments, and business humming along nicely, it wouldn't be surprising if Apple returns even more money to investors this year. As of December, Berkshire Hathaway owned 60 million shares in Delta Air Lines worth roughly $3 billion, plus he owns about $2.5 billion in Southwest Airlines , and about $2.1 billion in each of American Airlines and United Continental Holdings .
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With operating cash flow of $27 billion allowing management to return $15 billion to investors last year through share buybacks and dividend payments, and business humming along nicely, it wouldn't be surprising if Apple returns even more money to investors this year. Overall, Buffett's Berkshire Hathaway has invested over $9 billion in airlines. With Warren Buffett owning a big and potentially growing position in airlines, and an opportunity for investors to pocket bigger dividend payments, it might be time to buy stock in these companies.
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7621.0
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2017-03-05 00:00:00 UTC
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7 Ways Warren Buffett Blasted the Airline Industry -- Before Investing Billions There
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AAL
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https://www.nasdaq.com/articles/7-ways-warren-buffett-blasted-airline-industry-investing-billions-there-2017-03-05
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In 1989, Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett decided to buy preferred stock in USAir, a predecessor to today's American Airlines (NASDAQ: AAL) . The investment quickly went downhill. For 25 years thereafter, Buffett repeatedly criticized the airline industry as being a terrible place to invest.
Thus, most investors were shocked when Berkshire Hathaway revealed that it had invested in several airlines last summer. Buffett continued his buying spree in the fall, and Berkshire Hathaway now owns roughly 7%-9% of each of the four largest U.S. airlines. These investments are collectively worth about $9 billion .
Here are seven different criticisms that Warren Buffett leveled at the airline industry before his sudden change of heart last year.
Airlines have been perennial money losers
Buffett's remark that investors would have saved billions of dollars if someone had shot down the Wright Brothers' plane is perhaps his best-known criticism of the airline industry. Indeed, just in the 2001-2005 period, U.S. airlines collectively lost $40 billion.
Unfortunately, that period of deep losses wasn't an isolated incident. For decades, airlines across the world have tottered between profitability and losses. In most cases, the losses have outweighed the profits over time.
The lowest-cost carriers can disrupt rivals
The U.S. airline industry was disrupted in the early 1990s by the rapid growth of low-cost carriers. These airlines undercut the legacy carriers' fares. Legacy carriers were forced to match those prices -- otherwise, their customer bases would have melted away. However, this led to big losses across the industry, as the legacy carriers' costs were way too high.
In the past 25 years, legacy carriers have reduced their costs significantly. But unit costs are starting to creep up again. Meanwhile, a new crop of ultra-low-cost carriers -- led by Spirit Airlines (NASDAQ: SAVE) -- is growing rapidly, driving fares down even further. Time will tell whether the major airlines can avoid a repeat of their early-1990s meltdown.
Irrational competition is an even bigger danger
Another one of Buffett's key insights about the airline industry was that one or two irrational competitors could drag down the entire industry. Price wars can rarely be contained.
This fact has reasserted itself recently. American Airlines has led the way in matching Spirit Airlines' low fares since 2015 in order to avoid losing market share. The resulting fare war has even spread beyond the markets that Spirit and its fellow ultra-low-cost carriers serve. This has damaged the legacy carriers' margins.
Periods of profitability can prove fleeting
Today's airline investors take comfort from the industry's consistent profitability since 2010. However, this isn't the first long run of airline profitability in history. (To be fair, though, profit margins are much higher than during previous periods of industry profitability.)
The airlines of the 1980s had especially high cost structures. But even today's leaner legacy carriers face a severe cost disadvantage. On average, their non-fuel unit costs are nearly double those of Spirit Airlines. This could come back to haunt them if consumers begin to accept ultra-low-cost carriers' no-frills service.
When the airline industry is bad, it's really bad
Another problem in the airline industry is that one bankruptcy can lead to another. If a major airline runs into trouble, it can use the bankruptcy process to reduce its costs and get relief from debt that it may have taken on to fund its expansion. It can then use its lower cost structure to undercut other airlines on price -- potentially forcing them to seek bankruptcy restructurings of their own to regain an even footing.
Too many variables to forecast results
The volatility of airlines' earnings is another factor that can confound investors. Even at the time that he invested in USAir, Buffett knew he couldn't forecast the company's future earnings; he was just relying on its track record and the extra security of holding preferred stock.
Airline executives have shown themselves to be no better at forecasting their earnings. To give just one example, American Airlines CEO Doug Parker stated in late 2015 that the company's profit margin would probably decline in 2016 before bouncing back in 2017. American's adjusted pre-tax margin did sink by 2.7 percentage points last year. But analysts expect the company's profit margin to fall once again in 2017.
Consolidation isn't necessarily a fix
Even after airlines' profitability started to rise a few years ago, Buffett wasn't convinced that the upturn would last. As he acerbically pointed out at Berkshire Hathaway's 2013 annual meeting, every previous airline industry upturn -- of which there have been many -- has been followed by a plunge deep into the red.
Thus, Buffett wasn't convinced that industry consolidation had fundamentally altered the airline industry's long-term outlook.
Is this time different?
Clearly, Warren Buffett has changed his opinion about airline stocks. Indeed, consolidation has helped to reduce irrational forms of competition, at least somewhat. Furthermore, there is more differentiation within the industry today, with the legacy carriers focusing on business travelers while most low-fare carriers have leisure-oriented route networks.
Nevertheless, some of his previous criticisms of the airline industry still stand. Given that Buffett was wrong about the airlines in 1989, investors shouldn't ignore the possibility that he's wrong about them now, too.
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*Stock Advisor returns as of February 6, 2017
Adam Levine-Weinberg owns shares of Spirit Airlines. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Spirit Airlines. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In 1989, Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett decided to buy preferred stock in USAir, a predecessor to today's American Airlines (NASDAQ: AAL) . It can then use its lower cost structure to undercut other airlines on price -- potentially forcing them to seek bankruptcy restructurings of their own to regain an even footing. Even at the time that he invested in USAir, Buffett knew he couldn't forecast the company's future earnings; he was just relying on its track record and the extra security of holding preferred stock.
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In 1989, Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett decided to buy preferred stock in USAir, a predecessor to today's American Airlines (NASDAQ: AAL) . Meanwhile, a new crop of ultra-low-cost carriers -- led by Spirit Airlines (NASDAQ: SAVE) -- is growing rapidly, driving fares down even further. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares).
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In 1989, Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett decided to buy preferred stock in USAir, a predecessor to today's American Airlines (NASDAQ: AAL) . Airlines have been perennial money losers Buffett's remark that investors would have saved billions of dollars if someone had shot down the Wright Brothers' plane is perhaps his best-known criticism of the airline industry. American Airlines has led the way in matching Spirit Airlines' low fares since 2015 in order to avoid losing market share.
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In 1989, Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett decided to buy preferred stock in USAir, a predecessor to today's American Airlines (NASDAQ: AAL) . (To be fair, though, profit margins are much higher than during previous periods of industry profitability.) Thus, Buffett wasn't convinced that industry consolidation had fundamentally altered the airline industry's long-term outlook.
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7622.0
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2017-03-03 00:00:00 UTC
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United Continental Issues Impressive Operational Update
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AAL
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https://www.nasdaq.com/articles/united-continental-issues-impressive-operational-update-2017-03-03
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Chicago-based United Continental HoldingsUAL presented a rosy picture at the J.P. Morgan Global High Yield & Leveraged Finance Conference Presentation. The company expects passenger revenue per available seat miles (PRASM) to continue improving on a sequential basis in 2017 as well, very similar to 2016. In fact, the metric is expected in the range of -1% to +1% (year over year) in the first quarter of 2017.
Moving forward, United Continental is aiming to return to unit revenue growth. Notably, the carriers like American Airlines Group AAL and Alaska Air Group ALK had already displayed growth with respect to unit revenues in the fourth quarter itself. Woes pertaining to this key metric seem to be easing.
Apart from unit revenues, United Continental also sounded bullish about the prospects of its "Basic Economy" product, which was launched recently. The move to introduce the product (cheapest tickets at the carrier) is expected to provide customers with more choice, thereby boosting revenues to the tune of $200 million in 2017. We note that American Airlines has also started selling "Basic Economy Fares", as airline heavyweights seek to combat competition of low-cost carriers like Spirit Airlines SAVE .
At the presentation, United Continental stated that it expects non-fuel unit costs to increase in the band of 3.5% to 4.5% in 2017, as the recent labor deals inked by the company have caused labor costs to surge. However, the rise in unit costs (non-fuel) is expected to be less than 1% (year-over-year) in the 2018-2020 time frame, thereby assuming an annual capacity growth of 1.5%.
Price Performance
Despite the presentation, shares of the carrier declined over 2% on Mar 2 to $73.28. However, shares of United Continental have outperformed the Zacks categorized Transportation-Airline industry over the last one year. While the stock has appreciated 27.1% in the last one year, the industry gained just 19.3% in the same period.
Zacks Rank
Currently, United Continental holds a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Notably, the carriers like American Airlines Group AAL and Alaska Air Group ALK had already displayed growth with respect to unit revenues in the fourth quarter itself. Click to get this free report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company expects passenger revenue per available seat miles (PRASM) to continue improving on a sequential basis in 2017 as well, very similar to 2016.
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Notably, the carriers like American Airlines Group AAL and Alaska Air Group ALK had already displayed growth with respect to unit revenues in the fourth quarter itself. Click to get this free report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank Currently, United Continental holds a Zacks Rank #2 (Buy).
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Notably, the carriers like American Airlines Group AAL and Alaska Air Group ALK had already displayed growth with respect to unit revenues in the fourth quarter itself. Click to get this free report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. At the presentation, United Continental stated that it expects non-fuel unit costs to increase in the band of 3.5% to 4.5% in 2017, as the recent labor deals inked by the company have caused labor costs to surge.
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Notably, the carriers like American Airlines Group AAL and Alaska Air Group ALK had already displayed growth with respect to unit revenues in the fourth quarter itself. Click to get this free report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Moving forward, United Continental is aiming to return to unit revenue growth.
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7623.0
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2017-03-01 00:00:00 UTC
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United Airlines Launches an Aggressive Domestic Expansion
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AAL
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https://www.nasdaq.com/articles/united-airlines-launches-aggressive-domestic-expansion-2017-03-01
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United Continental (NYSE: UAL) is finally tired of surrendering market share to Delta Air Lines (NYSE: DAL) , American Airlines (NASDAQ: AAL) , and a host of smaller rivals. Under its new management team, United plans to fight back by growing and restructuring its domestic route network to enable more connecting opportunities for customers.
It's important for United Airlines to catch up with Delta and American in the domestic market. That said, United's attempts to gain market share will not go unchallenged. As a result, this strategy shift isn't likely to reverse the recent declines in United's profitability.
The importance of connecting traffic
United Airlines has hubs in the five largest U.S. air travel markets: New York, Los Angeles, San Francisco, Chicago, and Washington, D.C. Yet United revealed at its investor day last fall that the carrier's Denver hub is actually its most profitable.
This highlights the importance of connecting traffic for a hub-and-spoke airline like United. It's true that for travelers flying between major cities, carriers offering nonstop service can charge higher fares. But some of the most profitable customers are those connecting at a hub to travel to or from a small city. That's because most small cities lack low-cost carrier service. American, Delta, and United are often the only options.
There are three key aspects to running a successful connecting hub. First, you need to offer lots of flights to numerous destinations. Second, you need a "banked" schedule with tightly spaced waves of flights, in order to minimize connection times. Third, you need to have low airport costs.
Airport costs are largely out of an airline's control, at least once it has selected its hubs. However, United is working hard to fix what it can control.
New routes and better connections
United Airlines will build up its hubs by adding dozens of new flights starting this summer. This includes adding four more small cities to its route network: Champaign/Urbana, Illinois; Columbia, Missouri; Rochester, Minnesota; and Santa Rosa, California. United will also begin summer service on six domestic routes and offer more frequent flights on 15 other routes.
It will implement these flight additions while keeping its overall capacity growth modest. In the domestic market, United plans to increase capacity 1.5%-2.5% year over year in 2017.
Meanwhile, United Airlines is "rebanking" its flight schedules, particularly at its Newark and Chicago hubs. This will allow it to compete more effectively with American Airlines' hubs in Philadelphia and Chicago, respectively.
Regaining share won't be easy
Bulking up its domestic route network is essential to United's long-term competitiveness. But Delta Air Lines and American Airlines -- not to mention other competitors like Southwest Airlines -- aren't likely to let United Airlines reclaim its "fair share" of the domestic market without putting up a fight.
For example, United plans to add capacity in Atlanta and Detroit, two markets where Delta has absolutely dominant hubs. This could provoke a fare war. Similarly, United is starting service from Chicago to several markets where American Airlines currently has a monopoly. The two carriers have been in a long-running competitive battle in Chicago, so American is likely to respond in some way to United's growth there.
Thus, United may face severe fare competition in some markets as it tries to elbow its way into other airlines' territory. This could cause some short-term margin compression, which is unfortunate because United's profit margin is already under pressure. For Q1, it expects to report an adjusted pre-tax margin of just 0.5%-2.5%, down from 8.4% a year ago.
Additionally, rebanking flights will push unit costs somewhat higher. United will need more staff at its hubs to cope with higher peaks of activity.
Investors appear to be excited about the aggressive approach of United's new management team. United shares have roughly doubled since bottoming out in late June. However, it could take years for the company's new strategy to pay off -- assuming it succeeds. Turning around United Continental's domestic performance may be a lot tougher than investors currently expect.
10 stocks we like better than United Continental Holdings
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and United Continental Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 6, 2017
Adam Levine-Weinberg owns shares of Delta Air Lines. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Continental (NYSE: UAL) is finally tired of surrendering market share to Delta Air Lines (NYSE: DAL) , American Airlines (NASDAQ: AAL) , and a host of smaller rivals. Under its new management team, United plans to fight back by growing and restructuring its domestic route network to enable more connecting opportunities for customers. The importance of connecting traffic United Airlines has hubs in the five largest U.S. air travel markets: New York, Los Angeles, San Francisco, Chicago, and Washington, D.C.
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United Continental (NYSE: UAL) is finally tired of surrendering market share to Delta Air Lines (NYSE: DAL) , American Airlines (NASDAQ: AAL) , and a host of smaller rivals. The importance of connecting traffic United Airlines has hubs in the five largest U.S. air travel markets: New York, Los Angeles, San Francisco, Chicago, and Washington, D.C. In the domestic market, United plans to increase capacity 1.5%-2.5% year over year in 2017.
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United Continental (NYSE: UAL) is finally tired of surrendering market share to Delta Air Lines (NYSE: DAL) , American Airlines (NASDAQ: AAL) , and a host of smaller rivals. The importance of connecting traffic United Airlines has hubs in the five largest U.S. air travel markets: New York, Los Angeles, San Francisco, Chicago, and Washington, D.C. But Delta Air Lines and American Airlines -- not to mention other competitors like Southwest Airlines -- aren't likely to let United Airlines reclaim its "fair share" of the domestic market without putting up a fight.
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United Continental (NYSE: UAL) is finally tired of surrendering market share to Delta Air Lines (NYSE: DAL) , American Airlines (NASDAQ: AAL) , and a host of smaller rivals. But some of the most profitable customers are those connecting at a hub to travel to or from a small city. But Delta Air Lines and American Airlines -- not to mention other competitors like Southwest Airlines -- aren't likely to let United Airlines reclaim its "fair share" of the domestic market without putting up a fight.
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2017-03-01 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Delta Air Lines, American Airlines Group, Alaska Group and SkyWest
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-delta-air-lines-american-airlines-group-alaska-group
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For Immediate Release
Chicago, IL -March 01, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), Alaska Group (NYSE: ALK - Free Report ) and SkyWest Inc. (NASDAQ: SKYW - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday's Analyst Blog:
2 Airline Stocks to Add Post-Q4 Earnings Season
The fourth-quarter 2016 earnings season is over as far as the airline space is concerned. Stocks in the space, which seem to be back in favor after being grounded for most of 2016, fared quite impressively on the earnings front. Quite a few key segment participants reported better-than-expected earnings in the quarter.
Lowered Bar Helped Earnings Beats
The string of positive surprises was no doubt facilitated by reduced expectations. The lowered bar made it easier for companies to beat the Zacks Consensus Estimate. For example, the Zacks Consensus Estimate for United Continental in the fourth quarter was $1.65, much lower than the year-ago figure of $2.59 per share.
Although things look rosy on the surface, a deeper analysis of the airline results in the quarter tells a different story. Despite a number of companies beating earnings in the quarter, year-over-year growth in the bottom-line front was hard to come by.
High Labor Costs Distorted Earnings Picture
The primary factor which made bottom-line growth almost non-existent was escalated labor costs. Many companies are inking deals with various labor groups, hence costs pertaining to the factor are spiking.
For example, at Delta Air Lines (NYSE: DAL - Free Report ), earnings declined almost 30% year over year due to higher costs. Consolidated unit cost or cost per available seat mile (CASM), including profit sharing, increased 10.6%, mainly due to the agreement with pilots that was ratified in December. Also, at Spirit Airlines, earnings per share declined 24.5% on a year-over-year basis. Increased labor costs contributed to the decline.Additionally, the rise in fuel costs in the quarter also hurt the bottom-line.
Return of Capacity Woes?
Another factor to hurt airlines in the recent past is capacity overexpansion. The fears were re-ignited when American Airlines Group (NASDAQ: AAL - Free Report ), in its fourth quarter conference call hinted at increasing domestic capacity but reducing the same internationally in 2017.
The January traffic reports of most carriers also hint at capacity expansion outweighing traffic growth, thereby leading to a fall in load factor (percentage of seats filled with passengers). Generally, carriers are forced to reduce fares as unit revenues decline at the face of capacity outpacing demand growth.
Revenue Picture Brighter
With carriers struggling to come up with earnings growth due to higher costs, the top-line picture was quite encouraging. Unit revenues, which hurt airlines for quite some time, are on the mend. Carriers like American Airlines and Alaska Group (NYSE: ALK - Free Report ) displayed positive unit revenues in the quarter.
Moreover, other carriers too came up with bullish projections with respect to the metric. The improved top-line scenario contributed to many airline heavyweights like American Airlines and Delta Air Lines reporting better-than-expected revenues, despite failing to beat earnings estimates.
Given this bullish backdrop, more and more carriers are expected to return to unit revenue growth in 2017. Moreover, the scenario of rising oil prices in 2017 provides airlines the scope to raise air fares, thereby boosting revenues.
Our Choices
In a season where bottom-line growth was dull, airline stocks which managed to achieve the same should be considered as creditable options for investing. Apart from registering earnings growth, the stocks that we have considered have also expanded on the top-line front. We have pruned the list further by considering companies which have reported better-than-expected revenues and earnings.
Naturally, a stock that satisfies all the above criteria is likely to be highly sought after by investors. In addition to a favorable Zacks Rank the stocks have a sound VGM Score . Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores.
Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM score. Our research shows that stocks with a VGM Score of 'A' or 'B' when combined with a Zacks Rank #1 (Strong Buy) or #2 (Buy) offer the best upside potential. You can see the complete list of today's Zacks #1 Rank stocks here.
SkyWest Inc. (NASDAQ: SKYW - Free Report ), through its subsidiaries, operates a regional airline in the U.S. The company has a Zacks Rank #2 and a VGM score of "A." The St. George, UT-based carrier's earnings (on an adjusted basis) of 54 cents per share were 3 cents above the Zacks Consensus Estimate. Earnings also improved 10.2% from the year-ago figure. Quarterly revenues of $758 million beat the Zacks Consensus Estimate of $753 million and also increased marginally on a year-over-year basis.
Alaska Air Group has a Zacks Rank #2 and a VGM score of "A." The carrier's fourth quarter earnings of $1.56 per share were 15 cents above the Zacks Consensus Estimate.
Moreover, the bottom line expanded 6.85% on a year-over-year basis. Revenues came in at $1.52 billion, beating the Zacks Consensus Estimate of $1.43 billion. The top line grew 11% on a year-over-year basis.
Both the stocks have outperformed the Zacks- categorized Transportation- Airline industry over the last one year. SkyWest and Alaska Air Group have returned 98.9% and 32.4%, respectively over the last one year, compared with the industry's gain of 20% in the period.
What's Ahead for the Sector?
Adding the above-mentioned stocks to one's portfolio is expected to result in healthy returns as the airline space in general is in for good times.
This is augmented by its attractive valuation. Going by the EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) ratio, which is often used to value airline stocks, given their significant debt levels and fixed costs,the industry appears anything but expensive currently.
The industry currently has a trailing 12-month EV/EBITDA ratio of 5.54, which is favorable compared to what the industry saw in the last three years. The ratio is almost near the low end of 4.6 during the period.
Additionally, this compares favorably with the market at large, as the current EV/EBITDA for the S&P 500 is at 10.62 and the median level is 9.7. The industry's favorable positioning compared to the overall market certainly hints at more upside going forward. Also, the fact Warren Buffett - one of the most revered investors of all times - is rooting for airline stocks after quite a long time highlights the rosy future for stocks in the space.
The improving scenario for the airline industry can be well gauged from the fact that the Zacks Industry Rank for the Transportation- Airline space is a bullish 59. The favorable rank places the industry in the top 26% of the 250+ groups enlisted. The improving scenario for the airline industry can be well gauged from the fact that the Zacks Industry Rank for the space has improved immensely, given the industry's 200+ rank only a few months ago.
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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The fears were re-ignited when American Airlines Group (NASDAQ: AAL - Free Report ), in its fourth quarter conference call hinted at increasing domestic capacity but reducing the same internationally in 2017. Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), Alaska Group (NYSE: ALK - Free Report ) and SkyWest Inc. (NASDAQ: SKYW - Free Report ). Get the full Report on DAL - FREE Get the full Report on AAL- FREE Get the full Report on ALK - FREE Get the full Report on SKYW - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), Alaska Group (NYSE: ALK - Free Report ) and SkyWest Inc. (NASDAQ: SKYW - Free Report ). Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report To read this article on Zacks.com click here. The fears were re-ignited when American Airlines Group (NASDAQ: AAL - Free Report ), in its fourth quarter conference call hinted at increasing domestic capacity but reducing the same internationally in 2017.
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Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), Alaska Group (NYSE: ALK - Free Report ) and SkyWest Inc. (NASDAQ: SKYW - Free Report ). Get the full Report on DAL - FREE Get the full Report on AAL- FREE Get the full Report on ALK - FREE Get the full Report on SKYW - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), Alaska Group (NYSE: ALK - Free Report ) and SkyWest Inc. (NASDAQ: SKYW - Free Report ). The fears were re-ignited when American Airlines Group (NASDAQ: AAL - Free Report ), in its fourth quarter conference call hinted at increasing domestic capacity but reducing the same internationally in 2017. Get the full Report on DAL - FREE Get the full Report on AAL- FREE Get the full Report on ALK - FREE Get the full Report on SKYW - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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2017-02-28 00:00:00 UTC
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United Prepares For Take Off With New Destinations, Services and Fare Options
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AAL
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https://www.nasdaq.com/articles/united-prepares-take-new-destinations-services-and-fare-options-2017-02-28
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United Continental Holdings, Inc. UAL , the holding company for United Airlines and Continental Airlines, announced on Monday that they are expanding their domestic and international services after introducing the New Basic Economy fare option for Twin Cities travelers last week.
The Chicago-based United Airlines said it is expanding and adding a total of 31 new services to domestic and international destinations. One of the newly added international services is the seasonal daily flight between San Francisco International Airport and Munich Airport. On the domestic side, United is adding 13 new cities to its services, including Champaign/Urbana, IL, Columbia, MO, Cincinnati, OH and Rochester, MN. The airline also increased the number of daily flights from 15 existing destinations.
The updated domestic services will begin in June. This move looks to attract more passengers with more travel options and optimal flight times.
"Starting this summer we're offering more flights, to more destinations at more convenient times than in recent memory," said Scott Kirby, president of United Airlines. "And with bigger and more modern aircraft for many of our flights, we'll be getting you to the moments that matter most - relaxed and ready to go."
Prior to the schedule updates, United introduced the option of Basic Economy Fare, mimicking the pricing strategy of budget airlines. Starting on Feb. 21, customers traveling between Minneapolis/St. Paul and any of United's seven U.S. hubs (Chicago O'Hare, Denver, Houston Bush International, Los Angeles, New York/Newark, San Francisco and Washington Dulles) have an additional fare option, Basic Economy, which posts the lowest fare.
"The launch of our Basic Economy product is transformational," said Kirby. "Offering customers seeking the most budget-conscious fares United's comfortable and reliable travel experience across our unmatched network of destinations."
United expects to expand the Basic Economy Fare option across the U.S. eventually. The lowest fare option is aimed at the market of customers that look for discounted airfares like Spirit Airlines SAVE and Frontier Airlines.
United isn't the only large airline that offers additional fare options. Both American Airline AAL and Delta Air Lines DAL also put out similar pricing strategies. These large airlines are offering cut-rate prices and similar restrictions (use of overhead bins and advance seat assignment) but are hoping the customers will be willing to pay more to retain those privileges back.
If the expansion and pricing strategy work out, it could put a stop on United's falling revenue. For fiscal 2016, United reported annual revenue of $36.6 billion, which is a 3.5% decrease from the year-ago period. The company also saw a 2.7% decrease in annual revenue when comparing fiscal 2015 to 2014.
United opens the market in red with 1% drop to $74.44 per share. The company is Zacks Rank #2 (Buy).
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Both American Airline AAL and Delta Air Lines DAL also put out similar pricing strategies. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. "Starting this summer we're offering more flights, to more destinations at more convenient times than in recent memory," said Scott Kirby, president of United Airlines.
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Both American Airline AAL and Delta Air Lines DAL also put out similar pricing strategies. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental Holdings, Inc. UAL , the holding company for United Airlines and Continental Airlines, announced on Monday that they are expanding their domestic and international services after introducing the New Basic Economy fare option for Twin Cities travelers last week.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Both American Airline AAL and Delta Air Lines DAL also put out similar pricing strategies. United Continental Holdings, Inc. UAL , the holding company for United Airlines and Continental Airlines, announced on Monday that they are expanding their domestic and international services after introducing the New Basic Economy fare option for Twin Cities travelers last week.
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Both American Airline AAL and Delta Air Lines DAL also put out similar pricing strategies. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. "Starting this summer we're offering more flights, to more destinations at more convenient times than in recent memory," said Scott Kirby, president of United Airlines.
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2017-02-28 00:00:00 UTC
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Why Is American Airlines (AAL) Down 6.7% Since the Last Earnings Report?
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AAL
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https://www.nasdaq.com/articles/why-is-american-airlines-aal-down-6.7-since-the-last-earnings-report-2017-02-28
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It has been about a month since the last earnings report for American Airlines Group, Inc.AAL . Shares have lost about 6.7% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to their next earnings release, or is the stock 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 drivers.
Fourth Quarter Earnings
American Airlines Group 's fourth quarter 2016 earnings (adjusted) of $0.92 per share were in line with the Zacks Consensus Estimate. Quarterly earnings decreased significantly year over year. Higher costs hurt the bottom line.
Revenues of $9,789 million were 1.7% above the year-ago figure and edged past the Zacks Consensus Estimate of $9,765.5 million. Total revenue per available seat miles (TRASM) improved 1.3% in the reported quarter. This was the first quarter in which the metric grew on a year-over-year basis since the fourth quarter of 2014. Consolidated yield improved 1.8%. Passenger revenue per available seat miles improved 0.2% . Traffic was down 1.3%, whereas capacity was up 0.4%. This resulted in relatively empty planes. Consolidated load factor (percentage of seats filled by passengers) declined as traffic contracted and capacity expanded. Load factor deteriorated to 81.4% from the comparable year-ago figure of 82.7%.
Total operating expenses climbed 5.4% year over year to $9 billion primarily due to an increase in labor costs. Expenses pertaining to salaries and benefits surged 17.4%. Consolidated operating costs per Available Seat Mile (CASM: excluding special items) increased 7.6%.
During the quarter, the company returned $606 million to its shareholders through the payment of $52 million in dividends and buyback of shares worth $554 million. Furthermore, the carrier also declared a dividend of $0.10 per share. The dividend will be paid on Feb 27, 2017, to the shareholders as of Feb 13. The carrier also approved a new $2 billion buyback program, which is scheduled to expire on Dec 31, 2018. The carrier has returned more than $9.6 billion to stockholders through share repurchases and dividends since mid-2014. We are impressed by the company's shareholder-friendly initiatives.
Outlook
The company expects TRASM for the first quarter of 2017 to be up in the band of 2.5-4.5% (year over year). American Airlines expects pre-tax margin excluding special items in the first quarter to be approximately in the range of 3-5%. Consolidated CASM (excluding fuel and special items) is projected to increase 9% in the first quarter. The metric is expected to increase around 4% in 2017. Capacity (system) in 2017 is projected to increase 1% in 2017.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been four revisions lower for the current quarter. In the past month, the consensus estimate has shifted 22.38% downward due to these changes.
American Airlines Group, Inc. Price and Consensus
American Airlines Group, Inc. Price and Consensus | American Airlines Group, Inc. Quote
VGM Scores
At this time, American Airlines' stock has a subpar Growth Score of 'D', however its Momentum is doing a bit better with a 'C'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregte VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Notably the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It has been about a month since the last earnings report for American Airlines Group, Inc.AAL . Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. 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 drivers.
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It has been about a month since the last earnings report for American Airlines Group, Inc.AAL . Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Fourth Quarter Earnings American Airlines Group 's fourth quarter 2016 earnings (adjusted) of $0.92 per share were in line with the Zacks Consensus Estimate.
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It has been about a month since the last earnings report for American Airlines Group, Inc.AAL . Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Fourth Quarter Earnings American Airlines Group 's fourth quarter 2016 earnings (adjusted) of $0.92 per share were in line with the Zacks Consensus Estimate.
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It has been about a month since the last earnings report for American Airlines Group, Inc.AAL . Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Fourth Quarter Earnings American Airlines Group 's fourth quarter 2016 earnings (adjusted) of $0.92 per share were in line with the Zacks Consensus Estimate.
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7627.0
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2017-02-28 00:00:00 UTC
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7 Stocks That Will Hit All-Time Highs in 2017
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AAL
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https://www.nasdaq.com/articles/7-stocks-that-will-hit-all-time-highs-in-2017-2017-02-28
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Broad markets continue to perform well in 2017. The Dow Jones Industrial Average , as silly as it is , has set an all-time record for consecutive closing highs. The S&P 500 similarly is at a record. Consumer confidence and other macro indicators, too, are flashing green.
Source: Shutterstock
Perhaps most bullish is the fact that many investors remain skeptical of this year's performance, creating a classic "wall of worry" situation that usually implies the end markets have more room to run.
With industries like retail still normalizing after election-year disruption, and signs of strength in a number of cyclicals, there's likely still more upside in broad markets.
8 of the Most Overrated Stocks on Wall Street Right Now
Should that upside come, equities across the board should benefit. But for these seven stocks, further buying by investors not only would push the stocks higher, but set new records of their own.
Stocks Hitting All-Time Highs: Carnival (CCL)
Source: Via Carnival
All-Time High: $58.98, Jan. 19, 2005
Carnival Corp (NYSE: CCL ) stockholders have waited a long time for CCL to return to its all-time highs. Back in early 2005, the economy was roaring, and CCL had quadrupled in less than five years. By 2009 - amid the financial crisis - CCL stock had given back most of those gains, as fearful travelers stayed home.
But Carnival has steadily rebounded from the crisis. CCL now trades just 5% off that all-time high and seems likely to clear $59 in 2017. The stock is hardly expensive, trading at just 15 times earnings. The company announced this month that it would begin a full series of sailings to Cuba in June. Continued economic strength in the U.S. should help demand, and the strong U.S. dollar has cost benefits for Carnival as well. (It does hurt international revenue, but that remains a minority of Carnival sales.)
Again, it's been a long wait for a rebound for CCL shareholders, particularly those who bought at 2005 peaks. But that wait seems likely to end soon.
Stocks Hitting All-Time Highs: Emerson (EMR)
Source: Shutterstock
All-Time High: $70.66, Dec. 30, 2013
It may be asking a bit too much for Emerson Electric Co. (NYSE: EMR ) to hit its all-time high this year. With EMR stock trading around $60, it needs another 17% appreciation to surpass late-2013 levels.
Then again, EMR is up more than 20% just since early November, buoyed by two straight strong earnings reports and post-election optimism. The stock has pulled back somewhat oddly over the past few sessions after hitting a 52-week high near $64, but EMR might have just needed a breather.
Fiscal 2017 guidance of $2.47 to $2.62 does mean that EMR needs a pretty hefty multiple to reach that all-time high: about 27 times, even at the high-end of guidance. But its first quarter beat both the company's expectations and Street consensus handily, and another strong quarter or two might increase both FY17 guidance and EMR's earnings multiple.
4 Media Stocks That Will Win BIG on Fake News Accusations
Emerson remains a long-term play on automation and a consistent, if sometimes volatile, performer. It's a classic cyclical play, and if broad markets and macro sentiment continue to hold up, EMR may again take out an all-time high this year - or in 2018 at the latest.
Stocks Hitting All-Time Highs: American Airlines (AAL)
Source: Oliver Holzbauer via Flickr
All-Time High: $56.20, Jan. 26, 2015
If it's good enough for Warren Buffett, it's good enough for me. The Oracle of Omaha somewhat surprisingly has taken stakes in a number of airlines, including American Airlines Group Inc (NASDAQ: AAL ).
It's not hard to see why. Airlines such as AAL, Southwest Airlines Co (NYSE: LUV ) and Delta Air Lines, Inc. (NYSE: DAL ) finally have stopped waging unproductive price wars. Fuel prices have come down noticeably, boosting margins. And while customers tend to complain about baggage fees and the end of free meals, they also gladly pay up for those services. American and its U.S. Airways brand combined to rake in more than $1.1 billion in baggage fees in 2015, according to government figures .
Like EMR, AAL might have to stretch a bit to retake its all-time highs: the stock needs about a 20% gain from current levels. But AAL also has lagged peers of late - most notably LUV - and a bit of catching up should help AAL stock tremendously. AAL shares actually have declined modestly year-to-date, while Southwest stock is up 16%. Once that gap narrows - and it should - AAL should be ready to fly (get it?) past those early 2015 highs.
Stocks Hitting All-Time Highs: Alibaba (BABA)
Source: Shutterstock
All-Time High: $120, Nov. 13, 2014
It's hard to say whether the problem with Alibaba Group Holding Ltd (NYSE: BABA ) has been that expectations were too high after its September 2014 IPO, or if the market has underappreciated its performance since. In my mind, it's a bit of both.
Certainly, I don't think investors give BABA stock quite enough credit. Alibaba already is one of the largest companies in the world, yet revenue grew 54% in its most recent quarter. Alibaba's dominance of the Chinese market is all but assured at this point, and that market offers much more in the way of growth opportunities than its more developed counterparts.
Like its American peer Amazon.com, Inc. (NASDAQ: AMZN ), Alibaba is building out a commercial cloud business. That looks like a secret weapon for BABA stock, and expands its market opportunity to fast-growing India and even the West. To be sure, there are risks here, but I still believe BABA remains sharply undervalued.
7 Best Stocks to Buy for a Donald Trump Green Light
Analysts at Goldman Sachs Group Inc. (NYSE: GS ) agree, with the firm adding BABA stock to its "Conviction Buy" list with a price target of $135 per share. Should BABA stock near those levels, it would create a new all-time high - and I think it should trade at those levels already.
Stocks Hitting All-Time Highs: ServiceMaster (SERV)
Source: Shutterstock
All-Time High: $42.21, Jan. 29, 2016
Servicemaster Global Holdings Inc (NYSE: SERV ) seems to struggle every time it clears the $40 mark, having done so repeatedly over the past 15 months, including this month. But 2017 seems like the year when SERV stock will finally break through.
ServiceMaster's Terminix business is one of the steadier consumer-facing businesses around. But both SERV's American Home Shield home warranty division and its Merry Maids business should benefit from a stronger economy and higher consumer confidence. With resistance having held twice just above $40, it seems like this year, SERV is due.
Stocks Hitting All-Time Highs: Archer Daniels (ADM)
Source: GothamNurse Via Flickr
All-Time High: $53.91, Dec. 4, 2014
One of the world's premier agricultural concerns, Archer Daniels Midland Company (NYSE: ADM ) has struggled with low crop prices and weak farm income over the past few years. And, to be fair, ADM is coming off a rather weak Q4 earnings report earlier this month, which sent ADM stock down in response.
But the stock has rebounded rather sharply of late, and with good reason. Inflation expectations are rising, which bodes well for U.S. farm prices. After three consecutive years of declining farm income, the USDA is projecting an increase in 2017. There's certainly a "well, it can't get much worse" sentiment in many rural communities, and it does appear that supply and demand should finally come into better balance this year.
7 Ultra-Cheap Value Stocks to Buy Now
ADM would be a prime beneficiary of a rebound in farm income and crop prices. And another 15% gain in ADM shares would allow it to retake all-time highs, reached just before it became clear that crop weakness would be a multi-year trend. In the meantime, ADM offers a 2.8% dividend yield, and is a "Dividend Aristocrat." So even if ADM has to wait a bit longer to retake that all-time high, investors can sleep well at night.
Stocks Hitting All-Time Highs: Omnicell (OMCL)
Source: Shutterstock
All-Time High: $40.80, July 23, 2015
Omnicell, Inc. (NASDAQ: OMCL ) looks to be one of the few healthcare stocks likely to emerge unscathed from any potential changes to the Affordable Care Act (known colloquially as Obamacare). There's a simple reason for that: Omnicell is simply too valuable to the healthcare ecosystem.
Omnicell manages medicines and medical supplies for manufacturers and providers, while also working to ensure that patients take their medicines. The company provides everything from high-tech software and pharmacy automation solutions to basic packaging that makes it easier for patients to remember what pills they've taken, and when.
In the process, Omnicell sales have gone from zero to $700 million in 25 years, and its market cap now sits at nearly $1.4 billion. With the company key for pharmacies such as CVS Health Corp (NYSE: CVS ), there seems little risk of displacement. And with OMCL shares just 7% below their all-time highs from two years ago, a new all-time high seems on the horizon - no matter what happens in Washington.
As of this writing, Vince Martin did not hold a position in any of the aforementioned securities.
The post 7 Stocks That Will Hit All-Time Highs in 2017 appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks Hitting All-Time Highs: American Airlines (AAL) Source: Oliver Holzbauer via Flickr All-Time High: $56.20, Jan. 26, 2015 If it's good enough for Warren Buffett, it's good enough for me. The Oracle of Omaha somewhat surprisingly has taken stakes in a number of airlines, including American Airlines Group Inc (NASDAQ: AAL ). Airlines such as AAL, Southwest Airlines Co (NYSE: LUV ) and Delta Air Lines, Inc. (NYSE: DAL ) finally have stopped waging unproductive price wars.
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Stocks Hitting All-Time Highs: American Airlines (AAL) Source: Oliver Holzbauer via Flickr All-Time High: $56.20, Jan. 26, 2015 If it's good enough for Warren Buffett, it's good enough for me. The Oracle of Omaha somewhat surprisingly has taken stakes in a number of airlines, including American Airlines Group Inc (NASDAQ: AAL ). Airlines such as AAL, Southwest Airlines Co (NYSE: LUV ) and Delta Air Lines, Inc. (NYSE: DAL ) finally have stopped waging unproductive price wars.
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Stocks Hitting All-Time Highs: American Airlines (AAL) Source: Oliver Holzbauer via Flickr All-Time High: $56.20, Jan. 26, 2015 If it's good enough for Warren Buffett, it's good enough for me. The Oracle of Omaha somewhat surprisingly has taken stakes in a number of airlines, including American Airlines Group Inc (NASDAQ: AAL ). Airlines such as AAL, Southwest Airlines Co (NYSE: LUV ) and Delta Air Lines, Inc. (NYSE: DAL ) finally have stopped waging unproductive price wars.
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Stocks Hitting All-Time Highs: American Airlines (AAL) Source: Oliver Holzbauer via Flickr All-Time High: $56.20, Jan. 26, 2015 If it's good enough for Warren Buffett, it's good enough for me. The Oracle of Omaha somewhat surprisingly has taken stakes in a number of airlines, including American Airlines Group Inc (NASDAQ: AAL ). Airlines such as AAL, Southwest Airlines Co (NYSE: LUV ) and Delta Air Lines, Inc. (NYSE: DAL ) finally have stopped waging unproductive price wars.
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2017-02-27 00:00:00 UTC
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American Airlines Investors Should Worry About Leverage
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AAL
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https://www.nasdaq.com/articles/american-airlines-investors-should-worry-about-leverage-2017-02-27
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nan
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For many years, investors viewed the airline industry as being extremely risky. One of the biggest risks is high operating leverage. This refers to the fact that small changes in revenue for an airline tend to drive big changes in earnings.
One important way to mitigate the risk from operating leverage is to be conservative about financial leverage -- or, to put it more simply, debt levels. A company with a strong balance sheet will have an easier time borrowing money in the event of an economic downturn than one that is already overloaded with debt.
Recognizing this, Delta Air Lines (NYSE: DAL) has worked hard over the past seven years to reduce its debt. By contrast, American Airlines (NASDAQ: AAL) has gone on a debt binge in recent years in order to finance heavy capital investments and share repurchases . That makes American Airlines a very risky investment going forward.
Debt falls at Delta but soars at American Airlines
At the end of 2009, Delta Air Lines had adjusted net debt of $17 billion as a result of years of accumulated losses. As its profitability improved in the next few years, it devoted much of its free cash flow to debt reduction. By the end of 2016, adjusted net debt had fallen to just $6.1 billion. Delta aims to reduce this to around $5 billion over the next few years.
American Airlines has produced much less free cash flow than Delta over the past few years, as it has implemented an aggressive fleet replacement plan. Meanwhile, it has returned more than $10 billion to shareholders over the past three years through share buybacks and dividends.
As a result, its debt burden has been rising precipitously. American's gross debt reached $24.3 billion at the end of 2016, up from less than $18 billion just two years earlier. Adjusted net debt -- measured in the same way that Delta measures its debt -- is even higher for American Airlines, at $26.4 billion.
American Airlines executives would argue that while their company has more debt, it also has higher-quality assets -- i.e., newer airplanes. But even with newer airplanes, American hasn't been able to match Delta in terms of profitability in recent years.
American Airlines vs. Delta Air Lines Operating Margin (TTM) data by YCharts .
Breaking the cycle?
American Airlines' cavalier attitude toward debt probably stems from CEO Doug Parker's view that consolidation has fundamentally changed the airline industry. Last year, Parker stated , "We have gotten to the point where we, like other businesses, will have good years and bad years, but the bad years will not be cataclysmic. They will just be less good than the good years."
In other words, he thinks that the airline industry will be much less cyclical than it was in the past. With the top four airlines controlling more than 80% of the domestic market, each one has a strong incentive to carefully manage capacity to match demand. That could potentially blunt the impact of future economic downturns on airline profitability.
If that's the case, then operating leverage won't be as big a concern for airlines in the future as it has been in the past. This in turn would make American Airlines' aggressive use of debt seem a lot more reasonable.
Wishful thinking
The airline industry is certainly a lot healthier today than it was a decade ago. Nevertheless, it's dangerous to assume that American Airlines will remain consistently profitable even in bad times. Parker's optimism may be no more than the unrealistic cheerleading that is all too common among corporate executives.
First, while the U.S. airline industry is highly concentrated today, that could change over time. Indeed, the smaller airlines that collectively make up the "other" 15%-20% of the market are growing much faster than their larger rivals. Collectively, they are likely to at least double in size over the next decade. This will lead to more competition in the future -- and perhaps less capacity discipline.
Second, American Airlines is not in a good position to match supply to demand in a severe downturn. In fact, its fleet renewal efforts could backfire in this respect. Whereas Delta has lots of old planes that it could quickly and cheaply retire if necessary, American Airlines would have to park relatively young (and expensive) planes to achieve the same effect.
This year, American Airlines is facing unit cost pressure just from dialing back its annual capacity growth to 1%. Deep capacity cuts would drive unit costs up much further. This suggests that the carrier actually has limited flexibility to respond to a sharp drop in demand.
At the moment, American Airlines generates plenty of cash to support its high debt level. The carrier probably wouldn't have trouble responding to a small recession, either.
However, a bigger industry downturn -- along the lines of the post-9/11 drop in air travel or the Great Recession -- could create big problems for American Airlines. With a clean balance sheet, Delta Air Lines is ready for anything. By contrast, in a worst-case scenario for demand, American is likely to have trouble managing its massive debt burden.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By contrast, American Airlines (NASDAQ: AAL) has gone on a debt binge in recent years in order to finance heavy capital investments and share repurchases . American Airlines has produced much less free cash flow than Delta over the past few years, as it has implemented an aggressive fleet replacement plan. However, a bigger industry downturn -- along the lines of the post-9/11 drop in air travel or the Great Recession -- could create big problems for American Airlines.
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By contrast, American Airlines (NASDAQ: AAL) has gone on a debt binge in recent years in order to finance heavy capital investments and share repurchases . Debt falls at Delta but soars at American Airlines At the end of 2009, Delta Air Lines had adjusted net debt of $17 billion as a result of years of accumulated losses. American Airlines vs. Delta Air Lines Operating Margin (TTM) data by YCharts .
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By contrast, American Airlines (NASDAQ: AAL) has gone on a debt binge in recent years in order to finance heavy capital investments and share repurchases . Debt falls at Delta but soars at American Airlines At the end of 2009, Delta Air Lines had adjusted net debt of $17 billion as a result of years of accumulated losses. Adjusted net debt -- measured in the same way that Delta measures its debt -- is even higher for American Airlines, at $26.4 billion.
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By contrast, American Airlines (NASDAQ: AAL) has gone on a debt binge in recent years in order to finance heavy capital investments and share repurchases . For many years, investors viewed the airline industry as being extremely risky. Debt falls at Delta but soars at American Airlines At the end of 2009, Delta Air Lines had adjusted net debt of $17 billion as a result of years of accumulated losses.
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65645ab6-18aa-4d0d-ae01-af1efdc7e38c
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7629.0
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2017-02-27 00:00:00 UTC
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Gogo Stock Soars 17% on Strong Guidance After Turbulent 2016 Forced Innovation
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AAL
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https://www.nasdaq.com/articles/gogo-stock-soars-17-strong-guidance-after-turbulent-2016-forced-innovation-2017-02-27
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nan
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nan
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Gogo Inc. GOGO just released its fourth quarter and full-year financial results, and its stock skyrocketed 18.37% to $10.80 on Monday in early afternoon trading. Gogo beat both earnings and revenue estimates despite posting a $26.9 million fourth quarter loss. This quick upward climb comes as great news for the company since its stock had fallen 11% over the last 12 months.
The Chicago-based company, which first began providing phone service for business flights in 1997, officially went public in June 2013. Gogo stock has slowly declined since Dec. 2013.
But in the wake of a turbulent 2016, Gogo posted a better than expected fourth quarter and announced a positive outlook for the future.
Gogo posted an earnings loss of $0.34 per share, beating the Zacks Consensus Estimate of $0.46. Gogo reported revenue of $160 million, beating our estimate of $153 million and increasing 16% year-over-year.
Gogo reported full-year 2016 revenue of $597 million but lost $1.58 per share overall. Still, the in-flight internet provider expects to have a positive free cash flow in 2019, a full year earlier than it previously projected.
Turbulent 2016
American Airlines Group AAL , one of its biggest airline partners, sued Gogo in Feb. 2016 to break its contract because it felt Gogo offered an inferior product. American Airlines pointed to its competitor ViaSat Inc. VSAT as a better in-flight Wi-Fi provider.
The news caused Gogo shares to fall 30% in a single day .
American Airlines dropped the suit only a week later and Gogo rebounded a bit. In June, ViaSat announced a deal with American Airlines to provide Wi-Fi for a new fleet of planes. Gogo still provides services to American Airlines.
For years, the company faced complaints about its slow internet service. But the American Airlines lawsuit might have helped propel the company forward because it prompted Gogo to install or upgraded more than 1,100 aircraft in 2016.
The Chicago-based company had not conducted a substantial upgrade to its services since it first launched its in-flight internet services in 2008. Gogo has raised its prices in recent years to curb demand it can't support . The company currently offers in-flight internet services ranging from $7.00 for one hour to $719.00 for a full year across multiple airlines.
Gogo announced plans to upgrade its 2Ku satellite broadband service in Summer 2016. The new service will be able to provide in-flight Wi-Fi at speeds upwards of 100 Mbps. Just last week, Gogo made its intentions for its 2Ku technology clear in a press release. "There are now more than 100 2Ku aircraft flying with our first-generation modem utilizing existing wide-beam satellite technologies," CEO Michael Small said.
"Under these conditions, the technology is already delivering industry leading performance. With the new modem and HTS satellites, we are setting a very high bar for the industry. We are going to deliver this technology upgrade to our airline partners without needing to take an aircraft out of service, which is incredibly important for their operations."
Gogo announced its new upgraded modems will be installed starting in mid-2017. The proprietary features have increased throughput and reliability. And it will be installed in more than 1750 airplanes on 13 different Gogo-supported airlines.
The upgraded speed promises users they will be able to stream video and live television through the company's new Gogo TV, which could prove to be vital going forward.
Gogo services nearly 9,000 airplanes worldwide and controls roughly 80% of the in-flight Wi-Fi market. Air Canada AC , Alaska Airlines ALK , American Airlines, Delta DAL , United UAL and Virgin America VA are all Gogo partners. The company provides in-flight internet services to four of the top-five U.S. airlines .
Overall, the company has partnerships with 16 commercial airlines and has pushed heavily into the Asian markets in the last few years.
Gogo provides services to Japan Airlines, Japan Transocean Air and Vietnam Airline. The company recently announced it had received approval to provide service to aircrafts flying in Chinese airspace. Gogo also began working with China Telecom Satellite.
The company announced in early Feb. it hired Patrick Carroll as regional president in Asia Pacific (APAC). "As the growth of connected aviation in Asia Pacific expands, Gogo is committed to serving our airline partners in that region along with cultivating new growth opportunities for our 2Ku satellite technology in this market," COO John Wade said in a press release.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
ViaSat, Inc. (VSAT): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Gogo Inc. (GOGO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Turbulent 2016 American Airlines Group AAL , one of its biggest airline partners, sued Gogo in Feb. 2016 to break its contract because it felt Gogo offered an inferior product. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report ViaSat, Inc. (VSAT): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Gogo Inc. (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. Still, the in-flight internet provider expects to have a positive free cash flow in 2019, a full year earlier than it previously projected.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report ViaSat, Inc. (VSAT): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Gogo Inc. (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. Turbulent 2016 American Airlines Group AAL , one of its biggest airline partners, sued Gogo in Feb. 2016 to break its contract because it felt Gogo offered an inferior product. Gogo beat both earnings and revenue estimates despite posting a $26.9 million fourth quarter loss.
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Turbulent 2016 American Airlines Group AAL , one of its biggest airline partners, sued Gogo in Feb. 2016 to break its contract because it felt Gogo offered an inferior product. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report ViaSat, Inc. (VSAT): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Gogo Inc. (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. Gogo provides services to Japan Airlines, Japan Transocean Air and Vietnam Airline.
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Turbulent 2016 American Airlines Group AAL , one of its biggest airline partners, sued Gogo in Feb. 2016 to break its contract because it felt Gogo offered an inferior product. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report ViaSat, Inc. (VSAT): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Gogo Inc. (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. Gogo still provides services to American Airlines.
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3459e79c-d74d-451a-b267-e134b025b20b
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7630.0
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2017-02-23 00:00:00 UTC
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Should Value Investors Pick American Airlines Group (AAL)?
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AAL
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https://www.nasdaq.com/articles/should-value-investors-pick-american-airlines-group-aal-2017-02-23
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nan
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nan
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Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn't want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let's put American Airlines Group Inc.AAL stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock's current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, American Airlines Group has a trailing twelve months PE ratio of 6.87, as you can see in the chart below:
We should also point out that American Airlines Group has a forward PE ratio (price relative to this year's earnings) of just 10.18, so it is fair to expect an increase in the company's share price in the near future.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock's price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, American Airlines Group has a P/S ratio of about 0.60. This is substantially lower than the S&P 500 average, which comes in at 3.18 right now. Also, as we can see in the chart below, this is below the highs for this stock in particular over the past few years.
American Airlines Group is actually trading around the median level of its range in the time period from a P/S metric, suggesting some level of undervalued trading-at least compared to historical norms.
Broad Value Outlook
In aggregate, American Airlines Group currently has a Zacks Value Style Score of 'A', putting it into the top 20% of all stocks we cover from this look. This makes American Airlines Group a solid choice for value investors, and some of its other key metrics make this pretty clear too.
For example, its P/CF ratio (another great indicator of value) comes in at 3.43, which is slightly better than the industry average of 4.88. Clearly, American Airlines Group is a solid choice on the value front from multiple angles.
What About the Stock Overall?
Though American Airlines Group might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of 'B' and a Momentum score of 'B'. This gives American Airlines Group a Zacks VGM score-or its overarching fundamental grade-of 'A'. (You can read more about the Zacks Style Scores here >> )
Meanwhile, the company's recent earnings estimates have been mixed at best. The current quarter has seen one estimate go higher in the past sixty days and three lower, while the full year estimate has seen four upward and four downward revisions in the same time period.
This has had a mixed impact on the consensus estimate, as the current quarter consensus estimate has fallen 7% in the past two months, while the full year estimate has risen by about 3.1%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
American Airlines Group, Inc. Price and Consensus
American Airlines Group, Inc. Price and Consensus | American Airlines Group, Inc. Quote
This mixed trend is why the stock has just a Zacks Rank #3 (Hold) and why we are looking for in-line performance from the company in the near term.
Bottom Line
American Airlines Group is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. However, despite a decent industry rank (top 22% out of more than 250 industries), a Zacks Rank #3, makes it hard to get too excited about this company overall. In fact, over the past two years, the Zacks Transportation-Airline sector has clearly underperformed the broader market, as you can see below:
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American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Let's put American Airlines Group Inc.AAL stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE Ratio A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. On this front, American Airlines Group has a trailing twelve months PE ratio of 6.87, as you can see in the chart below: We should also point out that American Airlines Group has a forward PE ratio (price relative to this year's earnings) of just 10.18, so it is fair to expect an increase in the company's share price in the near future.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Let's put American Airlines Group Inc.AAL stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE Ratio A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. You can see the consensus estimate trend and recent price action for the stock in the chart below: American Airlines Group, Inc. Price and Consensus American Airlines Group, Inc. Price and Consensus | American Airlines Group, Inc. Quote This mixed trend is why the stock has just a Zacks Rank #3 (Hold) and why we are looking for in-line performance from the company in the near term.
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Let's put American Airlines Group Inc.AAL stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE Ratio A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. On this front, American Airlines Group has a trailing twelve months PE ratio of 6.87, as you can see in the chart below: We should also point out that American Airlines Group has a forward PE ratio (price relative to this year's earnings) of just 10.18, so it is fair to expect an increase in the company's share price in the near future.
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Let's put American Airlines Group Inc.AAL stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE Ratio A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Right now, American Airlines Group has a P/S ratio of about 0.60.
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96123bcb-f70b-48d3-9272-3367b9a1e1bb
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7631.0
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2017-02-23 00:00:00 UTC
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Delta Air Lines, United Continental Holdings, American Airlines Group, Alaska Air Group and Southwest Airlines
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-united-continental-holdings-american-airlines-group-alaska-air-group-and
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nan
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nan
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Chicago, IL - February 23, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 3, including Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), American Airlines Group (LON: AAL - Free Report ), Alaska Air Group (NYSE: ALK - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ).
Industry: Airlines, Part 3
Link: https://www.zacks.com/commentary/104401/airline-stocks-hit-by-multiple-headwinds-what39s-on-the-radar
Airline stocks ended the year 2016 on a strong note after having struggled for the greater part of the year. Woes related to unit revenues, which had been hurting carries for quite some time, seem to be mitigating. Moreover, increase in fuel costs might lead to a surge in airfares, thereby driving top-line growth.
In spite of the optimism about airline stocks flying high again, there are certain roadblocks one must be mindful of before investing in the sector. Let's delve into the details.
High Labor Costs May Hurt Earnings
With airline companies constantly inking deals with various labor groups, it is of little surprise that costs on this front are increasing. In fact, this was one of the main reasons for the lackluster bottom-line performance of many air carriers in the fourth quarter. At Delta Air Lines (NYSE: DAL - Free Report ), earnings declined almost 30% year over year due to higher costs. Consolidated unit cost or cost per available seat mile (CASM), including profit sharing, increased 10.6%, mainly due to the agreement with pilots that was ratified in December.
At United Continental Holdings (NYSE: UAL - Free Report ), consolidated unit cost - excluding fuel, third-party business expenses and profit sharing - increased 4.1% year over year, primarily due to the labor deals ratified. United Continental expects unit costs in the first quarter to increase in the band of 4.5-5.5% due to higher in labor costs.
At American Airlines Group (NASDAQ: AAL - Free Report ), total operating expenses climbed 5.4% year over year to $9 billion, primarily due to an increase in labor costs. Expenses pertaining to salaries and benefits surged 17.4%. Consolidated operating costs per available seat miles (CASM: excluding special items) increased 7.6%. Consolidated CASM (excluding fuel and special items) is projected to increase 9% in the first quarter.
Will Capacity Woes Return?
Capacity-related woes had been plaguing stocks in the airline space for quite some time. In fact, the January traffic reports of most carriers have highlighted that such issues might resurface. Apart from American Airlines, traffic updates from the likes of Delta Air Lines, United Continental Holdings and Alaska Air Group (NYSE: ALK - Free Report ) have revealed a fall in load factor as capacity expansion outpaced traffic growth.
In fact, capacity-related fears among investors were re-ignited last month when American Airlines, at its fourth-quarterearnings call hinted at increasing domestic capacity but reducing the same internationally in 2017.
Technology a Major Headwind
Technical glitches have been a great nuisance for carriers. United Continental Holdings was the latest victim of disruption in operations due to technological failure. Last month, Delta suffered a computer outage, which led to the cancellation of multiple flights and caused undue harassment to passengers.
Other major carriers like Southwest Airlines (NYSE: LUV - Free Report ) also have seen their operations being affected by technological problems in the last year. Given that technological infrastructure is a key expense for airlines, the profitability of carriers could be affected in the event of such malfunctions.
Rising Oil Prices Lead to IATA's Tepid 2017 View
The International Air Transport Association (IATA) provided a lackluster view for carriers with respect to the profitability for 2017. The research firm predicts global net profit for the industry of $29.8 billion. This is much lower than the 2016 profitability forecast of $35.6 billion.
The tepid projection may be attributed to the anticipation of rising oil prices . The firm projects that jet fuel prices are likely to escalate around 24.6% to $64.9 per barrel next year. Global net profit margin is expected to shrink to 4.1% in 2017 from the 2016 estimate of 5.1%. According to the forecast, load factor (percentage of seats filled by passengers) for 2017 is expected to decline 40 basis points to 79.8% as capacity expansion is likely to outweigh traffic growth.
Trump's Travel Ban Policy
Last month, President Donald Trump issued a ban on travelers from seven predominantly Muslim nations - Iraq, Iran, Syria, Yemen, Sudan, Somalia and Libya - from entering the U.S. Though the ban (issued on Jan 27) is temporary (restricting travel from these nations for three months apart from suspending the admission of refugees for four months), the executive order indicated that the ban could be extended in the coming days.
As expected, the immigration ban spelled challenges for airlines stocks as the travel demand is likely to decline. Fears of long-term consequences of the ban caused the stocks of major carriers like Delta and American Airlines significantly losing value. Consequently, the NYSE ARCA Airline Index registered a decrease of 1.78% on Jan 30. In fact, the index slid to its lowest level ($108.48) in almost eight weeks. Many carriers, including big players like American Airlines Group, have exposure to Africa and the Middle East. However, with courts refusing to reinstate the ban, focus will remain on the issue going forward.
Terror Attacks
The aforesaid executive order is aimed at preventing terrorism in the U.S. The unfortunate rise in terror attacks across the globe has justly raised concerns regarding security. Terrorism hurt airline stocks owing to rising concerns about security amid multiple such incidents. Terrorist attacks are likely to hurt carriers by reducing the demand for travel due to security fears going forward.
In January, at least five people lost their lives and many more were injured when a man, subsequently nabbed and identified as Esteban Santiago, opened fire in the baggage claim area of Terminal 2 (where Delta Air Lines operates) of the busy Fort Lauderdale-Hollywood International Airport.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Conclusion
The challenges faced by the industry, unless resolved soon, might hamper the growth prospects of stocks in the space. The headwinds can result in investors, especially the risk-averse ones, shying away from the sector.
Check out our latest Airline Industry Outlook for more news on the current state of affairs in this market from an earnings perspective, and how the trend looks ahead for this important sector at the moment.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.
This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
Southwest Airlines Company (LUV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Chicago, IL - February 23, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 3, including Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), American Airlines Group (LON: AAL - Free Report ), Alaska Air Group (NYSE: ALK - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). At American Airlines Group (NASDAQ: AAL - Free Report ), total operating expenses climbed 5.4% year over year to $9 billion, primarily due to an increase in labor costs. Get the full Report on AAL - FREE Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on LUV - FREE Get the full Report on ALK - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Chicago, IL - February 23, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 3, including Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), American Airlines Group (LON: AAL - Free Report ), Alaska Air Group (NYSE: ALK - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. At American Airlines Group (NASDAQ: AAL - Free Report ), total operating expenses climbed 5.4% year over year to $9 billion, primarily due to an increase in labor costs.
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Chicago, IL - February 23, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 3, including Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), American Airlines Group (LON: AAL - Free Report ), Alaska Air Group (NYSE: ALK - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). Get the full Report on AAL - FREE Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on LUV - FREE Get the full Report on ALK - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report To read this article on Zacks.com click here.
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At American Airlines Group (NASDAQ: AAL - Free Report ), total operating expenses climbed 5.4% year over year to $9 billion, primarily due to an increase in labor costs. Chicago, IL - February 23, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 3, including Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), American Airlines Group (LON: AAL - Free Report ), Alaska Air Group (NYSE: ALK - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). Get the full Report on AAL - FREE Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on LUV - FREE Get the full Report on ALK - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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bfd7858b-259f-4b66-84f5-448fd14eb16d
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7632.0
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2017-02-23 00:00:00 UTC
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American Airlines Group, Delta Air Lines, United Continental Holdings, Southwest Airlines and Alaska Air Group
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-delta-air-lines-united-continental-holdings-southwest-airlines-and
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nan
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nan
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Chicago, IL - February 23, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including American Airlines Group (NASDAQ: AAL - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), Southwest Airlines (NYSE: LUV - Free Report ) and Alaska Air Group (NYSE: ALK - Free Report ).
Industry: Airlines, Part 1
Link: https://www.zacks.com/commentary/104261/what39s-in-store-for-us-airlines-under-trump
Donald Trump's election win in November turned out to be a boon for the stock market, with major indices skyrocketing. The airline space was not left behind, with the NYSE ARCA Airline Index gaining in double digits since Nov 8.
In fact, top airline executives met the President (who assumed office last month) on Feb 9, and had a constructive discussion, which led to airline stocks gaining. President Trump promised to modernize the obsolete U.S. air traffic control system. Airline companies are also hopeful that the Trump Era would see them operating with fewer regulations and in a low-tax regime.
No doubt, the airline space will be closely watched going forward.
Buffett Boost for Airlines
The prospects of the airline stocks were further boosted with Warren Buffett's recent interest in the space. Buffett's Berkshire Hathaway increased stakes in airline heavyweights like American Airlines Group (NASDAQ: AAL - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and United Continental Holdings (NYSE: UAL - Free Report ) in the fourth quarter. Moreover, Buffett has invested heavily in low-cost carrier, Southwest Airlines (NYSE: LUV - Free Report ).
Buffett's renewed interest in the airline sector, after having shunned it for a long while, was made public in November last year. The recent increase of stakes by one the most revered investors of all time is certainly a healthy for the sector that had been grappling with multiple headwinds not so long ago.
Unit Revenues to Improve Further in 2017?
Woes related to unit revenues had plagued airlines for quite a while. However, the industry's impressive fourth-quarter results have been able to mitigate such worries to some extent. In fact, carriers like American Airlines and Alaska Air Group (NYSE: ALK - Free Report ) displayed growth in this key metric in the fourth quarter. Alaska Air Group holds a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The first-quarter guidance for passenger unit revenues from the likes of Delta and United Continental is also encouraging. Given this bullish backdrop, more and more carriers are expected to return to unit revenue growth in 2017.
Moreover, the scenario of rising oil prices in 2017 provides airlines the scope to raise air fares, thereby boosting revenues. Reportedly , airfares were increased by the likes of JetBlue Airways (JBLU) and Alaska Air Group in January. We expect even more carriers to hike fare as the year progresses.
Valuation Signals More Upside
Going by the EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation and amortization) ratio, which is often used to value airline stocks, given their significant debt levels and high depreciation and amortization expenses, the industry doesn't look expensive at this point.
The industry currently has a trailing 12-month EV/EBITDA ratio of 6, which is favorable compared to what the industry saw in the last two years. The ratio is almost near the low end of 4.6 during the period.
Additionally, the reading compares favorably with the market at large, as the current EV/EBITDA for the S&P 500 is at 10.43 and the median level is 9.7. The industry's favorable positioning compared to the overall market certainly signals more upside.
Zacks Industry Rank
The airline industry falls under the broader Transportation sector (one of 16 Zacks Sectors). The bullish Zacks Industry rank of 67 carried by the 25-member Zacks Transportation-Airline industry also highlights the fact that airline stocks are back in favor. The favorable rank places the industry in the top 26% of the 250+ groups enlisted. The bullish stance on the industry is further augmented by the fact there have been 13 positive estimate revisions in the fourth quarter of 2016.
The improving scenario for the airline industry can be well gauged from the fact that the Zacks Industry Rank for the space has improved immensely, given the industry's 200+ rank only a few months ago.
Some Headwinds
While there are plenty of reasons to be bullish about airlines moving ahead, the space is not entirely bereft of headwinds. With carriers inking deals with various labor groups, such costs are on the rise. This can be made out from the fourth-quarter earnings reports of carriers, which clearly shows that increasing costs led to significant contraction in their bottom line on a year-over-year basis. In fact, our Earnings Preview report shows that the transportation sector, of which airlines are a part, is one of the worst performers in the quarter among the 16 Zacks sectors.
The outlooks issued by various carriers for the first quarter seem to suggest that labor costs will hurt earnings in the first quarter as well. Additionally, on Jan 27, President Trump issued a ban on travelers from seven predominantly Muslim nations - Iraq, Iran, Syria, Yemen, Sudan, Somalia and Libya - from entering the U.S. The ban, said to be aimed at preventing terrorism, restricted travel from these nations for three months, apart from suspending the admission of refugees for four months.
As expected, the immigration ban spelled challenges for airlines stocks, as travel demand is likely to decline. However, with courts refusing to reinstate the ban, focus will remain on the issue going forward. Also, technical glitches have been a cause of concern for carriers with many heavyweights in the space having their services disrupted due to this issue.
Bottom Line
The sector's cheap valuation, the faith given by one of the greatest investors of all time, improving unit revenue scenario and other tailwinds makes us believe that good things are in store for airlines in 2017. Moreover, in the event of President Trump being successful in revamping the U.S. air traffic control system and cutting taxes, already cheap airline stocks would fly even higher.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today's most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on AAL - FREE
Get the full Report on DAL - FREE
Get the full Report on UAL - FREE
Get the full Report on LUV - FREE
Get the full Report on ALK - FREE
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.
This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Southwest Airlines Company (LUV): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Chicago, IL - February 23, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including American Airlines Group (NASDAQ: AAL - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), Southwest Airlines (NYSE: LUV - Free Report ) and Alaska Air Group (NYSE: ALK - Free Report ). Buffett's Berkshire Hathaway increased stakes in airline heavyweights like American Airlines Group (NASDAQ: AAL - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and United Continental Holdings (NYSE: UAL - Free Report ) in the fourth quarter. Get the full Report on AAL - FREE Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on LUV - FREE Get the full Report on ALK - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Chicago, IL - February 23, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including American Airlines Group (NASDAQ: AAL - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), Southwest Airlines (NYSE: LUV - Free Report ) and Alaska Air Group (NYSE: ALK - Free Report ). Buffett's Berkshire Hathaway increased stakes in airline heavyweights like American Airlines Group (NASDAQ: AAL - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and United Continental Holdings (NYSE: UAL - Free Report ) in the fourth quarter. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here.
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Chicago, IL - February 23, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including American Airlines Group (NASDAQ: AAL - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), Southwest Airlines (NYSE: LUV - Free Report ) and Alaska Air Group (NYSE: ALK - Free Report ). Get the full Report on AAL - FREE Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on LUV - FREE Get the full Report on ALK - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here.
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Chicago, IL - February 23, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including American Airlines Group (NASDAQ: AAL - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), Southwest Airlines (NYSE: LUV - Free Report ) and Alaska Air Group (NYSE: ALK - Free Report ). Buffett's Berkshire Hathaway increased stakes in airline heavyweights like American Airlines Group (NASDAQ: AAL - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and United Continental Holdings (NYSE: UAL - Free Report ) in the fourth quarter. Get the full Report on AAL - FREE Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on LUV - FREE Get the full Report on ALK - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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3c28a8a2-8b40-4d92-820c-795e214b4c9d
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7633.0
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2017-02-22 00:00:00 UTC
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American Airlines and United Airlines Start Selling Basic Economy Fares
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AAL
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https://www.nasdaq.com/articles/american-airlines-and-united-airlines-start-selling-basic-economy-fares-2017-02-22
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nan
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nan
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A few years ago, Delta Air Lines (NYSE: DAL) introduced a new class of cheaper "basic economy" fares to help it compete with ultra-low cost carriers on certain routes. Last year, American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) confirmed that they would introduce their own basic economy fares to stay competitive.
Earlier this week, American and United began selling these basic economy tickets -- but only for a handful of routes. This will allow them to see how customers react before rolling out basic economy more broadly.
The idea behind Basic Economy
Delta Air Lines launched basic economy fares to solve a particular problem. Delta was matching low fares offered by various budget carriers. Customers buying those cheap fares, typically far in advance, would get to select the best economy-class seats on the flight. Meanwhile, business travelers who booked just a week or two before the flight and paid much higher fares would often end up stuck in the middle seats.
Customers who buy Delta's basic economy fares aren't allowed to select seats in advance. As a result, they are likely to end up in middle seats, whereas business travelers who pay more will have a better chance at getting more desirable seat assignments. Delta's basic economy tickets also prohibit flight changes, upgrades, and standby privileges.
American Airlines and United Airlines have gone a step further. In an effort to compete even more vigorously with ultra-low cost carriers, they have removed more features from their basic economy fares.
Most notably, customers who buy basic economy fares with American or United will not be allowed to bring a full-sized carry-on bag . Only smaller "personal items" that fit beneath the seat will be permitted.
The risk for American Airlines and United Continental
In terms of competing with ultra-low cost carriers like Spirit Airlines and Frontier Airlines, the new American and United basic economy fares are still relatively attractive. After all, the ultra-low cost carriers all charge high fees for bringing a carry-on bag. Furthermore, they don't even offer free snacks or drinks.
However, both airlines' basic economy offerings are clearly worse than Delta's version of basic economy. At least Delta still includes free full-size carry-on bags with basic economy tickets. American Airlines and United Airlines thus risk reinforcing the already prevalent view that Delta is the best of the big legacy carriers.
Thus, it's a good idea for American and United to test their new basic economy fares in a few markets first rather than quickly rolling them out nationwide.
American Airlines has made basic economy fares available in 10 markets, starting March 1. This includes a mix of business markets (some of which are hub-hub routes) like Philadelphia-Dallas/Fort Worth along with leisure routes like Charlotte-Orlando.
Meanwhile, United Airlines is starting with basic economy on just seven routes, connecting Minneapolis/St. Paul to each of its domestic hubs. The United basic economy fares are available for travel beginning on April 18.
United's testing strategy seems smarter than American's approach. Minneapolis is a fortress hub for Delta. Thus, United will get to see how its basic economy product performs head-to-head with Delta's. It will also compete directly with ultra-low cost carriers in some of these markets. Additionally, United has relatively low market share on most of these routes, so it doesn't have much to lose.
By contrast, while American Airlines is also starting small, it is putting basic economy fares on high-volume routes where it is the dominant carrier. As a result, if its basic economy offering alienates customers, it could do a lot of damage in a short period of time.
Are American and United commoditizing their products?
In theory, American Airlines' and United Airlines' highly restrictive basic economy fares make a lot of sense. Limiting carry-on baggage will speed up operations and encourage customers to pay a little more (often about $20 each way) to upgrade to a regular economy fare. And both carriers' basic economy fares still include more perks than tickets on any ultra-low cost carrier.
However, consumers may not see things the same way. Rather than appreciating having more choices, many consumers will either pay extra to upgrade to a traditional economy fare but feel bitter about that extra cost, or they will take the basic economy fare but have a bad experience. Either way, it's a risk to the airlines' reputations.
Of course, consumers were very resistant to bag fees less than a decade ago. Eventually, they became accepted as a fact of life. Perhaps travelers will quickly come to see carry-on bag restrictions in the same light. But if not, American Airlines and United Continental could compromise their reputations as they attempt to remain price-competitive with cheaper rivals.
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Adam Levine-Weinberg owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool recommends Spirit Airlines. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Last year, American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) confirmed that they would introduce their own basic economy fares to stay competitive. A few years ago, Delta Air Lines (NYSE: DAL) introduced a new class of cheaper "basic economy" fares to help it compete with ultra-low cost carriers on certain routes. By contrast, while American Airlines is also starting small, it is putting basic economy fares on high-volume routes where it is the dominant carrier.
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Last year, American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) confirmed that they would introduce their own basic economy fares to stay competitive. Customers who buy Delta's basic economy fares aren't allowed to select seats in advance. The risk for American Airlines and United Continental In terms of competing with ultra-low cost carriers like Spirit Airlines and Frontier Airlines, the new American and United basic economy fares are still relatively attractive.
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Last year, American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) confirmed that they would introduce their own basic economy fares to stay competitive. The risk for American Airlines and United Continental In terms of competing with ultra-low cost carriers like Spirit Airlines and Frontier Airlines, the new American and United basic economy fares are still relatively attractive. However, both airlines' basic economy offerings are clearly worse than Delta's version of basic economy.
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Last year, American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) confirmed that they would introduce their own basic economy fares to stay competitive. American Airlines and United Airlines have gone a step further. The risk for American Airlines and United Continental In terms of competing with ultra-low cost carriers like Spirit Airlines and Frontier Airlines, the new American and United basic economy fares are still relatively attractive.
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5830e4a3-2462-4ad5-b182-0e79de4d801a
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7634.0
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2017-02-21 00:00:00 UTC
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What's in Store for U.S. Airlines Under Trump?
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AAL
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https://www.nasdaq.com/articles/whats-in-store-for-u.s.-airlines-under-trump-2017-02-21
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nan
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nan
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Donald Trump's election win in November turned out to be a boon for the stock market, with major indices skyrocketing. The airline space was not left behind, with the NYSE ARCA Airline Index gaining in double digits since Nov 8.
In fact, top airline executives met the President (who assumed office last month) on Feb 9, and had a constructive discussion, which led to airline stocks gaining. President Trump promised to modernize the obsolete U.S. air traffic control system. Airline companies are also hopeful that the Trump Era would see them operating with fewer regulations and in a low-tax regime.
No doubt, the airline space will be closely watched going forward.
Buffett Boost for Airlines
The prospects of the airline stocks were further boosted with Warren Buffett's recent interest in the space. Buffett's Berkshire Hathaway increased stakes in airline heavyweights like American Airlines Group (AAL), Delta Air Lines (DAL) and United Continental Holdings (UAL) in the fourth quarter. Moreover, Buffett has invested heavily in low-cost carrier, Southwest Airlines (LUV).
Buffett's renewed interest in the airline sector, after having shunned it for a long while, was made public in November last year. The recent increase of stakes by one the most revered investors of all time is certainly a healthy for the sector that had been grappling with multiple headwinds not so long ago.
Unit Revenues to Improve Further in 2017?
Woes related to unit revenues had plagued airlines for quite a while. However, the industry's impressive fourth-quarter results have been able to mitigate such worries to some extent. In fact, carriers like American Airlines and Alaska Air Group (ALK) displayed growth in this key metric in the fourth quarter. Alaska Air Group holds a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The first-quarter guidance for passenger unit revenues from the likes of Delta and United Continental is also encouraging. Given this bullish backdrop, more and more carriers are expected to return to unit revenue growth in 2017.
Moreover, the scenario of rising oil prices in 2017 provides airlines the scope to raise air fares, thereby boosting revenues. Reportedly , airfares were increased by the likes of JetBlue Airways (JBLU) and Alaska Air Group in January. We expect even more carriers to hike fare as the year progresses.
Valuation Signals More Upside
Going by the EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation and amortization) ratio, which is often used to value airline stocks, given their significant debt levels and highdepreciation and amortization expenses,the industry doesn't look expensive at this point.
The industry currently has a trailing 12-month EV/EBITDA ratio of 6, which is favorable compared to what the industry saw in the last two years. The ratio is almost near the low end of 4.6 during the period.
Additionally, the reading compares favorably with the market at large, as the current EV/EBITDA for the S&P 500 is at 10.43 and the median level is 9.7. The industry's favorable positioning compared to the overall market certainly signals more upside.
Zacks Industry Rank
The airline industry falls under the broader Transportation sector (one of 16 Zacks Sectors). The bullish Zacks Industry rank of 67 carried by the 25-member Zacks Transportation-Airline industry also highlights the fact that airline stocks are back in favor. The favorable rank places the industry in the top 26% of the 250+ groups enlisted. The bullish stance on the industry is further augmented by the fact there have been 13 positive estimate revisions in the fourth quarter of 2016.
The improving scenario for the airline industry can be well gauged from the fact that the Zacks Industry Rank for the space has improved immensely, given the industry's 200+ rank only a few months ago.
Some Headwinds
While there are plenty of reasons to be bullish about airlines moving ahead, the space is not entirely bereft of headwinds. With carriers inking deals with various labor groups, such costs are on the rise. This can be made out from the fourth-quarter earnings reports of carriers, which clearly shows that increasing costs led to significant contraction in their bottom line on a year-over-year basis. In fact, our Earnings Preview report shows that the transportation sector, of which airlines are a part, is one of the worst performers in the quarter among the 16 Zacks sectors.
The outlooks issued by various carriers for the first quarter seem to suggest that labor costs will hurt earnings in the first quarter as well. Additionally, on Jan 27, President Trump issued a ban on travelers from seven predominantly Muslim nations - Iraq, Iran, Syria, Yemen, Sudan, Somalia and Libya - from entering the U.S. The ban, said to be aimed at preventing terrorism, restricted travel from these nations for three months, apart from suspending the admission of refugees for four months.
As expected, the immigration ban spelled challenges for airlines stocks, as travel demand is likely to decline. However, with courts refusing to reinstate the ban, focus will remain on the issue going forward. Also, technical glitches have been a cause of concern for carriers with many heavyweights in the space having their services disrupted due to this issue.
Bottom Line
The sector's cheap valuation, the faith given by one of the greatest investors of all time, improving unit revenue scenario and other tailwinds makes us believe that good things are in store for airlines in 2017. Moreover, in the event of President Trump being successful in revamping the U.S. air traffic control system and cutting taxes, already cheap airline stocks would fly even higher.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today's most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Southwest Airlines Company (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Buffett's Berkshire Hathaway increased stakes in airline heavyweights like American Airlines Group (AAL), Delta Air Lines (DAL) and United Continental Holdings (UAL) in the fourth quarter. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, on Jan 27, President Trump issued a ban on travelers from seven predominantly Muslim nations - Iraq, Iran, Syria, Yemen, Sudan, Somalia and Libya - from entering the U.S.
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Buffett's Berkshire Hathaway increased stakes in airline heavyweights like American Airlines Group (AAL), Delta Air Lines (DAL) and United Continental Holdings (UAL) in the fourth quarter. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, carriers like American Airlines and Alaska Air Group (ALK) displayed growth in this key metric in the fourth quarter.
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Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Buffett's Berkshire Hathaway increased stakes in airline heavyweights like American Airlines Group (AAL), Delta Air Lines (DAL) and United Continental Holdings (UAL) in the fourth quarter. The bullish Zacks Industry rank of 67 carried by the 25-member Zacks Transportation-Airline industry also highlights the fact that airline stocks are back in favor.
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Buffett's Berkshire Hathaway increased stakes in airline heavyweights like American Airlines Group (AAL), Delta Air Lines (DAL) and United Continental Holdings (UAL) in the fourth quarter. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The industry currently has a trailing 12-month EV/EBITDA ratio of 6, which is favorable compared to what the industry saw in the last two years.
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2017-02-18 00:00:00 UTC
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Warren Buffett Doubled Down on Airline Stocks Last Quarter -- Here's Why
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AAL
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https://www.nasdaq.com/articles/warren-buffett-doubled-down-airline-stocks-last-quarter-heres-why-2017-02-18
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Late last year, investors were shocked to learn that Warren Buffett's Berkshire Hathaway (NYSE: BRK-B) had invested in several airline stocks during the third quarter of 2016.
None of the investments were especially large by Berkshire Hathaway standards. Still, given that Buffett had been steadfastly warning investors away from the airline industry for more than a decade, this apparent change of heart was especially momentous.
However, Buffett wasn't done. During the fourth quarter, Berkshire Hathaway dramatically increased its holdings of American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) and made a big investment in Southwest Airlines (NYSE: LUV) .
Berkshire Hathaway now owns large stakes in the top four U.S. airlines. Image source: American Airlines.
Warren Buffett gets serious about airlines
While Berkshire Hathaway invested in all three of the big U.S. legacy carriers during the third quarter, the largest investment by far was in American Airlines, with a value of almost $800 million. This seemed peculiar, as American Airlines has the weakest balance sheet of the three and has produced hardly any free cash flow in recent years. These traits make it the opposite of a typical Buffett stock.
With 20/20 hindsight, it looks like the apparent preference for American Airlines over its rivals was just an artifact of the timing of Berkshire Hathaway's airline stock purchases.
During Q4, Berkshire Hathaway roughly doubled its stake in American Airlines. However, it boosted its holdings of United Continental stock sixfold and increased its Delta Air Lines stake nearly tenfold. Berkshire Hathaway also acquired about $2 billion of Southwest Airlines stock during the quarter.
After this flurry of activity, Berkshire Hathaway ended 2016 with similar-sized investments of $2.1 billion in American Airlines, Southwest Airlines, and United Continental and a nearly $3 billion investment in Delta Air Lines. Berkshire now owns nearly 10% of each of the three legacy carriers and about 7% of Southwest Airlines.
This isn't an opportunistic value play
Airline stocks as a whole have rallied tremendously since bottoming out in mid-2016. An investor who bought shares of the top four airlines at the beginning of the third quarter would be sitting on gains ranging from almost 40% (for Delta) to more than 80% (for United) today.
Airline Stock Performance, data by YCharts .
Early in the third quarter, most airline stocks looked extremely cheap. However, Warren Buffett and his lieutenants weren't just looking to pounce on airline stocks while they were selling at a discount. Berkshire Hathaway continued to plow money into airlines even after the stocks had started to bounce back.
These aren't the best airline stocks out there
So far, Berkshire Hathaway's big airline bet has worked out, as shares of American, Delta, Southwest, and United remain near their all-time highs. However, the recent rally in airline stocks has been driven by sentiment more than performance.
As I noted earlier, American Airlines has racked up a huge debt load over the past several years and currently produces very little free cash flow. Delta and United have generated strong cash flow in recent years but have offered discouraging guidance for 2017 . Furthermore, all four top U.S. carriers face rising fuel costs and a big increase in labor costs this year.
Investors hope that the airlines will be able to offset these cost pressures with a return to strong unit revenue growth. But while unit revenue trends are improving, American, Delta, Southwest, and United still face rising competition from smaller, faster-growing airlines. The legacy carriers are also feeling pressure from rapid growth by foreign carriers.
American Airlines, Delta Air Lines, Southwest Airlines, and United Continental still dominate the U.S. airline industry on a combined basis. This strong positioning -- along with a clear commitment to capacity discipline among these four airlines -- should make these stocks decent investments going forward.
However, Alaska Air , JetBlue Airways , and Spirit Airlines are all more enticing investments right now. These carriers are growing much faster than their larger rivals but they trade at relatively similar earnings multiples.
These smaller airlines have had more ups and downs than their larger brethren in the past few years, which seems to have scared off many investors. Yet in the long run, it seems clear that they will generate faster revenue and earnings growth than American, Delta, Southwest, and United will ever manage.
Based on the size of Berkshire Hathaway's investment portfolio, airlines outside the top four may have seemed too small to invest in. But ordinary individual investors have no such constraints -- and smaller airlines offer much more long-term upside.
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*Stock Advisor returns as ofDecember 12 , 2016
The author(s) may have a position in any stocks mentioned.
Adam Levine-Weinberg owns shares of Alaska Air Group, Delta Air Lines, JetBlue Airways, and Spirit Airlines and is long January 2019 $10 calls on JetBlue Airways. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends JetBlue Airways and Spirit Airlines. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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During the fourth quarter, Berkshire Hathaway dramatically increased its holdings of American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) and made a big investment in Southwest Airlines (NYSE: LUV) . Late last year, investors were shocked to learn that Warren Buffett's Berkshire Hathaway (NYSE: BRK-B) had invested in several airline stocks during the third quarter of 2016. An investor who bought shares of the top four airlines at the beginning of the third quarter would be sitting on gains ranging from almost 40% (for Delta) to more than 80% (for United) today.
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During the fourth quarter, Berkshire Hathaway dramatically increased its holdings of American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) and made a big investment in Southwest Airlines (NYSE: LUV) . After this flurry of activity, Berkshire Hathaway ended 2016 with similar-sized investments of $2.1 billion in American Airlines, Southwest Airlines, and United Continental and a nearly $3 billion investment in Delta Air Lines. Adam Levine-Weinberg owns shares of Alaska Air Group, Delta Air Lines, JetBlue Airways, and Spirit Airlines and is long January 2019 $10 calls on JetBlue Airways.
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During the fourth quarter, Berkshire Hathaway dramatically increased its holdings of American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) and made a big investment in Southwest Airlines (NYSE: LUV) . After this flurry of activity, Berkshire Hathaway ended 2016 with similar-sized investments of $2.1 billion in American Airlines, Southwest Airlines, and United Continental and a nearly $3 billion investment in Delta Air Lines. These aren't the best airline stocks out there So far, Berkshire Hathaway's big airline bet has worked out, as shares of American, Delta, Southwest, and United remain near their all-time highs.
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During the fourth quarter, Berkshire Hathaway dramatically increased its holdings of American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) and made a big investment in Southwest Airlines (NYSE: LUV) . Late last year, investors were shocked to learn that Warren Buffett's Berkshire Hathaway (NYSE: BRK-B) had invested in several airline stocks during the third quarter of 2016. However, Buffett wasn't done.
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7636.0
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2017-02-16 00:00:00 UTC
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Raging Bull: Buffett’s Berkshire Almost Quadrupled Its Stake In Apple Inc. (AAPL)
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AAL
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https://www.nasdaq.com/articles/raging-bull%3A-buffetts-berkshire-almost-quadrupled-its-stake-in-apple-inc.-aapl-2017-02-16
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Warren Buffett is ultra-bullish on Apple Inc. ( AAPL ), as he nearly quadrupled his holdings in the stock .
By the end of the year, Buffett's Berkshire Hathaway Inc. ( BRK.A , BRK.B )held about 57 million shares, an increase from 15 million shares in the third quarter, according to a regulatory filing on Tuesday. The firm's total stake in the iPhone maker stood at approximately $6.6 billion as of December 31.
Buffett Bullish on Apple
Apple shares, which have rallied 42% in the last 12 months, surged to a new high on Tuesday and continued to move ahead on Wednesday, exhibiting rising interest among investors. If Buffett did not make any alteration to his positions since the end of the last year, it is now worth a whopping $7.7 billion, according to Forbes.
Buffett's rising interest in Apple does come as a surprise, considering his reluctance towards technology stocks, which, according to him, are outside his zone of competence, except for International Business Machines Corp. ( IBM ).
However, Berkshire has etched its name among the top 10 biggest Apple investors after accumulating the stock recently, according to Reuters .
Thomas Russo, who oversees $11 billion in assets at Gardner Russo & Gardner in Lancaster, told Reuters, "I'm stunned to see the size of that Apple position. It's quite possible that Warren woke up and began to understand the virtues of Apple that he had been neglecting or, like with Precision Castparts, Todd or Ted had an affinity for Apple that sparked interest from Warren."
Buffett started building a position in the stock last year when the market turned bearish on it due to sluggish iPhone sales and declining revenue. He added 9.8 million shares worth $1.1 billion.
7 Tech Stocks With Explosive Growth Potential
Buffett is Upbeat on Airlines, Too
Buffett's Berkshire is also upbeat about airlines, beefing up its position in American Airlines Group Inc ( AAL ), Delta Airlines, Inc. ( DAL ) and United Continental Holdings Inc ( UAL ).
Additionally, it added a stake in Southwest Airlines Co ( LUV ) during the quarter, according to regulatory filings. Buffett has also taken a position in Monsanto Company ( MON ) and Sirius XM Holdings Inc ( SIRI ), notes Forbes .
On the other hand, Berkshire has reduced its holdings in Wal-Mart Stores Inc ( WMT ) from 12.9 million shares to 1.4 million shares. Buffett , who is not so bullish on technology companies, is currently the second richest person in the world, with a net worth of about $74.9 billion, according to Forbes' estimate.
Major Berkshire investments such as Wells Fargo & Co ( WFC ), The Coca-Cola Co ( KO ) and IBM are Buffett's ideas, but the 86-year-old has given more responsibility to Todd Combs and Ted Weschler in recent years.
Year to date, AAPL stock is up almost 17%, while in the last six months, it is up almost 25%.
The post Buffett's Berkshire Almost Quadrupled Its Stake In Apple Inc. appeared first on ValueWalk .
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The post Raging Bull: Buffett's Berkshire Almost Quadrupled Its Stake In Apple Inc. (AAPL) appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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7 Tech Stocks With Explosive Growth Potential Buffett is Upbeat on Airlines, Too Buffett's Berkshire is also upbeat about airlines, beefing up its position in American Airlines Group Inc ( AAL ), Delta Airlines, Inc. ( DAL ) and United Continental Holdings Inc ( UAL ). Buffett's rising interest in Apple does come as a surprise, considering his reluctance towards technology stocks, which, according to him, are outside his zone of competence, except for International Business Machines Corp. ( IBM ). Buffett started building a position in the stock last year when the market turned bearish on it due to sluggish iPhone sales and declining revenue.
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7 Tech Stocks With Explosive Growth Potential Buffett is Upbeat on Airlines, Too Buffett's Berkshire is also upbeat about airlines, beefing up its position in American Airlines Group Inc ( AAL ), Delta Airlines, Inc. ( DAL ) and United Continental Holdings Inc ( UAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Warren Buffett is ultra-bullish on Apple Inc. ( AAPL ), as he nearly quadrupled his holdings in the stock . By the end of the year, Buffett's Berkshire Hathaway Inc. ( BRK.A , BRK.B )held about 57 million shares, an increase from 15 million shares in the third quarter, according to a regulatory filing on Tuesday.
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7 Tech Stocks With Explosive Growth Potential Buffett is Upbeat on Airlines, Too Buffett's Berkshire is also upbeat about airlines, beefing up its position in American Airlines Group Inc ( AAL ), Delta Airlines, Inc. ( DAL ) and United Continental Holdings Inc ( UAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Warren Buffett is ultra-bullish on Apple Inc. ( AAPL ), as he nearly quadrupled his holdings in the stock . 7 Marvelous Mid-Cap Stocks to Buy for the Best of All Worlds 12 Stocks That Will Live and Die by Donald Trump's Pen The post Raging Bull: Buffett's Berkshire Almost Quadrupled Its Stake In Apple Inc. (AAPL) appeared first on InvestorPlace .
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7 Tech Stocks With Explosive Growth Potential Buffett is Upbeat on Airlines, Too Buffett's Berkshire is also upbeat about airlines, beefing up its position in American Airlines Group Inc ( AAL ), Delta Airlines, Inc. ( DAL ) and United Continental Holdings Inc ( UAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Warren Buffett is ultra-bullish on Apple Inc. ( AAPL ), as he nearly quadrupled his holdings in the stock . By the end of the year, Buffett's Berkshire Hathaway Inc. ( BRK.A , BRK.B )held about 57 million shares, an increase from 15 million shares in the third quarter, according to a regulatory filing on Tuesday.
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2017-02-15 00:00:00 UTC
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Berkshire Hathaway Increases Bets on Airlines, Apple But Sells Out Kinder Morgan, NOW, Deere
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AAL
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https://www.nasdaq.com/articles/berkshire-hathaway-increases-bets-airlines-apple-sells-out-kinder-morgan-now-deere-2017-02
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Berkshire Hathaway (BRK.A, BRK.B) has increased its stakes in airlines, with its investments in American Airlines Group ( AAL ), Delta Air Lines ( DAL ) and United Continental Holdings ( UAL ) climbing to more than $2 billion each, according to regulatory filings. It also disclosed a stake in Southwest Airlines Co. ( LUV ) valued at about $2.2 billion as of Dec. 31.
Berkshire also more than tripled its stake in Apple ( AAPL ) to about 57 million shares, which is valued at more than $7 billion, making Berkshire among the top 10 holders.
It also disclosed an 8-million-share position in Monsanto (MON) and about 167 million shares of Sirius (SIRI).
It lowered its stake in Walmart (WMT) to less than 2 million shares as of Dec. 31 and sold its entire stakes in Kinder Morgan Inc. (KMI), NOW Inc. (DNOW) and Deere & Co (DE).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire Hathaway (BRK.A, BRK.B) has increased its stakes in airlines, with its investments in American Airlines Group ( AAL ), Delta Air Lines ( DAL ) and United Continental Holdings ( UAL ) climbing to more than $2 billion each, according to regulatory filings. It also disclosed a stake in Southwest Airlines Co. ( LUV ) valued at about $2.2 billion as of Dec. 31. It also disclosed an 8-million-share position in Monsanto (MON) and about 167 million shares of Sirius (SIRI).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Berkshire Hathaway (BRK.A, BRK.B) has increased its stakes in airlines, with its investments in American Airlines Group ( AAL ), Delta Air Lines ( DAL ) and United Continental Holdings ( UAL ) climbing to more than $2 billion each, according to regulatory filings. It also disclosed a stake in Southwest Airlines Co. ( LUV ) valued at about $2.2 billion as of Dec. 31.
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Berkshire Hathaway (BRK.A, BRK.B) has increased its stakes in airlines, with its investments in American Airlines Group ( AAL ), Delta Air Lines ( DAL ) and United Continental Holdings ( UAL ) climbing to more than $2 billion each, according to regulatory filings. Berkshire also more than tripled its stake in Apple ( AAPL ) to about 57 million shares, which is valued at more than $7 billion, making Berkshire among the top 10 holders. It lowered its stake in Walmart (WMT) to less than 2 million shares as of Dec. 31 and sold its entire stakes in Kinder Morgan Inc. (KMI), NOW Inc. (DNOW) and Deere & Co (DE).
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Berkshire Hathaway (BRK.A, BRK.B) has increased its stakes in airlines, with its investments in American Airlines Group ( AAL ), Delta Air Lines ( DAL ) and United Continental Holdings ( UAL ) climbing to more than $2 billion each, according to regulatory filings. It also disclosed a stake in Southwest Airlines Co. ( LUV ) valued at about $2.2 billion as of Dec. 31. It lowered its stake in Walmart (WMT) to less than 2 million shares as of Dec. 31 and sold its entire stakes in Kinder Morgan Inc. (KMI), NOW Inc. (DNOW) and Deere & Co (DE).
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2017-02-15 00:00:00 UTC
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How Did Alaska Air Perform Operationally In January?
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https://www.nasdaq.com/articles/how-did-alaska-air-perform-operationally-january-2017-02-15
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In the month of January, Alaska Air ( ALK ) saw all its key metrics improve. Keeping with the company's guidance to increase capacity by 6% in the first quarter of the year 2017, the carrier saw its capacity rise 6.4% in January. Alaska's passenger traffic grew at 5.7% y-o-y, while the occupancy rate declined slightly to 79.3%. For the full year, traffic was up as much as 5.9%.
Furthermore, Alaska Air completed its acquisition of Virgin America on December 14, 2016. In the table below, we discuss Virgin America's operational performance for the month of January. Its capacity grew 11.9% y-o-y, resulting in a solid increase in traffic growth at 10.3% y-o-y. However, the occupancy rate for January was down 100 bps to 76.2% in January.
On a consolidated basis, the Air Group's capacity was up 7.6% for the month and traffic growth continued to impress at 6.9% in January 2017. However, the occupancy rate declined slightly. That said, the company's unit revenues are expected to turn to positive as we head into the first quarter, owing to the improvement in the macroeconomic conditions and general recession of headwinds seen in 2016.
Have more questions about Alaska Air ( ALK )? See the following links:
Why Have We Revised Alaska Air's Price Estimate To $69 Per Share?
Alaska Air Reports Another Strong Quarter Backed By Rapid Capacity Growth And Lower Fuel Costs
Alaska Air Q2'16 Earnings Preview: Capacity Growth, Fiscal Discipline To Support Earnings
How Will The Virgin America Deal Impact Alaska Air's Share Repurchase Program?
Will Alaska Air-Virgin America Face Antitrust Issues?
How Will The Virgin America Merger Impact Alaska Air's Cost Of Capital?
How Will Alaska Air's Market Share Change Post The Virgin America Deal?
Why Is Alaska Air Acquiring Virgin America?
How Will Alaska Air Benefit From The Virgin America Deal Operationally?
How Will The Expected Return On The Alaska Air-Virgin America Merger Compare With The Previous Deals In The Sector?
How Will The Virgin America Deal Alter Alaska Air's Capital Structure?
Has Alaska Air Paid A Fair Price For Acquiring Virgin America?
Alaska Air's Earnings Rise On The Back Of Rapid Capacity Growth And Lower Fuel Costs
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On a consolidated basis, the Air Group's capacity was up 7.6% for the month and traffic growth continued to impress at 6.9% in January 2017. That said, the company's unit revenues are expected to turn to positive as we head into the first quarter, owing to the improvement in the macroeconomic conditions and general recession of headwinds seen in 2016. How Will The Expected Return On The Alaska Air-Virgin America Merger Compare With The Previous Deals In The Sector?
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Alaska Air Reports Another Strong Quarter Backed By Rapid Capacity Growth And Lower Fuel Costs Alaska Air Q2'16 Earnings Preview: Capacity Growth, Fiscal Discipline To Support Earnings How Will The Virgin America Deal Impact Alaska Air's Share Repurchase Program? How Will The Virgin America Merger Impact Alaska Air's Cost Of Capital? Alaska Air's Earnings Rise On The Back Of Rapid Capacity Growth And Lower Fuel Costs The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alaska Air Reports Another Strong Quarter Backed By Rapid Capacity Growth And Lower Fuel Costs Alaska Air Q2'16 Earnings Preview: Capacity Growth, Fiscal Discipline To Support Earnings How Will The Virgin America Deal Impact Alaska Air's Share Repurchase Program? How Will Alaska Air Benefit From The Virgin America Deal Operationally? Alaska Air's Earnings Rise On The Back Of Rapid Capacity Growth And Lower Fuel Costs The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Keeping with the company's guidance to increase capacity by 6% in the first quarter of the year 2017, the carrier saw its capacity rise 6.4% in January. Why Is Alaska Air Acquiring Virgin America? How Will Alaska Air Benefit From The Virgin America Deal Operationally?
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2017-02-14 00:00:00 UTC
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JetBlue Follows American Airlines and Cuts Capacity in Cuba
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AAL
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https://www.nasdaq.com/articles/jetblue-follows-american-airlines-and-cuts-capacity-cuba-2017-02-14
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At this time last year, U.S. airlines were developing ambitious growth plans for Cuba, after it became legal to offer scheduled service to the Caribbean island nation for the first time in more than half a century. As the top airlines in South Florida, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) had the most ambitious plans for flying to Cuba.
However, U.S. airlines haven't had much success during their first few months of operating scheduled service to Cuba. As a result, American Airlines announced capacity cuts in Cuba back in November. Last week, JetBlue joined its larger rival in slashing capacity there.
JetBlue will cut its capacity in Cuba in early May. Image source: JetBlue Airways.
A giant land grab
The recent wave of capacity cuts in Cuba has a lot to do with the circumstances under which U.S. airlines entered the market last year.
Under the U.S.-Cuba aviation agreement signed a year ago this week, U.S. airlines are allowed to operate up to 110 daily flights to Cuba. This consists of 20 daily flights to Havana and 10 daily flights to each of nine other international airports.
The U.S. Department of Transportation ran a competitive route allocation process to determine which airlines would be allowed to fly which routes to Cuba. This sparked a "land grab" of sorts in Havana, as airlines tried to obtain as many of the limited slots there as they could justify.
Indeed, American Airlines and JetBlue each requested authority to fly 12 times a day to Havana . Ultimately, both got less than half of the Havana flights they had requested. By contrast, there wasn't much demand for route authorities to the other nine international airports, so American and JetBlue received the rights to all of the non-Havana routes they had requested.
Trouble in paradise
While airlines were eager to introduce service to Cuba last year, they have found that making a profit there isn't easy. U.S. residents still aren't allowed to visit Cuba as tourists, which cuts off the greatest potential source of traffic. To visit Cuba, you must certify that your travel falls into one of 12 permitted categories, including visiting family; educational, religious, or humanitarian activities; and participating in various cultural programs.
As a result, there hasn't been nearly enough demand to fill the massive amount of capacity that has entered the market. In late November, American Airlines announced that it would drop one of two daily flights in three secondary cities it had only recently begun serving in Cuba. These cuts will be implemented this week. American also hopes to switch to smaller aircraft on a few routes.
American Airlines is slashing capacity on routes to secondary cities in Cuba. Image source: American Airlines.
JetBlue has had just as much trouble filling its flights at sensible fares. It doesn't plan to drop any routes for now, but it recently downgraded all of its routes to Cuba to smaller aircraft. Flights to Havana will now use 150-seat A320s instead of 200-seat A321s, while flights to other cities in Cuba will use 100-seat E190s, down from 150-seat A320s.
No big surprise here
Some pundits have attributed the recent flight cuts in Cuba to overly optimistic demand forecasts on the part of U.S. airlines. That's certainly true, to some extent.
However, the DOT allocation process also encouraged airlines to "overbid." In other recent route allocation proceedings, the DOT has shown a clear preference for carriers that promise to use bigger aircraft. For example, wasn't surprising whatsoever that the DOT rejected tiny regional carrier Silver Airways' proposal to fly 34-seat turboprops to Havana .
Thus, JetBlue and American Airlines (and their peers) had a strong incentive to request more flights than they wanted, with larger airplanes than they needed. This essentially allowed them to reserve scarce route authorities to Cuba, which could become extremely valuable in the long run -- especially if the tourism ban is ever lifted.
Now that the dust has settled, JetBlue and American have started to right-size their operations in Cuba. Outside of Havana, there are plenty of unused route authorities. This allowed American Airlines to reduce the number of flights on its routes to Holguin, Santa Clara, and Varadero. If demand improves, it will have no trouble reinstating service.
The situation is more complicated in Havana. While the market is oversupplied right now, it's not feasible to cut flights, because other airlines would take over any unused slots in order to profit from the long-term growth of U.S.-Cuba travel.
However, now that JetBlue has demonstrated a good-faith effort to make service with a 200-seat A321 work, it can easily downgrade service to a smaller A320 for as long as necessary. It has taken the same approach outside of Havana, cutting capacity by switching to smaller airplanes rather than operating fewer flights.
Flying to Cuba could become an extremely profitable enterprise a decade from now. But at the moment, it's a loss-leader. Investors should expect to see further capacity rationalization in Cuba this year as airlines try to mitigate their losses while continuing to develop the market.
10 stocks we like better than JetBlue Airways
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and JetBlue Airways wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 6, 2017
Adam Levine-Weinberg owns shares of JetBlue Airways and is long January 2019 $10 calls on JetBlue Airways. The Motley Fool recommends JetBlue Airways. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As the top airlines in South Florida, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) had the most ambitious plans for flying to Cuba. A giant land grab The recent wave of capacity cuts in Cuba has a lot to do with the circumstances under which U.S. airlines entered the market last year. In late November, American Airlines announced that it would drop one of two daily flights in three secondary cities it had only recently begun serving in Cuba.
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As the top airlines in South Florida, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) had the most ambitious plans for flying to Cuba. At this time last year, U.S. airlines were developing ambitious growth plans for Cuba, after it became legal to offer scheduled service to the Caribbean island nation for the first time in more than half a century. As a result, American Airlines announced capacity cuts in Cuba back in November.
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As the top airlines in South Florida, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) had the most ambitious plans for flying to Cuba. Indeed, American Airlines and JetBlue each requested authority to fly 12 times a day to Havana . American Airlines is slashing capacity on routes to secondary cities in Cuba.
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As the top airlines in South Florida, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) had the most ambitious plans for flying to Cuba. Under the U.S.-Cuba aviation agreement signed a year ago this week, U.S. airlines are allowed to operate up to 110 daily flights to Cuba. Indeed, American Airlines and JetBlue each requested authority to fly 12 times a day to Havana .
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3f87af05-6a8a-4136-affd-c9257ab9c5e9
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7640.0
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2017-02-14 00:00:00 UTC
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Buffett and Berkshire Invest Heavily in Southwest Airlines
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AAL
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https://www.nasdaq.com/articles/buffett-and-berkshire-invest-heavily-southwest-airlines-2017-02-14
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Warren Buffett's Berkshire Hathaway Inc. BRK.A bought an eye-popping 43.2 million shares of Southwest Airlines in the fourth quarter. Berkshire's new position in the low-cost carrier is valued at $2.2 billion, according to a federal regulatory filing published Tuesday, February 14.
Southwest Airlines Co. LUV shares rose 0.89% in after-hours trading Tuesday, to $55.80. And the U.S. airline currently holds a Zacks Rank #2 (BUY). Southwest is the No. 4 airline in the U.S. in terms of traffic, but it holds the top spot for domestic flights.
The massive bet on Southwest signals a shift in Buffet's decades-long stance on airlines being money-losers. Berkshire's fourth quarter faith in Southwest comes after the Omaha, Nebraska-based company invested heavily in American Airlines Group, Inc. AAL , Delta Air Lines, Inc. DAL and United Continental Holdings, Inc. UAL in the third quarter. It then added to all three of those positions in the fourth quarter.
In the first nine months of 2016, Berkshire bought a total of $5.2 billion worth of stocks , according to a regulatory filing.
Berkshire invested a total of about $9.3 billion in airlines at the end of 2016 . Berkshire's investment heavy fourth quarter seemingly signals the company's confidence in the market and business climate, post election.
"We've, net, bought $12 billion of common stocks since the election," Buffet said in a recent interview with Charlie Rose.
Top executives from major U.S. airlines, including Southwest CEO Gary Kelly, met with President Donald Trump last week . Despite Trump's recent controversial travel ban from seven Muslim-majority nations, which saw airline stocks fall temporarily , it seems the airline industry could start to see an uptick.
Which Stocks are Zacks Experts Talking About?
Stocks in today's headlines may be tempting buys, but how would you like to peek behind the curtain to see all the best stocks Zacks' team of experts are recommending? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF and options moves...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). Click here for all Zacks trades >>
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Southwest Airlines Company (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire's fourth quarter faith in Southwest comes after the Omaha, Nebraska-based company invested heavily in American Airlines Group, Inc. AAL , Delta Air Lines, Inc. DAL and United Continental Holdings, Inc. UAL in the third quarter. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Berkshire's investment heavy fourth quarter seemingly signals the company's confidence in the market and business climate, post election.
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Berkshire's fourth quarter faith in Southwest comes after the Omaha, Nebraska-based company invested heavily in American Airlines Group, Inc. AAL , Delta Air Lines, Inc. DAL and United Continental Holdings, Inc. UAL in the third quarter. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire's fourth quarter faith in Southwest comes after the Omaha, Nebraska-based company invested heavily in American Airlines Group, Inc. AAL , Delta Air Lines, Inc. DAL and United Continental Holdings, Inc. UAL in the third quarter. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF and options moves...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy).
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Berkshire's fourth quarter faith in Southwest comes after the Omaha, Nebraska-based company invested heavily in American Airlines Group, Inc. AAL , Delta Air Lines, Inc. DAL and United Continental Holdings, Inc. UAL in the third quarter. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. And the U.S. airline currently holds a Zacks Rank #2 (BUY).
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0a85135f-2020-4e83-abd0-1c6f85bb7275
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7641.0
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2017-02-14 00:00:00 UTC
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Is the Options Market Predicting a Spike in American Airlines (AAL) Stock?
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AAL
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https://www.nasdaq.com/articles/is-the-options-market-predicting-a-spike-in-american-airlines-aal-stock-2017-02-14
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Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. That is because the February 17 th , 2017 $35 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for American Airlines shares, but what is the fundamental picture for the company? Currently, American Airlines is a Zacks Rank #3 (Hold) in the Transportation - Airlineindustry that ranks in the Top 22% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased earnings estimates for the current quarter, while three analysts have revised estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 57 cents per share to 53 cents per share in that period.
Given the way analysts feel about American Airlines right now, this huge implied volatility could mean there's a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Each week, our very own Dave Bartosiak gives his top options trades. Check out his recent live analysis and options trade for the AMZN earnings report completely free. See it here: Bartosiak: Trading Amazon's AMZN Earnings with Options or check out the embedded video below for more details:
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
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bc271b61-bcb4-42e8-94cf-38e8925d32b0
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7642.0
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2017-02-10 00:00:00 UTC
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American Airlines Group (AAL) January Load Factor Declines
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-aal-january-load-factor-declines-2017-02-10
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Premier passenger carrier, American Airlines Group Inc.AAL posted a decline in traffic in the month of January. Traffic - measured in revenue passenger miles (RPMs) - was 17 billion, down 0.3% from the year-ago figure. The metric was hurt mainly due to a disappointing performance on the domestic front.
On a year-over-year basis, consolidated capacity (available seat miles/ASMs) expanded 1.2% to 21.68 billion. A 29.1% capacity expansion in the Pacific area contributed to the overall increase in the metric.
Load factor or percentage of seats filled by passengers decreased 110 basis points to 78.6% as capacity expanded, while traffic contracted leading to empty planes.
American Airlines, which carries a Zacks Rank #3 (Hold), still expects total revenue per available seat miles (TRASM: a key measure of unit revenues) for the first quarter of 2017 to grow in the band of 2.5-4.5% (year over year). The carrier still expects pre-tax margin - excluding special items - in the first quarter to be approximately in the range of 3-5%.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Capacity Woes to Return?
Capacity-related woes had plagued stocks in the airline space not so long ago. Therefore, the January traffic reports of most carriers have highlighted that such fears might haunt the space once again. Apart from American Airlines, traffic updates from the likes of Delta Air Lines DAL , United Continental Holdings UAL and Alaska Air Group ALK have revealed a fall in load factor as capacity expansion outweighed traffic growth.
In fact, capacity related fears among investors had been re-ignited last month itself when American Airlines, on its fourth-quarterearnings call hinted at increasing domestic capacity while reducing the same internationally in 2017.
Stock Lifted After Trump Promise
Despite posting unimpressive traffic numbers, shares of American Airlines appreciated on Jan 9, like its peers in the airline space. This was primarily because of the meeting of airline executives with President Donald Trump, which was attended by executives of leading carriers like Delta and United Continental Holdings.
American Airlines Group, Inc. Price
American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote
The outcome of the interaction lifted airline stocks as President Trump promised to set right the obsolete US air traffic control system. He was also apparently critical of the current modernization efforts on which carriers spend a fortune.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Premier passenger carrier, American Airlines Group Inc.AAL posted a decline in traffic in the month of January. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Load factor or percentage of seats filled by passengers decreased 110 basis points to 78.6% as capacity expanded, while traffic contracted leading to empty planes.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Premier passenger carrier, American Airlines Group Inc.AAL posted a decline in traffic in the month of January. Apart from American Airlines, traffic updates from the likes of Delta Air Lines DAL , United Continental Holdings UAL and Alaska Air Group ALK have revealed a fall in load factor as capacity expansion outweighed traffic growth.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Premier passenger carrier, American Airlines Group Inc.AAL posted a decline in traffic in the month of January. Apart from American Airlines, traffic updates from the likes of Delta Air Lines DAL , United Continental Holdings UAL and Alaska Air Group ALK have revealed a fall in load factor as capacity expansion outweighed traffic growth.
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Premier passenger carrier, American Airlines Group Inc.AAL posted a decline in traffic in the month of January. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines, which carries a Zacks Rank #3 (Hold), still expects total revenue per available seat miles (TRASM: a key measure of unit revenues) for the first quarter of 2017 to grow in the band of 2.5-4.5% (year over year).
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342cfd50-7641-462a-adf0-8d5aff9f12c9
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7643.0
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2017-02-08 00:00:00 UTC
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American Airlines Group, Inc. (AAL) Ex-Dividend Date Scheduled for February 09, 2017
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-aal-ex-dividend-date-scheduled-february-09-2017-2017-02-08
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American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on February 09, 2017. A cash dividend payment of $0.1 per share is scheduled to be paid on February 27, 2017. Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 11th quarter that AAL has paid the same dividend.
The previous trading day's last sale of AAL was $45.17, representing a -10.8% decrease from the 52 week high of $50.64 and a 81.77% increase over the 52 week low of $24.85.
AAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and Delta Air Lines, Inc. ( DAL ). AAL's current earnings per share, an indicator of a company's profitability, is $4.78. Zacks Investment Research reports AAL's forecasted earnings growth in 2017 as -19.89%, compared to an industry average of -3.7%.
For more information on the declaration, record and payment dates, visit the AAL Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAL through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAL as a top-10 holding:
iShares Transportation AverageETF ( IYT )
Guggenheim S&P 500 Equal Weight Industrials ETF ( RGI )
PowerShares Dynamic LargeCap Value ( PWV )
iShares Russell Mid-cap Value ETF ( IWS )
Direxion NASDAQ-100 Equal Weighted Index Shares ( QQQE ).
The top-performing ETF of this group is IYT with an increase of 18.69% over the last 100 days. It also has the highest percent weighting of AAL at 3.37%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment. AAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and Delta Air Lines, Inc. ( DAL ). Zacks Investment Research reports AAL's forecasted earnings growth in 2017 as -19.89%, compared to an industry average of -3.7%.
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The following ETF(s) have AAL as a top-10 holding: iShares Transportation AverageETF ( IYT ) Guggenheim S&P 500 Equal Weight Industrials ETF ( RGI ) PowerShares Dynamic LargeCap Value ( PWV ) iShares Russell Mid-cap Value ETF ( IWS ) Direxion NASDAQ-100 Equal Weighted Index Shares ( QQQE ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on February 09, 2017.
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Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAL Dividend History page. The following ETF(s) have AAL as a top-10 holding: iShares Transportation AverageETF ( IYT ) Guggenheim S&P 500 Equal Weight Industrials ETF ( RGI ) PowerShares Dynamic LargeCap Value ( PWV ) iShares Russell Mid-cap Value ETF ( IWS ) Direxion NASDAQ-100 Equal Weighted Index Shares ( QQQE ).
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Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment. American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on February 09, 2017. This marks the 11th quarter that AAL has paid the same dividend.
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b86c50ac-0fc2-4e4c-bc47-580e334231bb
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7644.0
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2017-02-06 00:00:00 UTC
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Why 1 Analyst Picks Delta Air Lines Over American Airlines
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AAL
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https://www.nasdaq.com/articles/why-1-analyst-picks-delta-air-lines-over-american-airlines-2017-02-06
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nan
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"Blue Horseshoe loves Anacott Steel."
Once upon a time, these five words from the movie Wall Street helped spin a tale of corporate raiders attempting to kill an airline to get at its pension fund. Today, five other words highlight the potential for more airline profits: "Bernstein loves Delta Air Lines (NYSE: DAL) ."
This morning, analysts at investment banker Bernstein published two new upgrades. On the one hand, Bernstein likes American Airlines (NASDAQ: AAL) slightly more than it once did, and has raised its rating to "market perform," but still has reservations about the stock. On the other hand, Bernstein has no reservations about recommending that you buy shares of Delta stock.
Here are three things you need to know.
1. Donald Trump saves the airlines
Neither Delta nor American Airlines had a particularly fun time in 2016. Although Delta shares are up 17% over the past 52 weeks, and American Airline stock is up 24%, both airline stocks spent most of 2016 underwater. Things only really turned around for them after it became clear Donald Trump had won the 2016 presidential election .
Bernstein believes that this turnaround has the potential to keep going, "with the economy poised to gather steam and the possibility that tax reform both stimulates economic activity (aka business travel) and puts more money in consumer wallets." The analyst is particularly hopeful that Delta Air Lines will profit under the Trump administration.
2. Why Delta could thrive
As explained this morning in a write-up on StreetInsider.com , "the conventional view seems to be that [business] can't get any better at DAL," and that with operating profit margins now north of 17.5%, the company is as profitable as it will ever become. Bernstein, on the other hand, says it is uncomfortable "putting a cap on margin potential" at Delta, calling the company "a pioneer in revenue management" and predicting the company will continue to use its "considerable free cash flow" to pay down debt, buy back shares, and increase dividends, even as it grows its revenue.
Accordingly, Bernstein has decided to raise its rating on Delta stock to outperform, and raise its price target as well, to $61 a share -- about 26% above where the stock sits today.
3. Why American Airlines won't
In contrast, Bernstein worries that American Airlines' debt load is too big to permit the stock to lift off. "Leverage is high" at American, worries the analyst, and "the risk of being long a highly levered 2018/19 cost / capital play into the uncertain geopolitical, economic, and interest rate environment leaves us generally less bullish on AAL in the near term."
And here's another thing. You might think that lower tax rates under a Trump administration would benefit American stock as much as Delta, but Bernstein argues that this is not the case. After losing money in six out of the last 10 years, American Airlines has built up an "abnormally large pile of [net operating losses]." As a result, American won't be paying much in taxes in any case, at any tax rate. Perversely, this means that lower tax rates won't help American as much as they would benefit Delta. (According to data from S&P Global Market Intelligence , Delta has been profitable in all but two years of the last decade.)
The most important thing: Cash
One final point: Delta Air Lines generated $3.8 billion in positive free cash flow in 2016 -- not too far off from its reported $4.4 billion in GAAP net income. American Airlines in contrast, hasn't yet released its fiscal 2016 cash flow statement. We do know, however, that American generated only $324 million in positive FCF over its last four reported quarters -- a number significantly below last year's GAAP net income total of $2.7 billion. This is another reason to prefer Delta stock over American Airlines stock.
According to Bernstein, Delta is likely to generate $9 billion in positive free cash flow over the next three years (so averaging $3 billion annually). At a $35.5 billion market cap, that works to a price-to-free-cash-flow ratio of less than 12 for Delta stock, versus a much higher P/FCF ratio for American. In Bernstein's opinion, this makes Delta stock the safer bet.
I agree.
10 stocks we like better than Delta Air Lines
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*Stock Advisor returns as of February 6, 2017
Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the one hand, Bernstein likes American Airlines (NASDAQ: AAL) slightly more than it once did, and has raised its rating to "market perform," but still has reservations about the stock. "Leverage is high" at American, worries the analyst, and "the risk of being long a highly levered 2018/19 cost / capital play into the uncertain geopolitical, economic, and interest rate environment leaves us generally less bullish on AAL in the near term." Once upon a time, these five words from the movie Wall Street helped spin a tale of corporate raiders attempting to kill an airline to get at its pension fund.
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On the one hand, Bernstein likes American Airlines (NASDAQ: AAL) slightly more than it once did, and has raised its rating to "market perform," but still has reservations about the stock. "Leverage is high" at American, worries the analyst, and "the risk of being long a highly levered 2018/19 cost / capital play into the uncertain geopolitical, economic, and interest rate environment leaves us generally less bullish on AAL in the near term." Today, five other words highlight the potential for more airline profits: "Bernstein loves Delta Air Lines (NYSE: DAL) ."
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On the one hand, Bernstein likes American Airlines (NASDAQ: AAL) slightly more than it once did, and has raised its rating to "market perform," but still has reservations about the stock. "Leverage is high" at American, worries the analyst, and "the risk of being long a highly levered 2018/19 cost / capital play into the uncertain geopolitical, economic, and interest rate environment leaves us generally less bullish on AAL in the near term." Although Delta shares are up 17% over the past 52 weeks, and American Airline stock is up 24%, both airline stocks spent most of 2016 underwater.
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On the one hand, Bernstein likes American Airlines (NASDAQ: AAL) slightly more than it once did, and has raised its rating to "market perform," but still has reservations about the stock. "Leverage is high" at American, worries the analyst, and "the risk of being long a highly levered 2018/19 cost / capital play into the uncertain geopolitical, economic, and interest rate environment leaves us generally less bullish on AAL in the near term." Donald Trump saves the airlines Neither Delta nor American Airlines had a particularly fun time in 2016.
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fe231268-4c43-4521-8804-70ddb6d69944
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7645.0
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2017-02-06 00:00:00 UTC
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Delta Air Lines January Load Factor Declines, PRASM Down
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-january-load-factor-declines-prasm-down-2017-02-06
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nan
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Atlanta, GA-based Delta Air LinesDAL unveiled disappointing traffic data for Jan 2017. Consolidated traffic - measured in revenue passenger miles (RPMs) - came in at 15.6 billion, up 0.4% year over year. While domestic RPMs climbed 3.1%, it declined 3.6% on the international front.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) improved 0.6% to 19.3 billion. The metric expanded 3.4% domestically but contracted 3.7% on the international front. Moreover, the load factor, or percentage of seats filled by passengers, decreased to 81.2% from 81.3% recorded a year ago. This is because capacity expansion outweighed traffic growth for the month.
Consolidated passenger unit revenue (PRASM: a key measure of unit revenue) declined 2.5% year over year in the month. Winter storm Jonas had a negative impact on the metric. Delta expects the metric to improve in February and March as PRASM for the first quarter is projected in the range of flat to a 2% increase in the first quarter.
We note that Delta is not the only company to have come up with an upbeat unit revenue guidance. Peers like United Continental Holdings UAL and American Airlines Group AAL are also bullish on the metric as they strive to return to unit revenue growth.
Capacity Related Fears Haunt Investors
Delta's January traffic report indicated domestic capacity expansion and contraction internationally. This was quite similar to the commentary issued by American Airlines last month, while releasing fourth-quarter results, wherein it had hinted at increasing domestic capacity while reducing the same internationally in 2017. Following the update, airline stocks lost substantially on investor fears that capacity-related woes would plague the industry again.
Apart from capacity-related fears, technological glitches have been hurting airline stocks of late. Over the last one year, some major carriers like Southwest Airlines LUV have been adversely impacted by technological issues. Delta Air Lines was the latest victim of a disruption in operations due to technological failure. The carrier suffered a computer outage on Jan 29, leading to cancellation of multiple flights. The issue, however, has been resolved. Given that technological infrastructure is a key expense for airlines, profitability of carriers could be affected in the event of such malfunctions.
Price Performance
Delta's moderate fourth-quarter earnings report , released last month, the technological failure and unimpressive January traffic data, were the reasons for the stock underperforming the Zacks categorized Transportation-Airline industry over the last one month. The stock lost 3.78%, while the industry increased 1.4% over the same period.
Zacks Rank & Another Key Pick
Currently, Delta has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today's most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
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Southwest Airlines Company (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Peers like United Continental Holdings UAL and American Airlines Group AAL are also bullish on the metric as they strive to return to unit revenue growth. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, the load factor, or percentage of seats filled by passengers, decreased to 81.2% from 81.3% recorded a year ago.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Peers like United Continental Holdings UAL and American Airlines Group AAL are also bullish on the metric as they strive to return to unit revenue growth. Consolidated passenger unit revenue (PRASM: a key measure of unit revenue) declined 2.5% year over year in the month.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Peers like United Continental Holdings UAL and American Airlines Group AAL are also bullish on the metric as they strive to return to unit revenue growth. Consolidated passenger unit revenue (PRASM: a key measure of unit revenue) declined 2.5% year over year in the month.
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Peers like United Continental Holdings UAL and American Airlines Group AAL are also bullish on the metric as they strive to return to unit revenue growth. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. This was quite similar to the commentary issued by American Airlines last month, while releasing fourth-quarter results, wherein it had hinted at increasing domestic capacity while reducing the same internationally in 2017.
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0b9af85d-b4fb-43d3-97eb-85e3837ef1d1
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7646.0
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2017-02-03 00:00:00 UTC
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Sum Up The Pieces: QQXT Could Be Worth $47
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AAL
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https://www.nasdaq.com/articles/sum-pieces-qqxt-could-be-worth-47-2017-02-03
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust NASDAQ-100 Ex-Technology Sector Index Fund ETF (Symbol: QQXT), we found that the implied analyst target price for the ETF based upon its underlying holdings is $47.22 per unit.
With QQXT trading at a recent price near $42.47 per unit, that means that analysts see 11.18% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of QQXT's underlying holdings with notable upside to their analyst target prices are Vodafone Group plc (Symbol: VOD), American Airlines Group Inc (Symbol: AAL), and Hologic, Inc. (Symbol: HOLX). Although VOD has traded at a recent price of $24.69/share, the average analyst target is 19.40% higher at $29.48/share. Similarly, AAL has 18.15% upside from the recent share price of $44.01 if the average analyst target price of $52.00/share is reached, and analysts on average are expecting HOLX to reach a target price of $44.31/share, which is 12.25% above the recent price of $39.47. Below is a twelve month price history chart comparing the stock performance of VOD, AAL, and HOLX:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is a twelve month price history chart comparing the stock performance of VOD, AAL, and HOLX: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of QQXT's underlying holdings with notable upside to their analyst target prices are Vodafone Group plc (Symbol: VOD), American Airlines Group Inc (Symbol: AAL), and Hologic, Inc. (Symbol: HOLX). Similarly, AAL has 18.15% upside from the recent share price of $44.01 if the average analyst target price of $52.00/share is reached, and analysts on average are expecting HOLX to reach a target price of $44.31/share, which is 12.25% above the recent price of $39.47.
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Three of QQXT's underlying holdings with notable upside to their analyst target prices are Vodafone Group plc (Symbol: VOD), American Airlines Group Inc (Symbol: AAL), and Hologic, Inc. (Symbol: HOLX). Similarly, AAL has 18.15% upside from the recent share price of $44.01 if the average analyst target price of $52.00/share is reached, and analysts on average are expecting HOLX to reach a target price of $44.31/share, which is 12.25% above the recent price of $39.47. Below is a twelve month price history chart comparing the stock performance of VOD, AAL, and HOLX: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, AAL has 18.15% upside from the recent share price of $44.01 if the average analyst target price of $52.00/share is reached, and analysts on average are expecting HOLX to reach a target price of $44.31/share, which is 12.25% above the recent price of $39.47. Below is a twelve month price history chart comparing the stock performance of VOD, AAL, and HOLX: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of QQXT's underlying holdings with notable upside to their analyst target prices are Vodafone Group plc (Symbol: VOD), American Airlines Group Inc (Symbol: AAL), and Hologic, Inc. (Symbol: HOLX).
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Below is a twelve month price history chart comparing the stock performance of VOD, AAL, and HOLX: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of QQXT's underlying holdings with notable upside to their analyst target prices are Vodafone Group plc (Symbol: VOD), American Airlines Group Inc (Symbol: AAL), and Hologic, Inc. (Symbol: HOLX). Similarly, AAL has 18.15% upside from the recent share price of $44.01 if the average analyst target price of $52.00/share is reached, and analysts on average are expecting HOLX to reach a target price of $44.31/share, which is 12.25% above the recent price of $39.47.
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920ae826-bebe-4a4a-b64d-368bcabec694
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7647.0
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2017-02-02 00:00:00 UTC
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Airline Stocks Falter, But Not Nosediving Yet
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AAL
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https://www.nasdaq.com/articles/airline-stocks-falter-not-nosediving-yet-2017-02-02
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nan
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nan
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InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
American Airlines Group Inc (NASDAQ: AAL ) has come under some pressure recently, and the last couple of days in particular have been nasty ones. In just a week, its chart went from bullish to bearish.
Let's take a closer look.
As you can see below, AAL stock had been on a roll since bottoming out in mid-October and has been attempting to break above resistance at $50 over the last several months. It has failed each time, and following the latest instance, the shares pulled back drastically.
The stock is now below its 50-day moving average (the blue line) for the first time in months, and the breakdown came on the back of a huge volume spike. It's also worth noting that price support at $45.50 was broken as well.
Time to Grab AAL Stock?
Some may view the weakness as an opportunity to scoop up American Airlines shares at a discount, but from a technical perspective, we need to see them build a base for a week or two on declining volume before considering AAL stock a buy.
The 5 Best Stocks to Buy for Big Emerging Markets Profits
The thing is, American Airlines is not alone - the entire airline sector has felt some pressure lately. In fact, the U.S. Global Jets ETF's (NYSEARCA: JETS ) chart looks extremely familiar. After rallying since October and consolidating the last two months, JETS failed at breaking above resistance and is now trading below its 50-day moving average.
A slew of earnings reports have been released from the airline stocks over the last week, and the results certainly weren't bad enough to issue sell signals. If anything, there could have been some profit taking on "buy the rumor, sell the news."
Instead, there are two much bigger issues currently weighing on the sector. The first is President Donald Trump's immigration ban, and the second is the potential increase in capacity in the U.S. While the Trump situation has garnered a lot of news and negative feedback, it's a short-term issue and should not have a major effect on airline profits.
On the other hand, more capacity could lead to price wars and lower margins.
Bottom Line for Airline Stocks
In the end, my view on the airline stocks remains bullish over the long term, and once the sector is able to build a base I'll be on the lookout to move some money into either individual stocks or the ETF - whichever provides the more attractive opportunity at the time.
I don't believe there's a reason to try and be the hero today. Instead, use the pullback to buy the stocks that are on sale in the coming weeks.
Matthew McCall is founder and president of Penn Financial Group, an investment advisory firm. Matt also is Editor of FUTR Stocks and the ETF Bulletin. Earlier this year, Matt and Hilary Kramer teamed up onBreakout Stocks where Matt serves as the Co-Editor. Most recently, Matt and Hilary joined forces again. This time, they are helping individual investors make money trading ETFs. For more on their latest project, visit www.etfedgesummit.com .
More From InvestorPlace
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The post Airline Stocks Falter, But Not Nosediving Yet appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some may view the weakness as an opportunity to scoop up American Airlines shares at a discount, but from a technical perspective, we need to see them build a base for a week or two on declining volume before considering AAL stock a buy. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group Inc (NASDAQ: AAL ) has come under some pressure recently, and the last couple of days in particular have been nasty ones. As you can see below, AAL stock had been on a roll since bottoming out in mid-October and has been attempting to break above resistance at $50 over the last several months.
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InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group Inc (NASDAQ: AAL ) has come under some pressure recently, and the last couple of days in particular have been nasty ones. As you can see below, AAL stock had been on a roll since bottoming out in mid-October and has been attempting to break above resistance at $50 over the last several months. Time to Grab AAL Stock?
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InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group Inc (NASDAQ: AAL ) has come under some pressure recently, and the last couple of days in particular have been nasty ones. Some may view the weakness as an opportunity to scoop up American Airlines shares at a discount, but from a technical perspective, we need to see them build a base for a week or two on declining volume before considering AAL stock a buy. As you can see below, AAL stock had been on a roll since bottoming out in mid-October and has been attempting to break above resistance at $50 over the last several months.
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Time to Grab AAL Stock? InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group Inc (NASDAQ: AAL ) has come under some pressure recently, and the last couple of days in particular have been nasty ones. As you can see below, AAL stock had been on a roll since bottoming out in mid-October and has been attempting to break above resistance at $50 over the last several months.
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f7f4a99d-1686-4452-93c8-0da13cca7ce8
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7648.0
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2017-02-02 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Johnson & Johnson, PayPal, Thermo Fisher, Celgene and American Airlines
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-johnson-johnson-paypal-thermo-fisher-celgene-and
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nan
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For Immediate Release
Chicago, IL - February 02, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Johnson & Johnson ( NYSE: JNJ - Free Report ), PayPal ( NASDAQ: PYPL - Free Report ), Thermo Fisher ( NYSE: TMO - Free Report ), Celgene ( NASDAQ: CELG - Free Report ) and American Airlines ( NASDAQ: AAL - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday's Analyst Blog:
Top Research Reports for Thursday: JNJ, PYPL, TMO
Today's Research Daily features new research reports on 12 major stocks, including Johnson & Johnson ( NYSE: JNJ - Free Report ), PayPal ( NASDAQ: PYPL - Free Report ) and Thermo Fisher ( NYSE: TMO - Free Report ).
Johnson & Johnson have gained +8.5% over the last year, widely outperforming the large-cap pharma space (down -2.4%). J&J reported mixed fourth-quarter results, beating on earnings but missing on sales. However, the 2017 sales outlook was disappointing due to an expected slowdown in Pharma sales as a number of key growth drivers like Remicade and Concerta are facing competition.
While the company is faced with a number of headwinds like unfavorable currency movements, increased competition from generics, pricing pressures and an uncertain global macroeconomic backdrop, the analyst believes that JNJ's diversified business model, deep product pipeline, lack of cyclicality and financial strength position it for continued momentum going forward. (You can read the full research report on Johnson & Johnson here. )
PayPal shares have underperformed the Zacks Internet - Software industry over the last one year, gaining +7.3% vs +9%. However, the worldwide online payments system operator delivered decent fourth-quarter 2016 results, matching expectations on both counts. The analyst stresses that the company will continue to gain from partnerships and mobile centrism. PayPal's ongoing strategic partnerships with Visa and MasterCard offer great flexibility and choice to consumers.
Partnerships with Facebook, Google, and Alibaba are also delivering positive results. Venmo continues to contribute significantly to the company's mobile payment volume. However, continuous exposure to foreign exchange and interest rate risks is a concern. (You can read the full research report on PayPal here. )
Thermo Fisher have outperformed the broader medical sector (up more than 16.6% over the last one year vs -3.6% ), Thermo Fisher ended the year 2016 on a mixed note with adjusted earnings ahead of expectations and revenues lagging the same. However, the analyst likes the company's recent product launches along with strong emerging markets growth.
Thermo Fisher's acquisition of FEI Company is also going to significantly facilitate its performance in life-science research. The upcoming integration and expected synergy of Affimetrix is another positive. (You can read the full research report on Thermo Fisher here. )
Other noteworthy reports we are featuring today include Celgene ( NASDAQ: CELG - Free Report ) and American Airlines ( NASDAQ: AAL - Free Report ).
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on JNJ - FREE
Get the full Report on PYPL - FREE
Get the full Report on TMO - FREE
Get the full Report on CELG - FREE
Get the full Report on AAL - FREE
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.
This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Johnson & Johnson (JNJ): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
Thermo Fisher Scientific Inc (TMO): Free Stock Analysis Report
Celgene Corporation (CELG): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include Johnson & Johnson ( NYSE: JNJ - Free Report ), PayPal ( NASDAQ: PYPL - Free Report ), Thermo Fisher ( NYSE: TMO - Free Report ), Celgene ( NASDAQ: CELG - Free Report ) and American Airlines ( NASDAQ: AAL - Free Report ). Other noteworthy reports we are featuring today include Celgene ( NASDAQ: CELG - Free Report ) and American Airlines ( NASDAQ: AAL - Free Report ). Get the full Report on JNJ - FREE Get the full Report on PYPL - FREE Get the full Report on TMO - FREE Get the full Report on CELG - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include Johnson & Johnson ( NYSE: JNJ - Free Report ), PayPal ( NASDAQ: PYPL - Free Report ), Thermo Fisher ( NYSE: TMO - Free Report ), Celgene ( NASDAQ: CELG - Free Report ) and American Airlines ( NASDAQ: AAL - Free Report ). Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Thermo Fisher Scientific Inc (TMO): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Other noteworthy reports we are featuring today include Celgene ( NASDAQ: CELG - Free Report ) and American Airlines ( NASDAQ: AAL - Free Report ).
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Get the full Report on JNJ - FREE Get the full Report on PYPL - FREE Get the full Report on TMO - FREE Get the full Report on CELG - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Thermo Fisher Scientific Inc (TMO): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Johnson & Johnson ( NYSE: JNJ - Free Report ), PayPal ( NASDAQ: PYPL - Free Report ), Thermo Fisher ( NYSE: TMO - Free Report ), Celgene ( NASDAQ: CELG - Free Report ) and American Airlines ( NASDAQ: AAL - Free Report ).
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Stocks recently featured in the blog include Johnson & Johnson ( NYSE: JNJ - Free Report ), PayPal ( NASDAQ: PYPL - Free Report ), Thermo Fisher ( NYSE: TMO - Free Report ), Celgene ( NASDAQ: CELG - Free Report ) and American Airlines ( NASDAQ: AAL - Free Report ). Other noteworthy reports we are featuring today include Celgene ( NASDAQ: CELG - Free Report ) and American Airlines ( NASDAQ: AAL - Free Report ). Get the full Report on JNJ - FREE Get the full Report on PYPL - FREE Get the full Report on TMO - FREE Get the full Report on CELG - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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fe0e057f-3b61-4814-8468-5569dea12d53
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7649.0
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2017-02-02 00:00:00 UTC
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United Continental Wants to Grow in Los Angeles, but It's Not a Good Idea
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AAL
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https://www.nasdaq.com/articles/united-continental-wants-grow-los-angeles-its-not-good-idea-2017-02-02
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nan
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nan
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Four years ago, United Continental (NYSE: UAL) was the largest airline in the world -- and the largest in Los Angeles. Since then, it has fallen to third place on both counts, behind top rivals American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) .
After a management shakeup that began in late 2015 and a subsequent strategic review, United Continental has decided to double down at Los Angeles International Airport (also known as LAX, based on its identifier code). However, based on the vicious competitive environment there, growing in Los Angeles is likely to turn into a costly mistake.
United Airlines wants to grow again in Los Angeles. Image source: Pixabay.
Los Angeles is a brutal market
Many of the biggest U.S. airports are dominated by just one or two airlines. However, LAX is a key exception to that general rule.
American Airlines is now the biggest airline at LAX, thanks to its 2013 merger with U.S. Airways. Even so, its market share lingers just below 20%. Three other airlines also have more than 10% market share at LAX: Delta Air Lines with 16.4%, United Continental with 14.8%, and Southwest Airlines (NYSE: LUV) with 11.6%.
Looking ahead, a fifth major competitor is rising: Alaska Air (NYSE: ALK) . Alaska recently completed its acquisition of Virgin America. While those two carriers each had less than 5% of the market, together they had about 8.5% market share in 2016, with further growth planned in 2017.
It's not especially surprising that the five largest airlines are all jockeying for position at LAX. Los Angeles is a huge market with lots of corporate and leisure travel demand. However, the stiff competition is likely to put pressure on airlines' profit margins -- particularly for higher-cost carriers.
United wants a bigger piece of Los Angeles
On an investor call in mid-2016, United Continental noted that it was the leading carrier in all of its hub markets except for two: Los Angeles and Washington, D.C. That fact, combined with various statements that United was working to refine the mission for each of its hubs, led some analysts to speculate that United Airlines could drop its LAX hub.
This seemed like a very reasonable idea . Unlike American and Delta, United operates a larger hub and international gateway less than 350 miles away, in San Francisco. As a result, there's less of a strategic rationale for needing a hub in Los Angeles.
Lending further credence to this idea, United had already started cutting back in Los Angeles in 2014. At that time, it leased four of its gates to American Airlines, helping its biggest rival surpass it in terms of market share at LAX.
United leased some of its gates to American Airlines in 2014. Image source: American Airlines.
Nevertheless, at its investor day later in 2016, management stated that United is working to get more gates at LAX and to make it easier for customers to connect to other Star Alliance carriers there. Company president Scott Kirby recently confirmed to United's pilots that the airline wants to "claim most or all of a future terminal," according to Bloomberg . Clearly, United has decided to grow at LAX rather than shrink further.
Other airlines want to grow, too
United Continental isn't the only airline looking to grow in Los Angeles. Alaska Air (and merger partner Virgin America) have already been growing there. Virgin America began flying from Los Angeles to Hawaii last year. Alaska Air launched a nonstop flight to Cuba last month and hopes to start flying to Mexico City later this year. More routes could be on the table as the merger integration process continues.
Meanwhile, Southwest Airlines has made Los Angeles its most recent international gateway. For example, in December, it began operating five daily roundtrips to Mexico, spread across three popular beach destinations.
Most importantly of all, Delta Air Lines seems intent on continuing its recent growth in Los Angeles. Later this year, Delta will be switching terminals at LAX in a move that will give it 22 gates, up from 16 previously. This will mark the beginning of a seven-year, $1.9 billion terminal modernization project that could ultimately allow Delta to control up to 27 gates.
Thus, the airline battle in Los Angeles is about to heat up even more. And whereas United essentially donated share to American and Delta through its cutbacks in recent years, it is likely to face a stiff competitive response as it tries to regain market share. Thus, growth at LAX could represent a persistent margin headwind for United in the coming years.
United Airlines is proud of the fact that it has hubs in all of the top five U.S. travel markets. Yet Delta is the most profitable of the legacy carriers despite having hubs in just two of those five metro areas. It isn't necessary to be big everywhere to succeed in the U.S. airline industry. United would probably be better off solidifying its dominance in the more promising San Francisco market than chasing market share in Los Angeles.
10 stocks we like better than United Continental Holdings
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Adam Levine-Weinberg owns shares of Alaska Air Group and Delta Air Lines. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Since then, it has fallen to third place on both counts, behind top rivals American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) . After a management shakeup that began in late 2015 and a subsequent strategic review, United Continental has decided to double down at Los Angeles International Airport (also known as LAX, based on its identifier code). Nevertheless, at its investor day later in 2016, management stated that United is working to get more gates at LAX and to make it easier for customers to connect to other Star Alliance carriers there.
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Since then, it has fallen to third place on both counts, behind top rivals American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) . Three other airlines also have more than 10% market share at LAX: Delta Air Lines with 16.4%, United Continental with 14.8%, and Southwest Airlines (NYSE: LUV) with 11.6%. Most importantly of all, Delta Air Lines seems intent on continuing its recent growth in Los Angeles.
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Since then, it has fallen to third place on both counts, behind top rivals American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) . Three other airlines also have more than 10% market share at LAX: Delta Air Lines with 16.4%, United Continental with 14.8%, and Southwest Airlines (NYSE: LUV) with 11.6%. United wants a bigger piece of Los Angeles On an investor call in mid-2016, United Continental noted that it was the leading carrier in all of its hub markets except for two: Los Angeles and Washington, D.C. That fact, combined with various statements that United was working to refine the mission for each of its hubs, led some analysts to speculate that United Airlines could drop its LAX hub.
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Since then, it has fallen to third place on both counts, behind top rivals American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) . United Airlines wants to grow again in Los Angeles. United leased some of its gates to American Airlines in 2014.
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e3bdfc9d-bcdd-4c4b-a263-fa13c74c98f6
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7650.0
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2017-02-01 00:00:00 UTC
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Will Airline ETF Surge on Earnings or Dive on Trump?
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AAL
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https://www.nasdaq.com/articles/will-airline-etf-surge-earnings-or-dive-trump-2017-02-01
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nan
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nan
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The pure-play aviation ETF U.S. Global Jets ETF (JETS) gained about 22.2% in the last one year (as of January 30, 2017). The industry is in the top 14% of the Zacks Industry Rank at the time of writing, giving bullish signals to the entire industry (see all industrial ETFs here).
However, global airlines may fall on hard times with an embargo on travels from seven Muslim-dominated nations as per President Donald Trump's executive order. The order is likely to hurt airlines both on a short-term and a long-term basis.
The short-term impact will scale up costs as airlines now need to refund for their customers' planned travel to the U.S. or accommodate them in other ways. And over the long term, airlines will likely lose a customer base (read: Welcome Trump Era with These ETFs ).
Against such a backdrop, let's take a look at some of the key fourth-quarter 2016 earnings in the industry and see if the fund can attain further altitude (read: 6 ETFs Breezing Past Dow Jones This Quarter ):
Q4 Results in Detail
Delta Air Lines Inc.DAL kicked off the fourth-quarter earnings season in the airline space with a bottom-line meet and a top-line beat. Operating revenues of $9.458 billion came ahead of the Zacks Consensus Estimate by 1.1%. Revenues fell marginally from the year-ago figure. The carrier's earnings (excluding special items) of $0.82 per share were in line with the Zacks Consensus Estimate. Earnings, however, fell over 30% on a year-over-year basis. The company has a Zacks Rank #3 (Hold) and a VGM (Value-Growth-Momentum) score of 'A'.
United Continental HoldingsUAL posted an earnings beat in the fourth quarter. Earnings (on an adjusted basis) of $1.78 per share beat the Zacks Consensus Estimate by $0.13. Earnings, however, declined 29.9% on a year-over-year basis owing to higher costs. Operating revenues of $9.052 billion, however, fell short of the Zacks Consensus Estimate of $9.059 billion. United Continental has a Zacks Rank #1 (Strong Buy) and a VGM score of 'A'.
Low cost carrier Southwest Airlines Co.LUV came up with a beat on both lines for the fourth quarter. The carrier's earnings (on an adjusted basis) of $0.74 per share beat the Zacks Consensus Estimate of $0.69. Revenues of $5.076 billion edged past the Zacks Consensus Estimate of $5.025 billion and increased 2% year over year. Zacks Rank #2 (Buy) LUV has a VGM score of 'B'. Post earnings release, the stock gained about 9% on January 26.
American Airlines Group Inc .'s AAL fourth quarter 2016 earnings (adjusted) of $0.92 per share were in line with the Zacks Consensus Estimate. Quarterly earnings decreased significantly year over year. Higher costs hurt the bottom line. Revenues of $9.79 billion were 1.7% above the year-ago figure and edged past the Zacks Consensus Estimate of $9.77 billion. Zacks Rank #2 AAL has a VGM score of 'A'.
Low-cost carrier JetBlue Airways Corporation 's JBLU fourth-quarter earnings (excluding special items) of $0.50 per share beat the Zacks Consensus Estimate by a penny. However, earnings dropped 10.4% from the year-ago figure due to higher costs. Operating revenues of $1.641 billion came in line with the Zacks Consensus Estimate. Revenues improved 2.9% from the year-ago figure. The top line benefited primarily from a 5.4% increase in other revenues. Passenger revenues grew 2.7%. Zacks Rank #4 (Sell) JBLU has a VGM score of 'A.'
Should You Buy JETS?
By now, one must have understood from the beat ratios that the corporate strength in the airlines industry is moderate and recovering. Plus, most of the airlines are restraining capacity growth which should improve unit revenues.
However, oil prices play a crucial role in the airlines' cost structure. If oil prices manage to see an uptrend in the coming days on the OPEC output curb deal, airlines may suffer on profit margins (read: Oil Service ETFs Dip on Mixed Earnings: A Good Entry Point? ).
Nevertheless, investors having a strong stomach for Trump and oil-related risks, faith in the compelling valuation of airline stocks and seeking to play the sector on decent earnings, may target it in the ETF form. Otherwise, the backdrop is risky for airlines investing. Below we highlight the fund in detail:
JETS in Focus
The $65.7 million-fund holds over 33 stocks in its portfolio and is concentrated on a few individual securities. Southwest Airlines (12.75%), United Continental (12.38%), Delta Airlines (11.81%) and American Airlines (11.69%) are the top four elements in the basket. JetBlue holds the ninth position in the fund with 3.53% weight.
The product charges 60 bps in fees. The fund lost about 2.7% in the last 10 trading sessions (as of January 30, 2017) which saw the peak of airlines earnings' releases. The fund has a Zacks ETF Rank #4 with a High risk outlook.
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Southwest Airlines Company (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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's AAL fourth quarter 2016 earnings (adjusted) of $0.92 per share were in line with the Zacks Consensus Estimate. Zacks Rank #2 AAL has a VGM score of 'A'. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. 's AAL fourth quarter 2016 earnings (adjusted) of $0.92 per share were in line with the Zacks Consensus Estimate. Zacks Rank #2 AAL has a VGM score of 'A'.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. 's AAL fourth quarter 2016 earnings (adjusted) of $0.92 per share were in line with the Zacks Consensus Estimate. Zacks Rank #2 AAL has a VGM score of 'A'.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. 's AAL fourth quarter 2016 earnings (adjusted) of $0.92 per share were in line with the Zacks Consensus Estimate. Zacks Rank #2 AAL has a VGM score of 'A'.
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aaa84746-7a03-4173-871b-bb8fb365f738
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7651.0
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2017-01-30 00:00:00 UTC
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Nasdaq 100 Movers: AAL, VOD
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-vod-2017-01-30
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nan
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nan
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In early trading on Monday, shares of Vodafone Group ( VOD ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.4%. Year to date, Vodafone Group registers a 2.0% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.0%. American Airlines Group is lower by about 4.5% looking at the year to date performance.
Two other components making moves today are Cognizant Technology Solutions ( CTSH ), trading down 3.3%, and Seagate Technology ( STX ), trading up 0.5% on the day.
VIDEO: Nasdaq 100 Movers: AAL, VOD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.0%. VIDEO: Nasdaq 100 Movers: AAL, VOD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is lower by about 4.5% looking at the year to date performance.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.0%. VIDEO: Nasdaq 100 Movers: AAL, VOD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.0%. VIDEO: Nasdaq 100 Movers: AAL, VOD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Vodafone Group ( VOD ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.4%.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.0%. VIDEO: Nasdaq 100 Movers: AAL, VOD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is lower by about 4.5% looking at the year to date performance.
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061a416d-5941-4702-a6a5-7c942ae4ae34
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7652.0
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2017-01-30 00:00:00 UTC
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American Airlines Returns to Unit Revenue Growth, Thanks to Brazil
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AAL
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https://www.nasdaq.com/articles/american-airlines-returns-unit-revenue-growth-thanks-brazil-2017-01-30
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nan
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nan
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Last week, American Airlines (NASDAQ: AAL) officially became the first of the U.S. legacy carriers to return to unit revenue growth. The company reported that revenue per available seat mile (RASM) increased 1.3% year over year in the fourth quarter. Passenger revenue per available seat mile (PRASM) -- which excludes cargo revenue, baggage fees, and other non-ticket revenue -- rose 0.2%.
Meanwhile, unit revenue declined last quarter at American's two main competitors, Delta Air Lines (NYSE: DAL) and United Continental (NYSE: UAL) . However, only a small portion of this discrepancy reflects fundamental outperformance by American Airlines.
Instead, American Airlines' strong unit revenue trend primarily reflects its outsized presence in Brazil. Moreover, the company's big revenue gains in that market are just offsetting equally enormous declines suffered in 2015.
American Airlines posted massive unit revenue growth in Brazil. Image source: American Airlines.
Unit revenue rises
Early in the fourth quarter, American Airlines didn't expect to return to unit revenue growth until 2017. In October, the company projected that RASM would decline 1% to 3% in Q4.
However, revenue trends improved sharply as the quarter progressed, particularly following the presidential election. As a result, by early January, American had raised its unit revenue forecast by 3 percentage points. As noted earlier, RASM ultimately rose 1.3%, while PRASM increased 0.2%. (The difference between the two figures was driven by a sharp increase in revenue from American Airlines' new co-branded credit card agreements .)
Delta Air Lines and United Continental both posted notably worse revenue performances. PRASM declined 1.6% year over year at United and declined 2.7% year over year at Delta.
It's all about Brazil
Looking at American Airlines' revenue results on a regional basis, it's clear that Brazil played a huge role in its return to unit revenue growth. In the domestic market, PRASM was roughly flat (up 0.3% year over year). Meanwhile, PRASM declined 7.7% and 4.9% in the transatlantic and transpacific markets, respectively.
The main source of unit revenue growth was Latin America, where PRASM rose 10.2% year over year. And while several different markets within Latin America posted unit revenue growth, Brazil drove the bulk of the gain with a massive 53% increase in PRASM.
The huge gains in Brazil don't reflect strong demand there as much as abysmal demand a year earlier. Indeed, American Airlines executives noted that the company's unit revenue last quarter for routes to Brazil was still down relative to Q4 2014.
The rebound in demand is disproportionately benefiting American Airlines because of its large footprint in Brazil. Indeed, as I noted last year, American carries about twice as much traffic to Brazil as Delta and United combined.
United Airlines didn't benefit as much as American from the rebound in Brazilian travel demand. Image source: The Motley Fool.
Adjusting for geographic concentration, American Airlines and United Airlines probably would have reported similar unit revenue trends last quarter -- with Delta not far behind.
Show me the money
American Airlines' results weren't very impressive from a profitability perspective, either. The company's Q4 adjusted pre-tax income sank by more than $500 million year over year, reaching $773 million. While that was better than the company's initial guidance, Delta and United both posted higher pre-tax profits last quarter.
Looking ahead to the first quarter, American Airlines expects its unit revenue trajectory to improve further, with RASM up 2.5% to 4.5% year over year. Routes to Brazil will continue to generate outsize gains, although domestic revenue trends are also strengthening.
Nevertheless, American Airlines forecast that its pre-tax margin will be just 3% to 5% in Q1, down from 12.9% a year earlier. Sharp cost increases are exceeding unit revenue growth by a wide margin. American's margin guidance is better than the 0.5% to 2.5% increase that United Continental expects, but far short of Delta Air Lines' projected double-digit pre-tax margin.
The unit revenue recovery in Brazil -- and, to a lesser extent, other markets -- is allowing American Airlines to stay profitable despite the impact of rising fuel and labor costs. But with earnings on the decline, debt on the rise, and a profit margin that remains far lower than top rival Delta Air Lines, investors shouldn't get too excited about American Airlines yet.
10 stocks we like better than American Airlines Group
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of January 4, 2017
Adam Levine-Weinberg owns shares of Delta Air Lines. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Last week, American Airlines (NASDAQ: AAL) officially became the first of the U.S. legacy carriers to return to unit revenue growth. And while several different markets within Latin America posted unit revenue growth, Brazil drove the bulk of the gain with a massive 53% increase in PRASM. The unit revenue recovery in Brazil -- and, to a lesser extent, other markets -- is allowing American Airlines to stay profitable despite the impact of rising fuel and labor costs.
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Last week, American Airlines (NASDAQ: AAL) officially became the first of the U.S. legacy carriers to return to unit revenue growth. Meanwhile, unit revenue declined last quarter at American's two main competitors, Delta Air Lines (NYSE: DAL) and United Continental (NYSE: UAL) . Unit revenue rises Early in the fourth quarter, American Airlines didn't expect to return to unit revenue growth until 2017.
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Last week, American Airlines (NASDAQ: AAL) officially became the first of the U.S. legacy carriers to return to unit revenue growth. Unit revenue rises Early in the fourth quarter, American Airlines didn't expect to return to unit revenue growth until 2017. It's all about Brazil Looking at American Airlines' revenue results on a regional basis, it's clear that Brazil played a huge role in its return to unit revenue growth.
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Last week, American Airlines (NASDAQ: AAL) officially became the first of the U.S. legacy carriers to return to unit revenue growth. American Airlines posted massive unit revenue growth in Brazil. Unit revenue rises Early in the fourth quarter, American Airlines didn't expect to return to unit revenue growth until 2017.
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08e8f54c-6d83-4c77-af31-589fd7d682da
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7653.0
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2017-01-29 00:00:00 UTC
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Emirates Announces a 2nd U.S.-Europe Flight: Delta, United, and American Howl
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AAL
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https://www.nasdaq.com/articles/emirates-announces-2nd-us-europe-flight-delta-united-and-american-howl-2017-01-29
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nan
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nan
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Earlier this week, Middle Eastern airline giant Emirates announced that it will launch a nonstop route from Newark Airport, just outside New York City, to Athens in March. The aircraft will continue on from Athens to Emirates' hub in Dubai. This will make it the only airline to provide year-round nonstop service to Athens from the United States.
Emirates is starting another nonstop route from the U.S. to Europe. Image source: Emirates.
Not surprisingly, U.S. legacy carriers Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and American Airlines (NASDAQ: AAL) all protested this move. Right now, the three carriers -- along with their European joint venture partners -- control a massive share of the U.S.-Europe air travel market. They don't want any extra competition from Emirates.
A long-running feud
For years, Delta, United, and American have lobbied the U.S. government to put limits on the growth of Emirates, as well as its smaller rivals Qatar Airways and Etihad Airways. The U.S. carriers argue that their Middle Eastern rivals are competing unfairly by using state subsidies to fund their growth.
The evidence that Qatar Airways and Etihad Airways rely on government subsidies is fairly strong . Seeing the success of Emirates in creating jobs and driving economic growth in Dubai, the governments of Qatar and Abu Dhabi have spent huge sums of money in an effort to build up their own airlines. By contrast, Emirates is probably a self-sufficient business.
However, Emirates actually irks Delta Air Lines, United Continental, and American Airlines more than its smaller rivals. That's because it has encroached even further onto U.S. airlines' territory by toying with so-called "fifth-freedom" routes that connect the U.S. and Europe directly, rather than routing all flights through its Dubai hub.
In late 2013, Emirates began flying between New York's JFK Airport and Milan, competing directly with American, Delta, and Alitalia -- and indirectly with United, which flies to Milan from Newark. Emirates was allowed to operate this route because the flight continues on from Milan to Dubai.
A big ruse?
Fifth-freedom flights such as Emirates' New York-Milan route are controversial. Typically, an airline is not allowed to carry passengers between two foreign countries without a stop in its home country. However, decades ago, airplanes had much less range than they do today. As a result, airlines had to make stops on longer routes. Fifth-freedom rights made these routes feasible by allowing the airlines to pick up additional passengers at those stops.
Today, plenty of airplanes are capable of flying nonstop from Dubai to New York. The only real reason for the stop in Milan is to carry New York-Milan traffic.
Thus, while this route may not violate the letter of the law, it does seem to violate the spirit of fifth-freedom rights. Each of the other four airlines flying from New York to Milan is based in the U.S. or Italy.
Not surprisingly, Delta Air Lines, United Continental, and American Airlines cried foul -- but their protests have gone nowhere. Consumer advocates welcome the additional competition that Emirates provides, viewing the U.S. carriers as forming a tacit oligopoly. Furthermore, Emirates is Boeing 's biggest customer , providing another reason for the U.S. to not intervene.
Another fifth-freedom route
Emirates will take advantage of fifth-freedom rights again with its new Newark-Athens route. (The plane will continue on from Athens to Dubai.) The route announcement drew a quick condemnation from the Partnership for Open and Fair Skies, a lobbying group formed by Delta, United, and American to fight the Middle Eastern airlines' expansion.
Delta and its peers want the government to block Emirates' new Athens-Newark route. Image source: The Motley Fool.
However, while the U.S. carriers may be justified in their ire regarding Emirates' Milan-JFK route, they are much less sympathetic figures in this dispute. After all, none of them operate year-round service on this route.
In fact, no airline operates year-round from Greece to any U.S. airport. United Airlines flies the Newark-Athens route during the summer season. Delta and American also operate seasonal service to Athens, from New York and Philadelphia, respectively.
Emirates' new route will offer travelers the option of a nonstop flight to get between Athens and New York outside of the summer peak season. In doing so, it will probably steal some customers who would otherwise fly from the U.S. to a European hub on Delta, United, American, or one of their joint venture partners and connect onward from there.
Nevertheless, the benefit in terms of consumer convenience would seem to far outweigh any harm related to cannibalizing U.S. carriers' connecting traffic. The new flights might also stimulate additional economic activity, by making it easier to travel between the U.S. and Greece.
If U.S. carriers can't make year-round nonstop flights to Athens work, they aren't obligated to operate those routes. But they shouldn't try to stop other airlines from giving it a shot.
10 stocks we like better than United Continental Holdings
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and United Continental Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of January 4, 2017
Adam Levine-Weinberg owns shares of Boeing and Delta Air Lines. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Not surprisingly, U.S. legacy carriers Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and American Airlines (NASDAQ: AAL) all protested this move. Earlier this week, Middle Eastern airline giant Emirates announced that it will launch a nonstop route from Newark Airport, just outside New York City, to Athens in March. Seeing the success of Emirates in creating jobs and driving economic growth in Dubai, the governments of Qatar and Abu Dhabi have spent huge sums of money in an effort to build up their own airlines.
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Not surprisingly, U.S. legacy carriers Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and American Airlines (NASDAQ: AAL) all protested this move. However, Emirates actually irks Delta Air Lines, United Continental, and American Airlines more than its smaller rivals. Not surprisingly, Delta Air Lines, United Continental, and American Airlines cried foul -- but their protests have gone nowhere.
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Not surprisingly, U.S. legacy carriers Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and American Airlines (NASDAQ: AAL) all protested this move. Earlier this week, Middle Eastern airline giant Emirates announced that it will launch a nonstop route from Newark Airport, just outside New York City, to Athens in March. However, Emirates actually irks Delta Air Lines, United Continental, and American Airlines more than its smaller rivals.
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Not surprisingly, U.S. legacy carriers Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and American Airlines (NASDAQ: AAL) all protested this move. A long-running feud For years, Delta, United, and American have lobbied the U.S. government to put limits on the growth of Emirates, as well as its smaller rivals Qatar Airways and Etihad Airways. Emirates was allowed to operate this route because the flight continues on from Milan to Dubai.
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0644b47c-984e-459f-a1c8-a1b3dc643351
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7654.0
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2017-01-27 00:00:00 UTC
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American Airlines (AAL) Earnings Soar Past Wall Street Estimates
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-earnings-soar-past-wall-street-estimates-2017-01-27
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nan
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nan
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American Airlines (AAL) released its fourth quarter fiscal 2016 earnings results before the market opened on Friday. Not only did the company beat Wall Street’s estimates on both revenue and profits, American Airlines also did something it hasn’t done in two years: Grow unit revenues, which the company attributed to strong results in Latin America.
What does this all mean? American Airlines has begun to regain the sort of pricing power needed to drive revenues and profits higher in the quarters and years ahead. And with the company forecasting current-quarter unit revenue to rise between 2.5% and 4.5%, American Airlines is seeing no signs of slowing down. That, however, didn’t stop investors from taking profits. AAL shares, which traded at 52-week highs and up 24% in twelve months, declined more than 4% to around $47 on the report.
For new investors, however, who have waited for these shares to get cheaper, this is buying opportunity. Consensus 12-month price target of $55 suggest potential premiums of almost 15%. And if the shares were to reach their high target of $65 the implied gains shoots to almost 40%. And in terms of risk? The stock is priced at just 10 times fiscal 2017 estimates of the $4.69, which is almost half the S&P 500 index. With unit revenues now heading higher, AAL stock is poised to rise too.
Let’s go through the numbers.
In the three months that ended December, the Texas-based airliner giant reported a net income of $475 million, or 92 cents per share. On an adjusted basis, when taking out one-time gains and costs, earnings came to $1.48, which easily flew by Wall Street’s estimates of 92 cents. Fourth quarter revenue $9.79 billion rose almost 2% and topping forecast by about $50 million.
“The American Airlines team continued to produce outstanding results in 2016, and outsiders are taking notice,” CEO Doug Parker said in a statement. Parker later added, ”We had the largest improvement in unit revenue among our competitors and as we look forward, we continue to see strong demand for air service, and improving yields.”
The confident tone was backed up by the fact that total revenue per available seat mile (TRASM) — a closely-watched metric — was 14.90 cents, up 1.3% year over year and the company’s first increase since Q4 of 2014. During the quarter, the company said it returned more than $600 million back to shareholders via a combination of buybacks and dividends. American Airlines also announced a new $2.0 billion share repurchase authorization.
The statements by Parker hinted that American Airlines has a chip on its shoulder and it’s out to prove doubters wrong. And some of the doubters, who are selling their shares today, may soon regret it.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) released its fourth quarter fiscal 2016 earnings results before the market opened on Friday. AAL shares, which traded at 52-week highs and up 24% in twelve months, declined more than 4% to around $47 on the report. With unit revenues now heading higher, AAL stock is poised to rise too.
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American Airlines (AAL) released its fourth quarter fiscal 2016 earnings results before the market opened on Friday. AAL shares, which traded at 52-week highs and up 24% in twelve months, declined more than 4% to around $47 on the report. With unit revenues now heading higher, AAL stock is poised to rise too.
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American Airlines (AAL) released its fourth quarter fiscal 2016 earnings results before the market opened on Friday. AAL shares, which traded at 52-week highs and up 24% in twelve months, declined more than 4% to around $47 on the report. With unit revenues now heading higher, AAL stock is poised to rise too.
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American Airlines (AAL) released its fourth quarter fiscal 2016 earnings results before the market opened on Friday. AAL shares, which traded at 52-week highs and up 24% in twelve months, declined more than 4% to around $47 on the report. With unit revenues now heading higher, AAL stock is poised to rise too.
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0d74e7b3-9d0b-4fe0-94c4-3afa1c549398
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7655.0
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2017-01-27 00:00:00 UTC
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Top Ranked Momentum Stocks to Buy for January 27th
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AAL
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https://www.nasdaq.com/articles/top-ranked-momentum-stocks-to-buy-for-january-27th-2017-01-27
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nan
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nan
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Here are four stocks with buy rank and strong momentum characteristics for investors to consider today, January 27th:
Alcoa Corporation (AA): This global industry leader in bauxite, alumina and aluminum productshas a Zacks Rank #2 (Buy) and witnessedthe Zacks Consensus Estimate for its current year earnings jumping 53.8% over the last 60 days.
Alcoa Corp. Price and Consensus
Alcoa Corp. Price and Consensus | Alcoa Corp. Quote
Alcoa's shares gained 72.9% over the last three months higher than S&P 500's gains of 7.4%. The company possesses a Momentum Score of A.
Alcoa Corp. Price
Alcoa Corp. Price | Alcoa Corp. Quote
J&J Snack Foods Corp. (JJSF): This snack manufacturing company has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.9% over the last 60 days.
J & J Snack Foods Corp. Price and Consensus
J & J Snack Foods Corp. Price and Consensus | J & J Snack Foods Corp. Quote
J&J Snack Foods' shares gained 9.1% over the last three months. The company possesses a Momentum Score of A.
J & J Snack Foods Corp. Price
J & J Snack Foods Corp. Price | J & J Snack Foods Corp. Quote
American Airlines Group Inc. (AAL): This airline company has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings rising 4.4% over the last 60 days.
American Airlines Group, Inc. Price and Consensus
American Airlines Group, Inc. Price and Consensus | American Airlines Group, Inc. Quote
American Airlines Group's shares gained 26.1% over the last three months. The company possesses a Momentum Score of A.
American Airlines Group, Inc. Price
American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote
Sanchez Energy Corporation (SN): This energy company has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings climbing 15% over the last 60 days.
Sanchez Energy Corporation Price and Consensus
Sanchez Energy Corporation Price and Consensus | Sanchez Energy Corporation Quote
Sanchez Energy's shares gained 98.1% over the last three months. The company possesses a Momentum Score of A.
Sanchez Energy Corporation Price
Sanchez Energy Corporation Price | Sanchez Energy Corporation Quote
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sanchez Energy Corporation (SN): Free Stock Analysis Report
J & J Snack Foods Corp. (JJSF): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alcoa Corp. (AA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company possesses a Momentum Score of A. J & J Snack Foods Corp. Price J & J Snack Foods Corp. Price | J & J Snack Foods Corp. Quote American Airlines Group Inc. (AAL): This airline company has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings rising 4.4% over the last 60 days. Click to get this free report Sanchez Energy Corporation (SN): Free Stock Analysis Report J & J Snack Foods Corp. (JJSF): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alcoa Corp. (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Here are four stocks with buy rank and strong momentum characteristics for investors to consider today, January 27th: Alcoa Corporation (AA): This global industry leader in bauxite, alumina and aluminum productshas a Zacks Rank #2 (Buy) and witnessedthe Zacks Consensus Estimate for its current year earnings jumping 53.8% over the last 60 days.
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The company possesses a Momentum Score of A. J & J Snack Foods Corp. Price J & J Snack Foods Corp. Price | J & J Snack Foods Corp. Quote American Airlines Group Inc. (AAL): This airline company has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings rising 4.4% over the last 60 days. Click to get this free report Sanchez Energy Corporation (SN): Free Stock Analysis Report J & J Snack Foods Corp. (JJSF): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alcoa Corp. (AA): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Momentum Score of A. American Airlines Group, Inc. Price American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote Sanchez Energy Corporation (SN): This energy company has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings climbing 15% over the last 60 days.
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The company possesses a Momentum Score of A. J & J Snack Foods Corp. Price J & J Snack Foods Corp. Price | J & J Snack Foods Corp. Quote American Airlines Group Inc. (AAL): This airline company has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings rising 4.4% over the last 60 days. Click to get this free report Sanchez Energy Corporation (SN): Free Stock Analysis Report J & J Snack Foods Corp. (JJSF): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alcoa Corp. (AA): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Momentum Score of A. Alcoa Corp. Price Alcoa Corp. Price | Alcoa Corp. Quote J&J Snack Foods Corp. (JJSF): This snack manufacturing company has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.9% over the last 60 days.
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The company possesses a Momentum Score of A. J & J Snack Foods Corp. Price J & J Snack Foods Corp. Price | J & J Snack Foods Corp. Quote American Airlines Group Inc. (AAL): This airline company has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings rising 4.4% over the last 60 days. Click to get this free report Sanchez Energy Corporation (SN): Free Stock Analysis Report J & J Snack Foods Corp. (JJSF): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alcoa Corp. (AA): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Momentum Score of A. American Airlines Group, Inc. Price American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote Sanchez Energy Corporation (SN): This energy company has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings climbing 15% over the last 60 days.
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7656.0
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2017-01-27 00:00:00 UTC
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Stock Market News for January 27, 2017
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AAL
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https://www.nasdaq.com/articles/stock-market-news-for-january-27-2017-2017-01-27
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Benchmarks closed mixed on Thursday despite continued optimism over Trump's growth-focused actions and new set of earnings results. Strong gains in financials, industrials and materials led the Dow to reach at all-time record high level for the second consecutive session. Declines in healthcare sector weighed on the S&P 500 and Nasdaq.
For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article.
The Dow Jones Industrial Average (DJI) increased 0.2%, to close at 20,100.91. However, the S&P 500 fell 0.1% to close at 2,296.68. The tech-laden Nasdaq Composite Index closed at 5,655.18, losing 1.16 points. The fear-gauge CBOE Volatility Index (VIX) declined 1.7% to settle at 10.63. A total of around 6.70 billion shares were traded Thursday, higher than the last 20-session average of 6.51 billion. Decliners outpaced advancing stocks on the NYSE. For 50% stocks that declined, 46% advanced.
Dow Stays Above 20,000 Level
After his recent moves to revive two major oil pipeline projects, Trump signed executive orders to improve border security and control immigration. This in turn raised speculation that Trump will proceed with tax cuts, financial deregulation and introduce expansionary infrastructure spending.
Strong optimism over Trump's economic policies led the Financial Select Sector SPDR (XLF) to rise 0.3%, which was the second best performing sector among the S&P 500. Some of its key holdings, including JPMorgan Chase & Co. ( JPM ) and Goldman Sachs Group, Inc. ( GS ) advanced 0.8% and 1%, respectively.
Further, Southwest Airlines Co's ( LUV ) shares jumped 9% reported impressive results for the fourth quarter of 2016. The company beat earnings estimates and delivered better-than-expected revenues. ( Read More )
Gains in Southwest Airlines led the Industrial Select Sector SPDR (XLI) to increase 0.2%, which became third biggest gainer among the S&P 500 sectors. Some of its components including American Airlines Group Inc. ( AAL ) and Delta Air Lines, Inc. ( DAL ) advanced 3.5% and 1.4%, respectively.
Moreover, shares of Dow Chemical Company ( DOW ) advanced 2% after the company logged forecast-topping earnings in fourth-quarter, helped by its cost-cutting and productivity actions and continued focus on consumer-driven markets. ( Read More )
Rise in Dow Chemical led the Materials Select Sector SPDR (XLB) to advance 0.3% and was the best performer among the S&P 500 sectors. Key holdings from the sector including, E. I. du Pont de Nemours and Company ( DD ) and PPG Industries, Inc. ( PPG ) rose 1.7% and 0.6%, respectively.
S&P 500 And Nasdaq Close In Red
Meanwhile, Bristol-Myers Squibb Company's ( BMY ) shares fell 5.5% after the company missed its earnings guidance for 2017. The company reported a mixed fourth quarter, with earnings missing expectations while sales beating the same. ( Read More )
Also, shares of Johnson & Johnson ( JNJ ) declined 0.9% after the company decided to acquire Swiss biotechnology company Actelion for $30 billion in order to boost its roster of rare disease treatments. ( Read More )
Losses in Bristol-Myers Squibb and Johnson & Johnson led the Health Care Select Sector SPDR (XLV) to fall 0.8%, which was the worst performing sector in the S&P 500. Some of its key components including Amgen Inc. ( AMGN ) and Celgene Corporation ( CELG ) decreased 0.7% and 2.2%, respectively.
Stocks That Made Headlines
Alphabet Misses on Q4 Earnings, Beats Revenues
Alphabet ( GOOGL ) fourth-quarter earnings missed the Zacks Consensus Estimate due to higher taxes, but were up 7.1% year over year. ( Read More )
Starbucks Q1 Earnings in Line, Stock Hit by View Cut
Starbucks Corporation ( SBUX ) reported fiscal first quarter earnings that managed to meet the consensus mark, but revenues missed the same. ( Read More )
JetBlue Airways Declines Despite Q4 Earnings Beat
JetBlue Airways Corporation's ( JBLU ) fourth-quarter 2016 adjusted earnings per share beat the Zacks Consensus Estimate by a penny. ( Read More )
Wynn Resorts Stock Up Despite Earnings Miss in Q4
Shares of Wynn Resorts Ltd. ( WYNN ) increased after the company reported mixed fourth-quarter 2016 results. ( Read More )
Colgate Q4 Earnings In Line, Revenues Lag; Stock Down
Colgate-Palmolive Co. ( CL ) posted in-line earnings in fourth-quarter 2016, maintaining its trend of beating and meeting estimates in alternate quarters for the sixth straight time. ( Read More )
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
J P Morgan Chase & Co (JPM): Free Stock Analysis Report
Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
Celgene Corporation (CELG): Free Stock Analysis Report
Southwest Airlines Company (LUV): Free Stock Analysis Report
Dow Chemical Company (The) (DOW): Free Stock Analysis Report
Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Starbucks Corporation (SBUX): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some of its components including American Airlines Group Inc. ( AAL ) and Delta Air Lines, Inc. ( DAL ) advanced 3.5% and 1.4%, respectively. Click to get this free report J P Morgan Chase & Co (JPM): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Dow Chemical Company (The) (DOW): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Starbucks Corporation (SBUX): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Strong gains in financials, industrials and materials led the Dow to reach at all-time record high level for the second consecutive session.
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Click to get this free report J P Morgan Chase & Co (JPM): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Dow Chemical Company (The) (DOW): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Starbucks Corporation (SBUX): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Some of its components including American Airlines Group Inc. ( AAL ) and Delta Air Lines, Inc. ( DAL ) advanced 3.5% and 1.4%, respectively. Stocks That Made Headlines Alphabet Misses on Q4 Earnings, Beats Revenues Alphabet ( GOOGL ) fourth-quarter earnings missed the Zacks Consensus Estimate due to higher taxes, but were up 7.1% year over year.
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Click to get this free report J P Morgan Chase & Co (JPM): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Dow Chemical Company (The) (DOW): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Starbucks Corporation (SBUX): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Some of its components including American Airlines Group Inc. ( AAL ) and Delta Air Lines, Inc. ( DAL ) advanced 3.5% and 1.4%, respectively. ( Read More ) Starbucks Q1 Earnings in Line, Stock Hit by View Cut Starbucks Corporation ( SBUX ) reported fiscal first quarter earnings that managed to meet the consensus mark, but revenues missed the same.
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Some of its components including American Airlines Group Inc. ( AAL ) and Delta Air Lines, Inc. ( DAL ) advanced 3.5% and 1.4%, respectively. Click to get this free report J P Morgan Chase & Co (JPM): Free Stock Analysis Report Goldman Sachs Group, Inc. (The) (GS): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Dow Chemical Company (The) (DOW): Free Stock Analysis Report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Starbucks Corporation (SBUX): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. For 50% stocks that declined, 46% advanced.
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973fedaa-0e53-48b1-9054-12abab507924
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7657.0
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2017-01-27 00:00:00 UTC
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Unit Revenues Expected To Turnaround In Q4'16 For American Airlines, Costs To Weigh Down Earnings
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AAL
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https://www.nasdaq.com/articles/unit-revenues-expected-turnaround-q416-american-airlines-costs-weigh-down-earnings-2017-01
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American Airlines ( AAL ) is slated to release its quarterly and full year earnings on the 27th of January, 2017. Although the carrier's revenues fell slightly and earnings deteriorated in the third quarter results, American's stock price was seen trending upwards afterwards. This is likely attributable to the company beating the consensus and showcasing better than expected performance in unit revenues. In the upcoming quarterly results, we expect the company to grow its revenues at a moderate pace due to disciplined capacity growth and a jump in yields. However, the bottom line may continue to suffer due to higher unit costs. In the following article we discuss some of the trends which are expected to be seen in the upcoming quarterly results.
Key Trends:
American Airlines has consistently improved its unit revenues in the year 2016. Starting with a decline of -7.5% in Q1'16, the company improved its performance to -3.3% in Q3'16. This arrest in the fall in unit revenues can be understood by the company's decision to cut capacity. The carrier may become the first in the year 2016 to show a turnaround in its PRASM numbers. It has revised its guidance for the final quarter of the year from a decline of (1%)-1% to a likely increase in the range of 0%-2%. This is attributable to the capacity discipline the company has been practicing on international routes and the improvement being seen in yields, especially Latin America.
The company's full year system-wide capacity should come in the range of its guidance of approximately 2%. To this end, American decided to keep its capacity growth almost flat in the quarter. However, the continuous decline in its occupancy factor indicates that the carrier is still unable to fully utilize its existing capacity. Consequently, the moderation in capacity will support the airline's bottom line, partially offsetting the negative impact of higher fuel cost and operating expenses excluding fuel. Going forward, the company emphasized that it will continue to maintain capacity discipline in FY 2017, such that the growth is limited to a percentage point. This is likely an effort to control the negative headwinds its unit revenues are suffering from, especially in the Pacific and Atlantic, and manage the excess capacity that has been built into the system.
We have recently seen some recovery in oil prices , owing to the OPEC countries' decision to restrict their combined oil output to 1.2 million barrels of oil per day (Mbpd) over the coming months. In addition to this, the Non-OPEC members, such as Russia, also supported the OPEC's move by offering to bring down their production by roughly 600,000 barrels of oil per day. In response to the news, crude oil prices shot up by around 10% over the last one month of the year, reinforcing to investors that the commodity markets are on the path of recovery. The increase is likely to impact the airline's fuel expenditure, but not by much, as the prices continue to be much lower than the historical $100 per barrel.
The company is concentrating on cutting its non-fuel expenditure by promoting operational expertise, to offset higher fuel costs. However, after being capped in the first two quarters, American's unit costs began increasing in the third quarter. The increase in unit costs is mainly attributable to higher salaries and maintenance expenses incurred in the quarter. The trend is expected to worsen in the fourth quarter. Unit costs, excluding fuel, are expected to grow at 8% - 10% y-o-y in the fourth quarter. Consequently, we can expect the operating margins to decline significantly.
Accordingly, American's management expects its pre-tax margin for the fourth quarter to be in the high single digits, that is, 7%-9%. Given that American doesn't hedge its fuel consumption, the coming year may be a tough one for the company.
Have more questions about American Airlines ( AAL )? See the following links:
How Did American Airlines Perform Operationally In December?
What Does The Future Look Like At American Airlines?
What Could Be The Potential Impact Of Multi-Fold Increase In Passenger Demand On Airlines?
How Did American Airlines Perform Operationally In October?
American Airlines Q3'16 Earnings Review: Unit Revenues Improve, But Costs Increase
American Airlines Q3'16 Earnings Preview: Reduction In Capacity To Partially Offset Lower Unit Revenues
Why Are Airline Manufacturers Witnessing A Slowdown In Commercial Orders?
Air Traffic Under Closed Economic Policies Due To Hostile Situations: Downside Scenario
Air Traffic Under Liberal Economic Policies: Upside Scenario
How Will American Airlines Benefit From Its New Fleet Plan?
What Are The Factors Behind Soaring Air Travel Growth?
How Important Will American's International Operations Be In 2020?
How Will American Airlines' Equity Value Move, If Crude Oil Prices Rebound To $100 Per Barrel By 2018?
Why Are American Airlines' Domestic Operations More Valuable Than Its International Operations?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for American Airlines
View Interactive Institutional Research (Powered by Trefis):
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines ( AAL ) is slated to release its quarterly and full year earnings on the 27th of January, 2017. Have more questions about American Airlines ( AAL )? In the upcoming quarterly results, we expect the company to grow its revenues at a moderate pace due to disciplined capacity growth and a jump in yields.
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American Airlines ( AAL ) is slated to release its quarterly and full year earnings on the 27th of January, 2017. Have more questions about American Airlines ( AAL )? Consequently, the moderation in capacity will support the airline's bottom line, partially offsetting the negative impact of higher fuel cost and operating expenses excluding fuel.
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American Airlines ( AAL ) is slated to release its quarterly and full year earnings on the 27th of January, 2017. Have more questions about American Airlines ( AAL )? Key Trends: American Airlines has consistently improved its unit revenues in the year 2016.
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American Airlines ( AAL ) is slated to release its quarterly and full year earnings on the 27th of January, 2017. Have more questions about American Airlines ( AAL )? In the upcoming quarterly results, we expect the company to grow its revenues at a moderate pace due to disciplined capacity growth and a jump in yields.
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2017-01-27 00:00:00 UTC
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Futures Trim Gains as Economic Growth Slows
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AAL
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https://www.nasdaq.com/articles/futures-trim-gains-economic-growth-slows-2017-01-27
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Dow and S&P 500 futures are straddling the flatline after having returned their very modest gains into Friday's open after data that showed economic growth slowed to an annual rate of just 1.9% rattling Wall Street investors. Nasdaq futures remain higher with a comfortable gain of 0.18%.
Additionally, durable goods orders fell 0.4% last month, well below expectations for an increase of 2.6%. Excluding a 2.2% decline in transportation-related orders, durable goods orders increased an as-expected 0.5%, while November was revised higher to +1.0% from +0.5% previously.
Leading into this morning's data, futures were marginally higher as the markets continued to digest a flurry of fourth quarter results. Starbucks ( SBUX ) and Alphabet (GOOG, GOOGL) reported mixed results, Microsoft's ( MSFT ) results came in well above expectations, while American Airlines ( AAL ) crushed earnings estimates, driving the entire airline sector higher in premarket trading .
In related markets, oil futures are defensive as rising U.S. production continues to weigh on the energy market. The Baker Hughes oil rig count later this afternoon will likely show that U.S. oil and natural gas rigs increased as producers capitalize on the recent gain in oil prices . Both Brent crude and West Texas intermediate futures are nearly 1% lower.
The dollar continues to strengthen against the yen, shrugging off the disappointing durable goods and GDP data to reach a five-day high. As a result, gold is lower for a fourth consecutive day.
Up next is the University of Michigan consumer sentiment index for January, expected to inch up to 98.2 from 98.1 previously.
-Dow Jones Industrial down 0.03%
-S&P 500 futures 0.00%
-Nasdaq 100 futures up 0.18%
SENTIMENT
Nikkei up 0.34%
Hang Seng down 0.06%
Shanghai Composite Closed
FTSE-100 down 0.01%
DAX-30 down 0.18%
PRE-MARKET SECTOR WATCH
(+/-) Large cap tech: Mixed
(+/-) Chip stocks: Higher
(+/-) Software stocks: Higher
(+/-) Hardware stocks: Mixed
(+/-) Internet stocks: Lower
(+/-) Oil stocks: Mixed
(+/-) Biotech stocks: Flat
(+/-) Drug stocks: Mixed
(+/-) Financial stocks: Flat
(+/-) Retail stocks: Flat
(+/-) Industrial stocks: Flat
(+/-) Airlines: Higher
(+/-) Autos: Higher
UPSIDE MOVERS:
(+) SMCI (+9.63%) Fiscal Q3 results beat expectations, guides Q3 above street forecasts
(+) WYNN (+6.74%) Q4 revenue jumps 37% from year ago, beats Wall Street estimates
(+) SYNA (+6.04%) iscal Q2 profit and revenue exceeded expectations
DOWNSIDE MOVERS:
(-) WKHS (-13.54%) Announced underwritten public stock offering
(-) JNPR (-6.93%) Beat revenue and profit expectations but guides Q1 EPS below street estimates
(-) SBUX (-3.73%) Reported in-line earnings on below-consensus revenue
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Starbucks ( SBUX ) and Alphabet (GOOG, GOOGL) reported mixed results, Microsoft's ( MSFT ) results came in well above expectations, while American Airlines ( AAL ) crushed earnings estimates, driving the entire airline sector higher in premarket trading . Dow and S&P 500 futures are straddling the flatline after having returned their very modest gains into Friday's open after data that showed economic growth slowed to an annual rate of just 1.9% rattling Wall Street investors. Leading into this morning's data, futures were marginally higher as the markets continued to digest a flurry of fourth quarter results.
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Starbucks ( SBUX ) and Alphabet (GOOG, GOOGL) reported mixed results, Microsoft's ( MSFT ) results came in well above expectations, while American Airlines ( AAL ) crushed earnings estimates, driving the entire airline sector higher in premarket trading . Excluding a 2.2% decline in transportation-related orders, durable goods orders increased an as-expected 0.5%, while November was revised higher to +1.0% from +0.5% previously. (+/-) Large cap tech: Mixed (+/-) Chip stocks: Higher (+/-) Software stocks: Higher (+/-) Hardware stocks: Mixed (+/-) Internet stocks: Lower (+/-) Oil stocks: Mixed (+/-) Biotech stocks: Flat (+/-) Drug stocks: Mixed (+/-) Financial stocks: Flat (+/-) Retail stocks: Flat (+/-) Industrial stocks: Flat (+/-) Airlines: Higher (+/-) Autos: Higher
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Starbucks ( SBUX ) and Alphabet (GOOG, GOOGL) reported mixed results, Microsoft's ( MSFT ) results came in well above expectations, while American Airlines ( AAL ) crushed earnings estimates, driving the entire airline sector higher in premarket trading . (+/-) Large cap tech: Mixed (+/-) Chip stocks: Higher (+/-) Software stocks: Higher (+/-) Hardware stocks: Mixed (+/-) Internet stocks: Lower (+/-) Oil stocks: Mixed (+/-) Biotech stocks: Flat (+/-) Drug stocks: Mixed (+/-) Financial stocks: Flat (+/-) Retail stocks: Flat (+/-) Industrial stocks: Flat (+/-) Airlines: Higher (+/-) Autos: Higher (+) SMCI (+9.63%) Fiscal Q3 results beat expectations, guides Q3 above street forecasts (+) WYNN (+6.74%) Q4 revenue jumps 37% from year ago, beats Wall Street estimates (+) SYNA (+6.04%) iscal Q2 profit and revenue exceeded expectations
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Starbucks ( SBUX ) and Alphabet (GOOG, GOOGL) reported mixed results, Microsoft's ( MSFT ) results came in well above expectations, while American Airlines ( AAL ) crushed earnings estimates, driving the entire airline sector higher in premarket trading . Additionally, durable goods orders fell 0.4% last month, well below expectations for an increase of 2.6%. -Dow Jones Industrial down 0.03% -S&P 500 futures 0.00% -Nasdaq 100 futures up 0.18%
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7659.0
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2017-01-27 00:00:00 UTC
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Pre-Market Most Active for Jan 27, 2017 : MSFT, NVS, AZN, PCG, AUPH, HZN, PHG, CL, SBUX, AAL, INTC, FB
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-jan-27-2017-msft-nvs-azn-pcg-auph-hzn-phg-cl-sbux-aal-intc-fb-2017
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The NASDAQ 100 Pre-Market Indicator is up .9 to 5,157.82. The total Pre-Market volume is currently 4,701,761 shares traded.
The following are the most active stocks for the pre-market session :
Microsoft Corporation ( MSFT ) is +0.91 at $65.18, with 497,598 shares traded., following a 52-week high recorded in prior regular session.
Novartis AG ( NVS ) is -0.23 at $71.68, with 360,716 shares traded. As reported by Zacks, the current mean recommendation for NVS is in the "buy range".
Astrazeneca PLC ( AZN ) is +0.16 at $26.88, with 344,994 shares traded.AZN is scheduled to provide an earnings report on 2/2/2017, for the fiscal quarter ending Dec2016. The consensus earnings per share forecast is 0.49 per share, which represents a 95 percent increase over the EPS one Year Ago
Pacific Gas & Electric Co. ( PCG ) is unchanged at $60.76, with 328,819 shares traded. As reported by Zacks, the current mean recommendation for PCG is in the "buy range".
Aurinia Pharmaceuticals Inc ( AUPH ) is +0.45 at $3.50, with 267,636 shares traded. As reported by Zacks, the current mean recommendation for AUPH is in the "buy range".
Horizon Global Corporation ( HZN ) is +0.19 at $18.95, with 216,250 shares traded. As reported by Zacks, the current mean recommendation for HZN is in the "strong buy range".
Koninklijke Philips N.V. ( PHG ) is -0.3 at $29.48, with 194,038 shares traded. PHG's current last sale is 82.42% of the target price of $35.77.
Colgate-Palmolive Company ( CL ) is -3.92 at $64.32, with 172,527 shares traded. Market Realist Reports: Will Clorox's Earnings Improve in Fiscal 2Q17?
Starbucks Corporation ( SBUX ) is -2.28 at $56.18, with 130,802 shares traded. As reported by Zacks, the current mean recommendation for SBUX is in the "buy range".
American Airlines Group, Inc. ( AAL ) is +1.09 at $50.68, with 113,315 shares traded. Over the last four weeks they have had 9 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2016. The consensus EPS forecast is $0.92. Reuters Reports: American Airlines profit plunges
Intel Corporation ( INTC ) is +0.21 at $37.77, with 111,363 shares traded. As reported by Zacks, the current mean recommendation for INTC is in the "buy range".
Facebook, Inc. ( FB ) is -0.4 at $132.38, with 101,091 shares traded.FB is scheduled to provide an earnings report on 2/1/2017, for the fiscal quarter ending Dec2016. The consensus earnings per share forecast is 1.13 per share, which represents a 59 percent increase over the EPS one Year Ago
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) is +1.09 at $50.68, with 113,315 shares traded. Astrazeneca PLC ( AZN ) is +0.16 at $26.88, with 344,994 shares traded.AZN is scheduled to provide an earnings report on 2/2/2017, for the fiscal quarter ending Dec2016. Reuters Reports: American Airlines profit plunges Intel Corporation ( INTC ) is +0.21 at $37.77, with 111,363 shares traded.
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American Airlines Group, Inc. ( AAL ) is +1.09 at $50.68, with 113,315 shares traded. Astrazeneca PLC ( AZN ) is +0.16 at $26.88, with 344,994 shares traded.AZN is scheduled to provide an earnings report on 2/2/2017, for the fiscal quarter ending Dec2016. The consensus earnings per share forecast is 0.49 per share, which represents a 95 percent increase over the EPS one Year Ago Pacific Gas & Electric Co. ( PCG ) is unchanged at $60.76, with 328,819 shares traded.
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American Airlines Group, Inc. ( AAL ) is +1.09 at $50.68, with 113,315 shares traded. The consensus earnings per share forecast is 0.49 per share, which represents a 95 percent increase over the EPS one Year Ago Pacific Gas & Electric Co. ( PCG ) is unchanged at $60.76, with 328,819 shares traded. Reuters Reports: American Airlines profit plunges Intel Corporation ( INTC ) is +0.21 at $37.77, with 111,363 shares traded.
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American Airlines Group, Inc. ( AAL ) is +1.09 at $50.68, with 113,315 shares traded. The NASDAQ 100 Pre-Market Indicator is up .9 to 5,157.82. As reported by Zacks, the current mean recommendation for NVS is in the "buy range".
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6a596e81-fe9b-4a1a-a994-8d112df16eb7
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7660.0
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2017-01-27 00:00:00 UTC
|
Market Close Report: Historical high reached as NASDAQ Composite Index closes at 5,660.78.
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AAL
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https://www.nasdaq.com/articles/market-close-report-historical-high-reached-nasdaq-composite-index-closes-566078-2017-01
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nan
|
nan
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Friday's session closes with the NASDAQ Composite Index reaching a historical high. The index closed at 5,660.78 up 5.6 for the day. The index first reached the 5000 mark on 01/25/2017 The total shares traded for the NASDAQ was over 1.91 billion. Declining stocks led advancers by 1.13 to 1 ratio. There were 1348 advancers and 1529 decliners for the day. On the NASDAQ Stock Exchange 71 stocks reached a 52 week high and 13 reaching lows. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed up .22% for the day; a total of 11.14 points. The current value is 5,168.06. American Airlines Group, Inc. ( AAL ) had the largest percent change down (-5.32%) while Maxim Integrated Products, Inc. ( MXIM ) had the largest percent change gain rising 6.53%.
The Dow Jones index closed down -.04% for the day; a total of -7.13 points. The current value is 20,093.78. Chevron Corporation ( CVX ) had the largest percent change down (-2.37%) while Microsoft Corporation ( MSFT ) had the largest percent change gain rising 2.35%.
NASDAQ Market Wrap
As of 1/27/2017 4:44:01 PM
NASDAQ COMPOSITE INDEX 5,660.78 milestone closes at 71 STOCKS REACHED A 52 WEEK HIGH 13 THOSE REACHING LOWS TOTALEDMaxim Integrated Products, Inc. [MXIM]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 6.53 ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group, Inc. ( AAL ) had the largest percent change down (-5.32%) while Maxim Integrated Products, Inc. ( MXIM ) had the largest percent change gain rising 6.53%. Friday's session closes with the NASDAQ Composite Index reaching a historical high. The index first reached the 5000 mark on 01/25/2017 The total shares traded for the NASDAQ was over 1.91 billion.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-5.32%) while Maxim Integrated Products, Inc. ( MXIM ) had the largest percent change gain rising 6.53%. On the NASDAQ Stock Exchange 71 stocks reached a 52 week high and 13 reaching lows. NASDAQ Market Wrap As of 1/27/2017 4:44:01 PM NASDAQ COMPOSITE INDEX 5,660.78 milestone closes at 71 STOCKS REACHED A 52 WEEK HIGH 13 THOSE REACHING LOWS TOTALEDMaxim Integrated Products, Inc. [MXIM]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 6.53 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-5.32%) while Maxim Integrated Products, Inc. ( MXIM ) had the largest percent change gain rising 6.53%. On the NASDAQ Stock Exchange 71 stocks reached a 52 week high and 13 reaching lows. The NASDAQ 100 index closed up .22% for the day; a total of 11.14 points.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-5.32%) while Maxim Integrated Products, Inc. ( MXIM ) had the largest percent change gain rising 6.53%. There were 1348 advancers and 1529 decliners for the day. The NASDAQ 100 index closed up .22% for the day; a total of 11.14 points.
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ed1e27d8-ee57-4a35-93a2-2f9ba81c1aab
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7661.0
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2017-01-27 00:00:00 UTC
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Can Copa, Avianca And Latam Pick Up The Airline Rally In 2017?
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AAL
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https://www.nasdaq.com/articles/can-copa-avianca-and-latam-pick-airline-rally-2017-2017-01-27-0
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nan
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nan
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After a weak start, U.S.-based airlines rebounded through the second half of 2016. But the fourth quarter reporting season finds the industry under rising scrutiny, as analysts grow increasingly concerned about valuation and margin pressure amid rising labor and fuel costs.
"Investors continue to focus on unit revenue, but costs are outpacing any improvement in revenue," said Helane Becker, a Cowen analyst in a report. "It's critical for the companies to discuss their plans to expand margins, with a clear timeline on when margins improve."
Southwest Airlines ( LUV ) on Thursday reported a 17% earnings decline in Q4, its first slip in 17 quarters. The number topped analyst targets. The company noted pressure from rising fuel and labor costs, but shares still surged more than 8% in heavy trade.
JetBlue ( JBLU ) reversed its early gains and dropped 2% on Thursday. Its earnings declined 11% - the first drop in 11 quarters - yet still also topped views. But the key metric of passenger revenue per available seat mile slipped nearly 2% for the quarter vs. a 6.5% increase in operating expenses.
But while the U.S. economic cycle is getting long in the tooth, Latin America was a bright spot for U.S. airlines, especially American Airlines Group ( AAL ), which has the most exposure there.
Latin American airlines flashed signs of recovery in 2016, boosted in part by stronger currencies.
Fundamentals for regional players, such as Panama-based Copa Holding s ( CPA ), have improved as the industry aggressively reduced capacity. Copa turned in its first earnings and revenue gain in nine quarters in Q3. Analysts expect a 40% earnings increase when it reports Q4 results after the close on Feb. 15.
Delta Air Lines ( DAL ), American, United Continental Holdings (UAL) and JetBlue have forecast improving unit revenue, another key industry metric related to airlines' available seats and how far they fly. The U.S. industry could turn positive in 2017, analysts say.
But Latin America's airline industry posted positive unit revenue last year, says a Cowen & Co. report.
There, analysts are eyeing capacity discipline among carriers amid hopes a wider recovery will take hold. Analysts are also paying close attention to Avianca Holdings (AVH), the region's second-biggest carrier behind Chile-based Latam Airlines (LFL).
Analyst expect a 119% earnings gain from Avianca in its fourth quarter, while revenue declines are forecast to slow to less than 1%. The company has not yet announced a fourth quarter reporting date.
Colombia-based Avianca is reported to be mulling selling a stake to Delta or United. Another possible scenario - a merger with Panama's Copa - could shake up the industry, analysts say.
As it stands, the outlook for Latin America's airlines has improved, says Felipe Vinagre, analyst at Credit Suisse.
"If you combine improving currencies, fleet restructuring and cost cutting, a rational stance on capacity, and a better demand environment then I think better times will be possible," Vinagre said in an interview.
IBD'S TAKE:American Airlines, United Continental and Delta Air all traded just below buy points on Thursday.
He says Brazil is key to the industry's recovery and a turnaround in demand, as business travel picks up and its consumers have more income to take vacations.
A crippling recession hit Brazil in 2015, but Brazil's currency, the real, bounced back in 2016. The country unexpectedly slashed its benchmark interest rate in January, aiming to jump-start its moribund economy. While inflation has slowed, high debt levels and weak consumer confidence persist.
Those conditions coerced three out of the four major domestic airlines in Brazil to reduced capacity last year. Avianca Brazil was the exception, says Vinagre. Brothers German and Jose Efromovich, who control Colombia's Avianca, also own Avianca Brazil, a separate airline.
Avianca Eyes The Big Leagues
Some analysts say Brazil's airline industry needs more consolidation to boost industry profits. Delta has a 10% stake in Gol Linhas Aereas (GOL) while United has a 5% stake in privately held Azul. Brazil currently limits foreign ownership to a 20% company stake.
If either Delta or United can grab a stake in Colombia's Avianca, it could lead to a partnership with Avianca Brazil, giving them a bigger footprint to compete vs. American in the region, says Vinagre. But he says the "best solution" would be for Gol to buy Avianca Brazil.
U.S. regulators in November approved Delta's plans to raise its stake in Grupo Aeromexico, Mexico's largest airline, to as much as 49% as part of an expanded partnership.
A merger between Copa Holdings and Colombia's Avianca, on the other hand, would move the Panama-based carrier into the big leagues, analysts say. The combined company would dominate the two main hubs in the region, Tocumen, Panama and Bogota, Colombia.
Avianca and Copa serve 33 common destinations out of the two hubs, and the destination overlap makes a merger attractive, says Savanthi Syth, an analyst at Raymond James, said in an interview.
IBD'S TAKE:Airlines have eased to a No. 21 ranking on Thursday among the 197 industry groups tracked by IBD .
"There's a lot of opportunity for Copa in the merger," added Syth. "But, it would be a sizable acquisition and not without risk."
Copa managed to weather the region's economic downturn with good margins and a strong balance sheet, Syth says. It also benefited from Panama being a U.S. dollar based economy. As a result, Copa had fewer headwinds than other regional carriers, whose revenue is in local currencies while expenses, such as fuel, are U.S. dollar-based.
Copa simplified its fleet to lower costs, flying mostly Boeing 737s, rather than a mix of aircraft like other carriers, Syth added. Avianca, though, flies Airbuses.
Maintaining Capacity Discipline
In December, Copa renamed its Colombian subsidiary Wingo and launched its as a low-cost carrier focused on point-to-point destinations. With Mexico-based, budget-carrier Volaris expanding operations to Costa Rica and other parts of Central America and Viva Air debuting in Peru, analysts say Copa is exploring the low-cost business model as a long-term strategy.
Despite periodic currency meltdowns, Latin America remains an attractive market, contends Syth. The region's air travel remains under average compared to Asia, Europe and the U.S. That means, as the middle class grows, there is potential for seat demand to climb.
For Latin American airlines, the big issue is whether they can remain disciplined. A jump in industry capacity could snuff out a stock rally amid the region's fragile recovery, analysts say.
"Most airlines are taking a cautious approach," said Syth.
Analysts say Latam Airlines has been reducing capacity. In 2016, Qatar invested over $600 million in Latam for a 10% stake, easing its liquidity concerns. Since then, Latam has been relocating capacity to international markets, establishing routes to Spain and Italy, says Vinagre.
While U.S. value airlines have increased short-haul flights to Mexico and the Caribbean, targeting leisure travelers, the big U.S. carriers have shown restraint. American, United and Delta will hike capacity in Latin America in the low single digits in 2017, says a Cowen report, though Southwest will again add capacity at a double-digit clip, albeit in limited destinations.
Wall Street has called for airlines to focus on profit rather than on expanding inefficient capacity and money-losing routes. It wasn't long ago when industry overcapacity led to record low fares. Those fares spurred huge losses, ignited battles with unions over givebacks and sent many airlines into bankruptcy.
Warren Buffett's Berkshire Hathaway (BRKN) in November disclosed new stakes American, Delta, Southwest and United. That's a sharp contrast to 2013, when Buffett called airline stocks a "death trap."
Consolidation has left the top four carriers with 86% of industry revenue, says Barclays, which initiated coverage of the sector in December. "Margins have more than doubled" and relative debt levels are down among the largest airlines, said Barclays analyst Brandon Oglenski in a report.
Citigroup analyst Kevin Crissey initiated coverage of airline stocks in November. The last successful new entrant, he noted, was Virgin America in 2007.
"The U.S. airline industry has been hosting a renaissance party for investors," Crissey said in a report. "All of the stocks have tripled or better in the past five years. Although we are staying at the party from a ratings perspective, we've moved away from the punch bowl."
RELATED:
Can Delta, United, American Declare Mission Accomplished In 2017?
American Lifts Unit Revenue View; DOJ Backs Off Collusion Case
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
But while the U.S. economic cycle is getting long in the tooth, Latin America was a bright spot for U.S. airlines, especially American Airlines Group ( AAL ), which has the most exposure there. "If you combine improving currencies, fleet restructuring and cost cutting, a rational stance on capacity, and a better demand environment then I think better times will be possible," Vinagre said in an interview. With Mexico-based, budget-carrier Volaris expanding operations to Costa Rica and other parts of Central America and Viva Air debuting in Peru, analysts say Copa is exploring the low-cost business model as a long-term strategy.
|
But while the U.S. economic cycle is getting long in the tooth, Latin America was a bright spot for U.S. airlines, especially American Airlines Group ( AAL ), which has the most exposure there. But the fourth quarter reporting season finds the industry under rising scrutiny, as analysts grow increasingly concerned about valuation and margin pressure amid rising labor and fuel costs. Delta Air Lines ( DAL ), American, United Continental Holdings (UAL) and JetBlue have forecast improving unit revenue, another key industry metric related to airlines' available seats and how far they fly.
|
But while the U.S. economic cycle is getting long in the tooth, Latin America was a bright spot for U.S. airlines, especially American Airlines Group ( AAL ), which has the most exposure there. Delta Air Lines ( DAL ), American, United Continental Holdings (UAL) and JetBlue have forecast improving unit revenue, another key industry metric related to airlines' available seats and how far they fly. But Latin America's airline industry posted positive unit revenue last year, says a Cowen & Co. report.
|
But while the U.S. economic cycle is getting long in the tooth, Latin America was a bright spot for U.S. airlines, especially American Airlines Group ( AAL ), which has the most exposure there. But Latin America's airline industry posted positive unit revenue last year, says a Cowen & Co. report. Avianca Eyes The Big Leagues Some analysts say Brazil's airline industry needs more consolidation to boost industry profits.
|
39e8eb6d-53d4-4cd8-8358-7be4b5b3e2d7
|
7662.0
|
2017-01-27 00:00:00 UTC
|
Can Copa, Avianca And Latam Pick Up The Airline Rally In 2017?
|
AAL
|
https://www.nasdaq.com/articles/can-copa-avianca-and-latam-pick-airline-rally-2017-2017-01-27
|
nan
|
nan
|
After a weak start, U.S.-based airlines rebounded through the second half of 2016. But the fourth quarter reporting season finds the industry under rising scrutiny, as analysts grow increasingly concerned about valuation and margin pressure amid rising labor and fuel costs.
"Investors continue to focus on unit revenue, but costs are outpacing any improvement in revenue," said Helane Becker, a Cowen analyst in a report. "It's critical for the companies to discuss their plans to expand margins, with a clear timeline on when margins improve."
Southwest Airlines ( LUV ) on Thursday reported a 17% earnings decline in Q4, its first slip in 17 quarters. The number topped analyst targets. The company noted pressure from rising fuel and labor costs, but shares till surged more than 8% in heavy trade.
JetBlue ( JBLU ) reversed its early gains and dropped 2% on Thursday. Its earnings declined 11% - the first drop in 11 quarters - yet still also topped views. But the key metric of passenger revenue per available seat mile slipped nearly 2% for the quarter vs. a 6.5% increase in operating expenses.
But while the U.S. economic cycle is getting long in the tooth, Latin America was a bright spot for U.S. airlines, especially American Airlines Group ( AAL ), which has the most exposure there.
Latin American airlines flashed signs of recovery in 2016, boosted in part by stronger currencies.
Fundamentals for regional players, such as Panama-based Copa Holding s ( CPA ), have improved as the industry aggressively reduced capacity. Copa turned in its first earnings and revenue gain in nine quarters in Q3. Analysts expect a 40% earnings increase when it reports Q4 results after the close on Feb. 15.
Delta Air Lines ( DAL ), American, United Continental Holdings (UAL) and Jetblue have forecast improving unit revenue, another key industry metric related to airlines' available seats and how far they fly. The U.S. industry could turn positive in 2017, analysts say.
But Latin America's airline industry posted positive unit revenue last year, says a Cowen & Co. report.
There, analysts are eyeing capacity discipline among carriers amid hopes a wider recovery will take hold. Analysts are also paying close attention to Avianca Holdings (AVH), the region's second-biggest carrier behind Chile-based Latam Airlines (LFL).
Analyst expect a 119% earnings gain from Avianca in its fourth quarter, while revenue declines are forecast to slow to less than 1%. The company has not yet announced a fourth quarter reporting date.
Colombia-based Avianca is reported to be mulling selling a stake to Delta or United. Another possible scenario - a merger with Panama's Copa - could shake-up the industry, analysts say.
As it stands, the outlook for Latin America's airlines has improved, says Felipe Vinagre, analyst at Credit Suisse.
"If you combine improving currencies, fleet restructuring and cost cutting, a rational stance on capacity, and a better demand environment then I think better times will be possible," Vinagre said in an interview.
IBD'S TAKE:American Airlines, United Continental and Delta Air all traded just below buy points on Thursday.
He says Brazil is key to the industry's recovery and a turnaround in demand, as business travel picks up and its consumers have more income to take vacations.
A crippling recession hit Brazil in 2015, but Brazil's currency, the real, bounced back in 2016. The country unexpectedly slashed its benchmark interest rate in January, aiming to jump-start its moribund economy. While inflation has slowed, high debt levels and weak consumer confidence persist.
Those conditions coerced three out of the four major domestic airlines in Brazil to reduced capacity last year. Avianca Brazil was the exception, says Vinagre. Brothers German and Jose Efromovich, who control Colombia's Avianca, also own Avianca Brazil, a separate airline.
Avianca Eyes The Big Leagues
Some analysts say Brazil's airline industry needs more consolidation to boost industry profits. Delta has a 10% stake in Gol Linhas Aereas (GOL) while United has a 5% stake in privately-held Azul. Brazil currently limits foreign ownership to a 20% company stake.
If either Delta or United can grab a stake in Colombia's Avianca, it could lead to a partnership with Avianca Brazil, giving them a bigger footprint to compete vs. American in the region, says Vinagre. But he says the "best solution" would be for Gol to buy Avianca Brazil.
U.S. regulators in November approved Delta's plans to raise its stake in Grupo Aeromexico, Mexico's largest airline, to as much as 49% as part of an expanded partnership.
A merger between Copa Holdings and Colombia's Avianca, on the other hand, would move the Panama-based carrier into the big leagues, analysts say. The combined company would dominate the two main hubs in the region, Tocumen, Panama and Bogota, Colombia.
Avianca and Copa serve 33 common destinations out of the two hubs, and the destination overlap makes a merger attractive, says Savanthi Syth, an analyst at Raymond James, said in an interview.
IBD'S TAKE:Airlines have eased to a No. 21 ranking on Thursday among the 197 industry groups tracked by IBD .
"There's a lot of opportunity for Copa in the merger," added Syth. "But, it would be a sizable acquisition and not without risk."
Copa managed to weather the region's economic downturn with good margins and a strong balance sheet, Syth says. It also benefited from Panama being a U.S. dollar based economy. As a result, Copa had fewer headwinds than other regional carriers, whose revenue is in local currencies while expenses, such as fuel, are U.S. dollar-based.
Copa simplified its fleet to lower costs, flying mostly Boeing 737s, rather than a mix of aircraft like other carriers, Syth added. Avianca, though, flys Airbuses.
Maintaining Capacity Discipline
In December, Copa renamed its Colombian subsidiary Wingo and launched its as a low-cost carrier focused on point-to-point destinations. With Mexico-based, budget-carrier Volaris expanding operations to Costa Rica and other parts of Central America and Viva Air debuting in Peru, analysts say Copa is exploring the low-cost business model as a long-term strategy.
Despite periodic currency meltdowns, Latin America remains an attractive market, contends Syth. The region's air travel remains under-average compared to Asia, Europe and the U.S. That means, as the middle class grows, there is potential for seat demand to climb.
For Latin American airlines, the big issue is whether they can remain disciplined. A jump in industry capacity could snuff out a stock rally amid the region's fragile recovery, analysts say.
"Most airlines are taking a cautious approach," said Syth.
Analysts say Latam Airlines has been reducing capacity. In 2016, Qatar invested over $600 million in Latam for a 10% stake, easing its liquidity concerns. Since then, Latam has been relocating capacity to international markets, establishing routes to Spain and Italy, says Vinagre.
While U.S. value airlines have increased short-haul flights to Mexico and the Caribbean, targeting leisure travelers, the big U.S. carriers have shown restraint. American, United and Delta will hike capacity in Latin America in the low single digits in 2017, says a Cowen report, though Southwest will again add capacity at a double-digit clip, albeit in limited destinations.
Wall Street has called for airlines to focus on profit rather than on expanding inefficient capacity and money-losing routes. It wasn't long ago when industry overcapacity led to record low fares. Those fares spurred huge losses, ignited battles with unions over givebacks and sent many airlines into bankruptcy.
Warren Buffett's Berkshire Hathaway (BRKN) in November disclosed new stakes American, Delta, Southwest and United. That's a sharp contrast to 2013, when Buffett called airline stocks a "death trap."
Consolidation has left the top four carriers with 86% of industry revenue, says Barclays, which initiated coverage of the sector in December. "Margins have more than doubled" and relative debt levels are down among the largest airlines, said Barclays analyst Brandon Oglenski in a report.
Citigroup analyst Kevin Crissey initiated coverage of airline stocks in November. The last successful new entrant, he noted , was Virgin America in 2007.
"The U.S. airline industry has been hosting a renaissance party for investors," Crissey said in a report. "All of the stocks have tripled or better in the past five years. Although we are staying at the party from a ratings perspective, we've moved away from the punch bowl."
RELATED:
Can Delta, United, American Declare Mission Accomplished In 2017?
American Lifts Unit Revenue View; DOJ Backs Off Collusion Case
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
But while the U.S. economic cycle is getting long in the tooth, Latin America was a bright spot for U.S. airlines, especially American Airlines Group ( AAL ), which has the most exposure there. "If you combine improving currencies, fleet restructuring and cost cutting, a rational stance on capacity, and a better demand environment then I think better times will be possible," Vinagre said in an interview. With Mexico-based, budget-carrier Volaris expanding operations to Costa Rica and other parts of Central America and Viva Air debuting in Peru, analysts say Copa is exploring the low-cost business model as a long-term strategy.
|
But while the U.S. economic cycle is getting long in the tooth, Latin America was a bright spot for U.S. airlines, especially American Airlines Group ( AAL ), which has the most exposure there. But the fourth quarter reporting season finds the industry under rising scrutiny, as analysts grow increasingly concerned about valuation and margin pressure amid rising labor and fuel costs. Delta Air Lines ( DAL ), American, United Continental Holdings (UAL) and Jetblue have forecast improving unit revenue, another key industry metric related to airlines' available seats and how far they fly.
|
But while the U.S. economic cycle is getting long in the tooth, Latin America was a bright spot for U.S. airlines, especially American Airlines Group ( AAL ), which has the most exposure there. Delta Air Lines ( DAL ), American, United Continental Holdings (UAL) and Jetblue have forecast improving unit revenue, another key industry metric related to airlines' available seats and how far they fly. But Latin America's airline industry posted positive unit revenue last year, says a Cowen & Co. report.
|
But while the U.S. economic cycle is getting long in the tooth, Latin America was a bright spot for U.S. airlines, especially American Airlines Group ( AAL ), which has the most exposure there. Avianca Eyes The Big Leagues Some analysts say Brazil's airline industry needs more consolidation to boost industry profits. If either Delta or United can grab a stake in Colombia's Avianca, it could lead to a partnership with Avianca Brazil, giving them a bigger footprint to compete vs. American in the region, says Vinagre.
|
f55f966b-1e12-42c9-945a-002031185262
|
7663.0
|
2017-01-27 00:00:00 UTC
|
American Airlines (AAL) Q4 Earnings In Line, Revenues Top (Revised)
|
AAL
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https://www.nasdaq.com/articles/american-airlines-aal-q4-earnings-in-line-revenues-top-revised-2017-01-27
|
nan
|
nan
|
American Airlines Group Inc .'s AAL fourth quarter 2016 earnings (adjusted) of 92 cents per share were in line with the Zacks Consensus Estimate. Quarterly earnings decreased significantly year over year. Higher costs hurt the bottom line.
Revenues of $9,789 million were 1.7% above the year-ago figure and edged past the Zacks Consensus Estimate of $9,765.5 million. Total revenue per available seat miles (TRASM) improved 1.3% to 14.9 cents in the reported quarter. This was the first quarter in which the metric grew on a year-over-year basis since the fourth quarter of 2014.
Consolidated yield improved 1.8% to 15.62 cents. Passenger revenue per available seat miles improved 0.2% to 12.71 cents. Traffic was down 1.3%, whereas capacity was up 0.4%. This resulted in relatively empty planes. Consolidated load factor (percentage of seats filled by passengers) declined as traffic contracted and capacity expanded. Load factor deteriorated to 81.4% from the comparable year-ago figure of 82.7%.
Total operating expenses climbed 5.4% year over year to $9 billion primarily due to an increase in labor costs. Expenses pertaining to salaries and benefits surged 17.4%. Consolidated operating costs per available seat miles (CASM: excluding special items) increased 7.6%.
American Airlines Group, Inc. Price, Consensus and EPS Surprise
American Airlines Group, Inc. Price, Consensus and EPS Surprise | American Airlines Group, Inc. Quote
During the quarter, this Zacks Rank #2 (Buy) company returned $606 million to its shareholders through the payment of $52 million in dividends and buyback of shares worth $554 million. Furthermore, the carrier also declared a dividend of 10 cents per share. The dividend will be paid on Feb 27, 2017, to the shareholders as of Feb 13.
The carrier also approved a new $2 billion buyback program, which is scheduled to expire on Dec 31, 2018. The carrier has returned more than $9.6 billion to stockholders through share repurchases and dividends since mid-2014. We are impressed by the company's shareholder-friendly initiatives.
American Airlines remains focused on introducing new aircraft and retiring old ones from its fleet. In keeping with its aim to modernize its fleet, the carrier took delivery of 55 new mainline aircraft and 42 regional ones, during 2016. Also, the carrier invested $4.4 billion toward a new aircraft during the year.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Outlook
The company expects TRASM for the first quarter of 2017 to be up in the band of 2.5-4.5% (year over year). American Airlines expects pre-tax margin excluding special items in the first quarter to be approximately in the range of 3-5%. Consolidated CASM (excluding fuel and special items) is projected to increase 9% in the first quarter. The metric is expected to increase around 4% in 2017. Capacity (system) in 2017 is projected to increase 1% in 2017.
Other Important Releases Coming Up
Investors in the airline space keenly await the fourth-quarter earnings reports of SkyWest, Inc. SKYW , Spirit Airlines SAVE and Alaska Air Group ALK , slated for release on Feb 2, Feb 7 and Feb 8, respectively.
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(We are reissuing this article to correct a mistake. The original article, issued earlier today, should no longer be relied upon.)
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SkyWest, Inc. (SKYW): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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's AAL fourth quarter 2016 earnings (adjusted) of 92 cents per share were in line with the Zacks Consensus Estimate. Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Consolidated load factor (percentage of seats filled by passengers) declined as traffic contracted and capacity expanded.
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Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. 's AAL fourth quarter 2016 earnings (adjusted) of 92 cents per share were in line with the Zacks Consensus Estimate. American Airlines Group, Inc. Price, Consensus and EPS Surprise American Airlines Group, Inc. Price, Consensus and EPS Surprise | American Airlines Group, Inc. Quote During the quarter, this Zacks Rank #2 (Buy) company returned $606 million to its shareholders through the payment of $52 million in dividends and buyback of shares worth $554 million.
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Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. 's AAL fourth quarter 2016 earnings (adjusted) of 92 cents per share were in line with the Zacks Consensus Estimate. American Airlines Group, Inc. Price, Consensus and EPS Surprise American Airlines Group, Inc. Price, Consensus and EPS Surprise | American Airlines Group, Inc. Quote During the quarter, this Zacks Rank #2 (Buy) company returned $606 million to its shareholders through the payment of $52 million in dividends and buyback of shares worth $554 million.
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's AAL fourth quarter 2016 earnings (adjusted) of 92 cents per share were in line with the Zacks Consensus Estimate. Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Consolidated operating costs per available seat miles (CASM: excluding special items) increased 7.6%.
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899092fd-865b-494d-869c-6855c334170b
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7664.0
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2017-01-27 00:00:00 UTC
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JetBlue's Unit Revenues Drive Q4'16 Earnings; Capacity To Remain Restricted In Q1'17
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AAL
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https://www.nasdaq.com/articles/jetblues-unit-revenues-drive-q416-earnings-capacity-remain-restricted-q117-2017-01-27
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nan
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nan
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JetBlue Corporation ( JBLU ), one of the low-cost carriers in the US, posted earnings of $0.50 per share for the December quarter, almost 11% lower on a year-on-year basis, despite the improvement in its unit revenue. While the airline's fuel cost came in lower compared to a year ago, higher unit costs (excluding fuel costs) dragged down the company's operating profits for the quarter. On the positive side, the New York-based airline's strategy to restrict its capacity growth to bring back its unit revenue in the positive range worked well, enabling the company to post a growth of 3% in its top-line during the quarter. With a decent set of 4Q'16 results, JetBlue saw an initial rally of almost 4.5% in its stock price, trading at $22.73 per share during the day. However, the rally was short-lived, as the market was quick to reverse its optimism, when the low-cost carrier announced an expected drop of 8%-9% in its unit revenue in the month of January due to unexpected harsh winter conditions. As a result, the carrier ended the day at $21.10 per share, 3.2% lower than the previous trading day.
As mentioned earlier, JetBlue managed to control the free fall in its unit revenue by regulating its capacity growth for the quarter. The carrier restricted its capacity growth to only 4.5% in the quarter, as opposed to 10.4% in the same quarter last year, which caused its unit revenue to fall by 1.7% in the December quarter versus 4.7% in the September quarter. Going forward, the airline will continue to keep its capacity in discipline until its unit revenue becomes positive again. JetBlue expects to grow its capacity at a rate of 4.5%-6.5% for the first quarter of 2017, and at 6.5%-8.5% for the full year 2017.
On the cost side, JetBlue's average realized price for fuel rose to $1.56 per gallon in the current quarter, 5.4% higher on a sequential basis driven by the steep jump in crude oil prices in the last three months. However, the airline disclosed that it had hedged close to 25% of its fuel requirements, which enabled them to moderate the fuel expenses for the quarter. With the improving outlook for oil prices, JetBlue forecasts its March quarter fuel consumption to be around 194 million gallons and estimated fuel price to be $1.73 per gallon. This increase in fuel cost is likely to impact the airline's fuel expenditure, which could weigh heavily on its operating margins.
Apart from the fuel costs, JetBlue also witnessed a rise in its non-fuel costs during the fourth quarter. This was largely due to higher salaries and maintenance expenses incurred during the quarter. The airline is likely to face a similar trend in the coming quarters, as it anticipates its unit costs (excluding fuel) to increase in the range of 3% to 5% in the first quarter of 2017. This could create a dent on the carrier's earnings for the quarter. However, for the full year, the airline plans to restrict the unit cost growth to 1%-3% in order to maintain its margins.
In terms of the financial position, JetBlue repaid $220 million of scheduled debt and capital lease obligations during the quarter, and ended the year with a debt of $1.4 billion. Further, the airline expanded its share repurchase program to $500 million from $250 million through 2019. Of this, the carrier repurchased $120 million worth of its shares in the fourth quarter with an aim to enhance its capital structure. Going forward, the low-cost carrier expects to repay debt of approximately $50 million and $195 million in the March quarter and the full year 2017, respectively. Also, the airline plans to spend $305-$365 million in the first quarter and $1.2-$1.4 billion in the fiscal year on re-fleeting and maintenance of its airplanes.
Have more questions about JetBlue Corporation ( JBLU )? See the links below:
How Has JetBlue Performed In Comparison To Its Peers?
How Will The Mint Program Contribute Towards JetBlue's Long Term Growth?
The Increasing Significance Of Ancillary Services In The Aviation Industry
What Are The Initiatives Undertaken By JetBlue To Ensure Sustained Growth?
JetBlue's Operations In Boston And Its Struggle To Maintain Dominance
Millennials And Their Increasing Contribution Toward Air Travel
How Did JetBlue Perform Operationally In October?
Higher Expenses Weigh On JetBlue's Q3'16 Results, Even As Unit Revenues Improve
JetBlue's Q3'16 Earnings Preview: Reduction In Capacity Expansion To Arrest The Decline In Unit Revenues
How Did JetBlue Perform Operationally In September?
How Has The State Of Air Travel In The U.S. Changed Over The Years?
How Has JetBlue's Financial Position Improved Over The Last Few Years?
Is Renewable Diesel The Way Forward For The U.S. Aviation Industry?
How Did JetBlue Perform Operationally In August?
Can Passenger Airlines Revive The Growth In The Air Cargo Industry?
How Are The U.S. Carriers Taking Advantage Of The Restoration Of Diplomatic Ties Between U.S. And Mexico/Cuba?
How Are US Air Fares Correlated To Crude Oil Prices?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for JetBlue Corporation
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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JetBlue Corporation ( JBLU ), one of the low-cost carriers in the US, posted earnings of $0.50 per share for the December quarter, almost 11% lower on a year-on-year basis, despite the improvement in its unit revenue. However, the rally was short-lived, as the market was quick to reverse its optimism, when the low-cost carrier announced an expected drop of 8%-9% in its unit revenue in the month of January due to unexpected harsh winter conditions. For precise figures, please refer to our complete analysis for JetBlue Corporation View Interactive Institutional Research (Powered by Trefis): Global Large Cap | U.S.
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While the airline's fuel cost came in lower compared to a year ago, higher unit costs (excluding fuel costs) dragged down the company's operating profits for the quarter. Higher Expenses Weigh On JetBlue's Q3'16 Results, Even As Unit Revenues Improve JetBlue's Q3'16 Earnings Preview: Reduction In Capacity Expansion To Arrest The Decline In Unit Revenues How Did JetBlue Perform Operationally In September? Mid & Small Cap | European Large & Mid Cap More Trefis Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While the airline's fuel cost came in lower compared to a year ago, higher unit costs (excluding fuel costs) dragged down the company's operating profits for the quarter. The carrier restricted its capacity growth to only 4.5% in the quarter, as opposed to 10.4% in the same quarter last year, which caused its unit revenue to fall by 1.7% in the December quarter versus 4.7% in the September quarter. Higher Expenses Weigh On JetBlue's Q3'16 Results, Even As Unit Revenues Improve JetBlue's Q3'16 Earnings Preview: Reduction In Capacity Expansion To Arrest The Decline In Unit Revenues How Did JetBlue Perform Operationally In September?
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JetBlue Corporation ( JBLU ), one of the low-cost carriers in the US, posted earnings of $0.50 per share for the December quarter, almost 11% lower on a year-on-year basis, despite the improvement in its unit revenue. Going forward, the low-cost carrier expects to repay debt of approximately $50 million and $195 million in the March quarter and the full year 2017, respectively. Higher Expenses Weigh On JetBlue's Q3'16 Results, Even As Unit Revenues Improve JetBlue's Q3'16 Earnings Preview: Reduction In Capacity Expansion To Arrest The Decline In Unit Revenues How Did JetBlue Perform Operationally In September?
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83723077-6ca0-4161-89fe-e21dfea7fe99
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7665.0
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2017-01-26 00:00:00 UTC
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Pre-Market Earnings Report for January 27, 2017 : CVX, ABBV, HON, CL, NEE, GD, APD, AAL, BEN, GNTX, HRC, TCB
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AAL
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https://www.nasdaq.com/articles/pre-market-earnings-report-january-27-2017-cvx-abbv-hon-cl-nee-gd-apd-aal-ben-gntx-hrc-tcb
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The following companies are expected to report earnings prior to market open on 01/27/2017. Visit our Earnings Calendar for a full list of expected earnings releases.
Chevron Corporation ( CVX ) is reporting for the quarter ending December 31, 2016. The oil company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.64. This value represents a 306.45% increase compared to the same quarter last year. Zacks Investment Research reports that the 2016 Price to Earnings ratio for CVX is 87.49 vs. an industry ratio of 30.30, implying that they will have a higher earnings growth than their competitors in the same industry.
AbbVie Inc. ( ABBV ) is reporting for the quarter ending December 31, 2016. The large cap pharmaceutical company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.20. This value represents a 6.19% increase compared to the same quarter last year. In the past year ABBV has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for ABBV is 12.73 vs. an industry ratio of 16.70.
Honeywell International Inc. ( HON ) is reporting for the quarter ending December 31, 2016. The diversified operations company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.74. This value represents a 10.13% increase compared to the same quarter last year. HON missed the consensus earnings per share in the 4th calendar quarter of 2015 by -0.63%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for HON is 17.86 vs. an industry ratio of 20.90.
Colgate-Palmolive Company ( CL ) is reporting for the quarter ending December 31, 2016. The cleaning company's consensus earnings per share forecast from the 11 analysts that follow the stock is $0.75. This value represents a 2.74% increase compared to the same quarter last year. In the past year CL has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for CL is 24.35 vs. an industry ratio of 23.20, implying that they will have a higher earnings growth than their competitors in the same industry.
NextEra Energy, Inc. ( NEE ) is reporting for the quarter ending December 31, 2016. The electric power utilities company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.29. This value represents a 10.26% increase compared to the same quarter last year. In the past year NEE has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 5.45%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for NEE is 19.14 vs. an industry ratio of 11.20, implying that they will have a higher earnings growth than their competitors in the same industry.
General Dynamics Corporation ( GD ) is reporting for the quarter ending December 31, 2016. The aerospace and defense company's consensus earnings per share forecast from the 9 analysts that follow the stock is $2.54. This value represents a 5.83% increase compared to the same quarter last year. In the past year GD has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 4.64%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for GD is 17.91 vs. an industry ratio of 14.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Air Products and Chemicals, Inc. ( APD ) is reporting for the quarter ending December 31, 2016. The chemical company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.48. This value represents a 16.85% decrease compared to the same quarter last year. In the past year APD has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 1.01%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for APD is 23.28 vs. an industry ratio of 18.20, implying that they will have a higher earnings growth than their competitors in the same industry.
American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending December 31, 2016. The airline company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.92. This value represents a 54.00% decrease compared to the same quarter last year. In the past year AAL has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 66.67%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for AAL is 8.41 vs. an industry ratio of 20.20.
Franklin Resources, Inc. ( BEN ) is reporting for the quarter ending December 31, 2016. The finance/investment management company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.68. This value represents a 8.11% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2017 Price to Earnings ratio for BEN is 16.04 vs. an industry ratio of 14.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Gentex Corporation ( GNTX ) is reporting for the quarter ending December 31, 2016. The auto (truck) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.32. This value represents a 6.67% increase compared to the same quarter last year. In the past year GNTX has met analyst expectations once and beat the expectations the other three quarters. The "days to cover" for this stock exceeds 11 days. Zacks Investment Research reports that the 2016 Price to Earnings ratio for GNTX is 17.98 vs. an industry ratio of 13.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Hill-Rom Holdings Inc ( HRC ) is reporting for the quarter ending December 31, 2016. The medical products company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.75. This value represents a 10.29% increase compared to the same quarter last year. In the past year HRC has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 4.42%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for HRC is 15.88 vs. an industry ratio of 14.60, implying that they will have a higher earnings growth than their competitors in the same industry.
TCF Financial Corporation ( TCB ) is reporting for the quarter ending December 31, 2016. The bank (midwest) company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.30. This value represents a 3.45% increase compared to the same quarter last year. In the past year TCB has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2016 Price to Earnings ratio for TCB is 16.08 vs. an industry ratio of 18.10.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending December 31, 2016. In the past year AAL has beat the expectations every quarter. Zacks Investment Research reports that the 2016 Price to Earnings ratio for AAL is 8.41 vs. an industry ratio of 20.20.
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American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending December 31, 2016. In the past year AAL has beat the expectations every quarter. Zacks Investment Research reports that the 2016 Price to Earnings ratio for AAL is 8.41 vs. an industry ratio of 20.20.
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American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending December 31, 2016. In the past year AAL has beat the expectations every quarter. Zacks Investment Research reports that the 2016 Price to Earnings ratio for AAL is 8.41 vs. an industry ratio of 20.20.
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American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending December 31, 2016. In the past year AAL has beat the expectations every quarter. Zacks Investment Research reports that the 2016 Price to Earnings ratio for AAL is 8.41 vs. an industry ratio of 20.20.
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7f01aff8-59e0-453e-b5d9-eb64fdee9542
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7666.0
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2017-01-26 00:00:00 UTC
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Friday's Best Earnings Charts
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AAL
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https://www.nasdaq.com/articles/fridays-best-earnings-charts-2017-01-26
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nan
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There were over 400 companies reporting this week but these are the best of the best expected to finish out the week and report on Friday.
Despite what you might think, it's not easy for companies to beat every quarter or nearly every quarter for years at a time. It's only a select few who have this amazing track record.
If you're playing the earnings beat or miss, these are definitely 3 companies you want to have on your list to watch this week.
1. Abbvie (ABBV) has missed only once, in early 2014. Shares have been trending sideways, though, as the drug stocks have fallen out of favor.
2. Honeywell (HON) has a great earnings record, with just 1 miss in the last 5 years. Most people remember Honeywell because it was a Dow Industrial component from 1925 until February 2008 when it was removed to make room for more modern type companies. But look at its chart since then. It has one of the prettiest charts on the Street with shares looking to break out to new 5-year highs. (Take that Dow Industrials!) Will this earnings report put them over the top?
3. American Airlines (AAL) hasn't missed since it went public in 2014 but shares have certainly been turbulent. The conditions are good for the airlines, though, as the global economy improves in 2017.
What else should you know about these earnings charts? Tune into the short video to find out.
Want to Learn How to Trade Options During Earnings Season?
Dave Bartosiak takes you through the options trade this earnings season on Youtube on Zacks Live Trader .
Want to play the Alphabet (aka Google) options trade?
Dave gives his views below:
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Honeywell International Inc. (HON): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) hasn't missed since it went public in 2014 but shares have certainly been turbulent. Click to get this free report Honeywell International Inc. (HON): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report To read this article on Zacks.com click here. Most people remember Honeywell because it was a Dow Industrial component from 1925 until February 2008 when it was removed to make room for more modern type companies.
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American Airlines (AAL) hasn't missed since it went public in 2014 but shares have certainly been turbulent. Click to get this free report Honeywell International Inc. (HON): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Click to get this free report Honeywell International Inc. (HON): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) hasn't missed since it went public in 2014 but shares have certainly been turbulent. Dave gives his views below: Zacks' Top 10 Stocks for 2017 In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
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American Airlines (AAL) hasn't missed since it went public in 2014 but shares have certainly been turbulent. Click to get this free report Honeywell International Inc. (HON): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report To read this article on Zacks.com click here. If you're playing the earnings beat or miss, these are definitely 3 companies you want to have on your list to watch this week.
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9d02a240-bfc7-4b0a-8820-6afd48f02cf2
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7667.0
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2017-01-25 00:00:00 UTC
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Top Ranked Value Stocks to Buy for January 25th
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AAL
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https://www.nasdaq.com/articles/top-ranked-value-stocks-to-buy-for-january-25th-2017-01-25
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Here are four stocks with buy rank and strong value characteristics for investors to consider today, January 25 th :
Aceto Corporation (ACET): This diversified chemical company has a Zacks Rank #1 (Strong Buy) and seen the Zacks Consensus Estimate for its current year earnings surging 11.7% over the last 30 days.
Aceto Corporation Price and Consensus
Aceto Corporation Price and Consensus | Aceto Corporation Quote
Aceto has a price-to-earnings ratio (P/E) of 12.55, compared with 17.95 for the industry. The company possess a Value Score of A.
LG Display Co., Ltd. Price and Consensus | LG Display Co., Ltd. Quote
LG Display has a P/E ratio of 8.74, compared with 13.21 for the industry. The company possess a Value Score of A.
Synnex Corporation Price and Consensus | Synnex Corporation Quote
SYNNEX has a P/E ratio of 15.91, compared with 18.95 for the industry. The company possess a Value Score of A.
American Airlines Group, Inc. Price and Consensus | American Airlines Group, Inc. Quote
American Airlines has a P/E ratio of 10.10, compared with 11.03 for the industry. The company possess a Value Score of A.
See the full list of top ranked stocks here
Learn more about the Value score and how it is calculated here
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Synnex Corporation (SNX): Free Stock Analysis Report
LG Display Co., Ltd. (LPL): Free Stock Analysis Report
Aceto Corporation (ACET): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Click to get this free report Synnex Corporation (SNX): Free Stock Analysis Report LG Display Co., Ltd. (LPL): Free Stock Analysis Report Aceto Corporation (ACET): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Here are four stocks with buy rank and strong value characteristics for investors to consider today, January 25 th : Aceto Corporation (ACET): This diversified chemical company has a Zacks Rank #1 (Strong Buy) and seen the Zacks Consensus Estimate for its current year earnings surging 11.7% over the last 30 days. Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum .
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Click to get this free report Synnex Corporation (SNX): Free Stock Analysis Report LG Display Co., Ltd. (LPL): Free Stock Analysis Report Aceto Corporation (ACET): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Aceto Corporation Price and Consensus Aceto Corporation Price and Consensus | Aceto Corporation Quote Aceto has a price-to-earnings ratio (P/E) of 12.55, compared with 17.95 for the industry. The company possess a Value Score of A. American Airlines Group, Inc. Price and Consensus | American Airlines Group, Inc. Quote American Airlines has a P/E ratio of 10.10, compared with 11.03 for the industry.
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Click to get this free report Synnex Corporation (SNX): Free Stock Analysis Report LG Display Co., Ltd. (LPL): Free Stock Analysis Report Aceto Corporation (ACET): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Here are four stocks with buy rank and strong value characteristics for investors to consider today, January 25 th : Aceto Corporation (ACET): This diversified chemical company has a Zacks Rank #1 (Strong Buy) and seen the Zacks Consensus Estimate for its current year earnings surging 11.7% over the last 30 days. Aceto Corporation Price and Consensus Aceto Corporation Price and Consensus | Aceto Corporation Quote Aceto has a price-to-earnings ratio (P/E) of 12.55, compared with 17.95 for the industry.
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Click to get this free report Synnex Corporation (SNX): Free Stock Analysis Report LG Display Co., Ltd. (LPL): Free Stock Analysis Report Aceto Corporation (ACET): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Here are four stocks with buy rank and strong value characteristics for investors to consider today, January 25 th : Aceto Corporation (ACET): This diversified chemical company has a Zacks Rank #1 (Strong Buy) and seen the Zacks Consensus Estimate for its current year earnings surging 11.7% over the last 30 days. from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy).
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26c85100-b563-4319-bc48-b58d2dae7f10
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7668.0
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2017-01-25 00:00:00 UTC
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Noteworthy Wednesday Option Activity: YRCW, AAL, SHW
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AAL
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity-yrcw-aal-shw-2017-01-25
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in YRC Worldwide Inc (Symbol: YRCW), where a total of 4,620 contracts have traded so far, representing approximately 462,000 underlying shares. That amounts to about 76% of YRCW's average daily trading volume over the past month of 608,045 shares. Particularly high volume was seen for the $20 strike call option expiring July 21, 2017 , with 1,016 contracts trading so far today, representing approximately 101,600 underlying shares of YRCW. Below is a chart showing YRCW's trailing twelve month trading history, with the $20 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) saw options trading volume of 38,608 contracts, representing approximately 3.9 million underlying shares or approximately 75.8% of AAL's average daily trading volume over the past month, of 5.1 million shares. Particularly high volume was seen for the $35 strike put option expiring January 19, 2018 , with 12,519 contracts trading so far today, representing approximately 1.3 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $35 strike highlighted in orange:
And Sherwin-Williams Co (Symbol: SHW) options are showing a volume of 5,664 contracts thus far today. That number of contracts represents approximately 566,400 underlying shares, working out to a sizeable 74.3% of SHW's average daily trading volume over the past month, of 762,010 shares. Especially high volume was seen for the $300 strike call option expiring June 16, 2017 , with 2,008 contracts trading so far today, representing approximately 200,800 underlying shares of SHW. Below is a chart showing SHW's trailing twelve month trading history, with the $300 strike highlighted in orange:
For the various different available expirations for YRCW options , AAL options , or SHW options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $35 strike put option expiring January 19, 2018 , with 12,519 contracts trading so far today, representing approximately 1.3 million underlying shares of AAL. Below is a chart showing YRCW's trailing twelve month trading history, with the $20 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 38,608 contracts, representing approximately 3.9 million underlying shares or approximately 75.8% of AAL's average daily trading volume over the past month, of 5.1 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $35 strike highlighted in orange: And Sherwin-Williams Co (Symbol: SHW) options are showing a volume of 5,664 contracts thus far today.
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Below is a chart showing YRCW's trailing twelve month trading history, with the $20 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 38,608 contracts, representing approximately 3.9 million underlying shares or approximately 75.8% of AAL's average daily trading volume over the past month, of 5.1 million shares. Particularly high volume was seen for the $35 strike put option expiring January 19, 2018 , with 12,519 contracts trading so far today, representing approximately 1.3 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $35 strike highlighted in orange: And Sherwin-Williams Co (Symbol: SHW) options are showing a volume of 5,664 contracts thus far today.
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Below is a chart showing YRCW's trailing twelve month trading history, with the $20 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 38,608 contracts, representing approximately 3.9 million underlying shares or approximately 75.8% of AAL's average daily trading volume over the past month, of 5.1 million shares. Below is a chart showing SHW's trailing twelve month trading history, with the $300 strike highlighted in orange: For the various different available expirations for YRCW options , AAL options , or SHW options , visit StockOptionsChannel.com. Particularly high volume was seen for the $35 strike put option expiring January 19, 2018 , with 12,519 contracts trading so far today, representing approximately 1.3 million underlying shares of AAL.
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Below is a chart showing YRCW's trailing twelve month trading history, with the $20 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 38,608 contracts, representing approximately 3.9 million underlying shares or approximately 75.8% of AAL's average daily trading volume over the past month, of 5.1 million shares. Below is a chart showing SHW's trailing twelve month trading history, with the $300 strike highlighted in orange: For the various different available expirations for YRCW options , AAL options , or SHW options , visit StockOptionsChannel.com. Particularly high volume was seen for the $35 strike put option expiring January 19, 2018 , with 12,519 contracts trading so far today, representing approximately 1.3 million underlying shares of AAL.
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0bd7b283-9853-4e6b-9133-fcac4564880d
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7669.0
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2017-01-24 00:00:00 UTC
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JetBlue Airways (JBLU) Q4 Earnings: A Beat in the Cards?
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AAL
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https://www.nasdaq.com/articles/jetblue-airways-jblu-q4-earnings%3A-a-beat-in-the-cards-2017-01-24
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nan
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nan
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JetBlue Airways CorporationJBLU is scheduled to report its fourth-quarter 2016 results on Jan 26, before market opens.
In the third quarter, the carrier had reported lower-than-expected earnings per share. Higher labor costs hurt the bottom line as expenses for salaries, wages and other benefits climbed 8% to $421 million for the low-cost carrier. Operating costs per available seat mile (CASM) - excluding fuel and profit sharing - increased 3.1% for JetBlue to 7.53 cents in the third quarter.
However, the stock has seen brighter times since the third quarter earnings miss, gaining over 16% since that time. The stock outpaced the Zacks categorized Transportation-Airline industry over the last three months. The stock returned 16.44% compared with the industry's gain of 15.8% over the same period.
We expect JetBlue Airways to top the Zacks Consensus Estimate for the fourth quarter. Our quantitative model too shows that the company is likely to beat earnings because it has the perfect combination of two key ingredients.
Zacks ESP: The Earnings ESP for JetBlue Airways is +2.04% with the Most Accurate estimate exceeding the Zacks Consensus Estimate of 49 cents per share by a penny. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: JetBlue Airways carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. Conversely, the Sell-rated stocks (Zacks Rank #4 or 5) should never be considered while going into an earnings announcement.
The combination of JetBlue Airways' favorable Zacks Rank and a positive ESP makes us reasonably confident of earnings beat.
JetBlue Airways Corporation Price and EPS Surprise
JetBlue Airways Corporation Price and EPS Surprise | JetBlue Airways Corporation Quote
Factors Likely at Play
In fact, JetBlue has an impressive history with respect to earnings per share. The third-quarter earnings miss was the sole such instance, in the last four quarters. It has surpassed the Zacks Consensus Estimate in three of the last four quarters with an average beat of 6.49%.
We are impressed by JetBlue Airways' efforts to expand its operations. In keeping with the objective, JetBlue made a minority investment in private jet company JetSuite in October. JetSuite, based in California, is one of the largest private jet operators in the US. Its new offering, JetSuiteX has many unique facilities, like no lines, ability to check in just 15 minutes before a flight, free Wi-Fi, checked bags, seat assignments to name a few.
We are also positive on the resumption of commercial flights to Havana by JetBlue in November. The move should boost its top line, as Havana is a favorite tourist spot. In fact, the place is the company's 100th destination. Moreover, the company's efforts to modernize its fleet are also encouraging.
However, the bottom line is likely to be impacted by higher costs due to the recent labor deals inked by the company. Consequently, the carrier expects consolidated unit cost per available seat mile (CASM: mainline ) - excluding fuel and special items - to grow in the band of 4.5 - 6.5% (including negative impact to the tune of 0.5% due to Hurricane Mathew) in the fourth quarter.
Stocks to Consider
Apart from JetBlue Airways , investors who are interested in the airline space may also consider the following stocks. This is because our model shows that these companies too possess the right combination of elements to post an earnings beat this quarter.
American Airlines GroupAAL holds a Zacks Rank #2 and an Earnings ESP of +1.11%. It is scheduled to report fourth-quarter results on Jan 27. The company beat the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 20.48%.You can see the complete list of today's Zacks #1 Rank stocks here.
Southwest Airlines Co.LUV carries a Zacks Rank #2 and an Earnings ESP of +1.47%. It is scheduled to report fourth-quarter results on Jan 26. The company beat the Zacks Consensus Estimate in two of the last four quarters with an average positive surprise of 2%.
Spirit AirlinesSAVE has a Zacks Rank #2 and an Earnings ESP of +2.78%. It is scheduled to report fourth-quarter results on Feb 7. The company beat the Zacks Consensus Estimate in each of the last four quarters with an average positive surprise of 4.71%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Company (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines GroupAAL holds a Zacks Rank #2 and an Earnings ESP of +1.11%. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Higher labor costs hurt the bottom line as expenses for salaries, wages and other benefits climbed 8% to $421 million for the low-cost carrier.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL holds a Zacks Rank #2 and an Earnings ESP of +1.11%. Zacks Rank: JetBlue Airways carries a Zacks Rank #3 (Hold).
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL holds a Zacks Rank #2 and an Earnings ESP of +1.11%. JetBlue Airways Corporation Price and EPS Surprise JetBlue Airways Corporation Price and EPS Surprise | JetBlue Airways Corporation Quote Factors Likely at Play In fact, JetBlue has an impressive history with respect to earnings per share.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL holds a Zacks Rank #2 and an Earnings ESP of +1.11%. We expect JetBlue Airways to top the Zacks Consensus Estimate for the fourth quarter.
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ef54f826-2ee9-48a9-baa6-267c71e9c806
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7670.0
|
2017-01-24 00:00:00 UTC
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American Airlines (AAL) Q4 Earnings: Is a Beat in Store?
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-q4-earnings%3A-is-a-beat-in-store-2017-01-24
|
nan
|
nan
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American Airlines GroupAAL is scheduled to unveil fourth-quarter 2016 results on Jan 27, before the market opens.
In the third quarter, the carrier had delivered a positive earnings surprise of 66.7%. The results were aided by low fuel costs. Quarterly earnings also increased 1% year over year. Quarterly revenues of $10,594 million were 1.1% below the year-ago figure, but edged past the Zacks Consensus Estimate of $10,549 million.
The American Airlines stock has gained over 15% since the third-quarter earnings beat. The stock has outpaced the Zacks categorized Transportation-Airline industry in the last three months. The stock returned 18.3% compared with the industry's gain of 15.8% over the same period.
In fact, the company has an impressive history with respect to earnings per share. It surpassed the Zacks Consensus Estimate in each of the last four quarters with an average beat of 20.48%. We expect American Airlines to keep up the impressive trend and top the Zacks Consensus Estimate for the fourth quarter as well. Our quantitative model too shows that the company is likely to beat earnings because it has the perfect combination of two key ingredients.
Zacks ESP: The Earnings ESP for American Airlines is +1.11% with the Most Accurate estimate exceeding the Zacks Consensus Estimate of 90 cents per share by a penny. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: American Airlines carries a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates. Conversely, the Sell-rated stocks (Zacks Rank #4 or 5) should never be considered while going into an earnings announcement.
The combination of American Airlines' favorable Zacks Rank and a positive ESP makes us reasonably confident of earnings beat.
What is Driving the Better-than-Expected Earnings?
American Airlines recently unveiled a bullish guidance for the fourth-quarter total revenue per available seat mile (TRASM: a key measure of unit revenues). The carrier now expects the metric to be flat at 2% on a year-over-year basis, in the final quarter of 2016. The view represents a marked improvement from the guidance issued last month, when it expected the metric in the band of 1% decline to an increase of 1%. We expect American Airlines to come out with a further improved view on unit revenues for the first quarter, just as Delta Air Lines DAL did on Jan 12.
The improved view was due to "improving yields." The company also raised its guidance for pre-tax margin, excluding special items, on the basis of higher yields. Pre-tax margin for the fourth quarter is now expected in the band of 7-9% compared with the prior guidance range of 6-8%.
However, the bottom line is likely to be impacted by higher costs due to the recent labor deals inked by the company. Consequently, the carrier expects consolidated unit cost per available seat mile (CASM: mainline ) - excluding fuel and special items - to increase in the band of 9% to 11% in the final quarter of 2016.
We are impressed by the company's efforts to reward shareholders through share buybacks and dividend payments. During the third quarter, the company returned $669 million billion to shareholders through dividends of $53 million and share buyback worth $616 million. The carrier has returned more than $9 billion to stockholders through share repurchases and dividends since mid-2014.
Other Stocks to Consider
Apart from American Airlines, investors who are interested in the airline space may also consider the following stocks. This is because our model shows that these companies too possess the right combination of elements to post an earnings beat this quarter.
JetBlue Airways Corp.JBLU has a Zacks Rank #3 and an Earnings ESP of +2.04%. The company is scheduled to report fourth-quarter results on Jan 26. The company beat the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 6.49%.
Southwest Airlines Co.LUV carries a Zacks Rank #2 and an Earnings ESP of +1.47%. The company is scheduled to report fourth-quarter results on Jan 26. The company beat the Zacks Consensus Estimate in two of the last four quarters with an average positive surprise of 2%.
You can see the complete list of today's Zacks #1 Rank stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Company (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines GroupAAL is scheduled to unveil fourth-quarter 2016 results on Jan 27, before the market opens. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL is scheduled to unveil fourth-quarter 2016 results on Jan 27, before the market opens. Zacks Rank: American Airlines carries a Zacks Rank #2 (Buy).
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL is scheduled to unveil fourth-quarter 2016 results on Jan 27, before the market opens. Zacks ESP: The Earnings ESP for American Airlines is +1.11% with the Most Accurate estimate exceeding the Zacks Consensus Estimate of 90 cents per share by a penny.
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American Airlines GroupAAL is scheduled to unveil fourth-quarter 2016 results on Jan 27, before the market opens. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We expect American Airlines to keep up the impressive trend and top the Zacks Consensus Estimate for the fourth quarter as well.
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885e37a1-bd22-4d08-bae9-73447ded178d
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7671.0
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2017-01-24 00:00:00 UTC
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Will C.H. Robinson (CHRW) Q4 Earnings Please Investors?
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AAL
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https://www.nasdaq.com/articles/will-c.h.-robinson-chrw-q4-earnings-please-investors-2017-01-24
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nan
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nan
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C.H. Robinson WorldwideCHRW is scheduled to unveil its fourth-quarter 2016 results on Jan 31, after the close of market.
In the third quarter of 2016, this transportation company had reported lower-than-expected earnings per share. Moreover, the bottom line deteriorated 6.25% year over year.
On the other hand, total revenue beat the Zacks Consensus Estimate of $3,328 million, but dropped 1.8% year over year to $3,356 million. Results were hurt by the weak pricing environment.
However, the stock has seen brighter times since the third quarter earnings miss, gaining over 6% since that time. The stock has outpaced the Zacks categorized Transportation-Services industry over the last three months. The stock has returned 6.12%, while the industry lost 4.42% over the same period.
Moreover, an earnings beat might not be too difficult for C.H. Robinson in the quarter due to reduced expectations. The Zacks Consensus Estimate for the fourth quarter of 2016 is a pretty conservative 84 cents, which is 3.4% below the year-ago figure.
Our quantitative model shows that the company is likely to beat earnings because it has the perfect combination of two key ingredients.
Zacks ESP: The Earnings ESP for C.H. Robinson is +2.38% with the Most Accurate estimate of 86 cents that exceeds the Zacks Consensus Estimate by 2 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: C.H. Robinson carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. Conversely, the Sell-rated stocks (Zacks Rank #4 or 5) should never be considered while going into an earnings announcement.
The combination of C.H. Robinson's favorable Zacks Rank and a positive ESP makes us reasonably confident of earnings beat.
C.H. Robinson Worldwide, Inc. Price and EPS Surprise
C.H. Robinson Worldwide, Inc. Price and EPS Surprise | C.H. Robinson Worldwide, Inc. Quote
Factors Likely at Play
We are impressed by the company's efforts to reward shareholders through dividends and share buy backs. Furthermore, in Dec 2016, the board of directors of the company approved an 4.7% hike in its quarterly cash dividend, raising the figure to $0.45 per share. We believe that the dividend hike not only highlights C.H. Robinson's commitment to create value for shareholders, but also underscores the company's healthy financial condition and confidence on its business, going forward.
Moreover, a look at the past records reveals C.H. Robinson's stable dividend payment history. This investor-friendly attitude certainly boosts the confidence of the shareholders in the stock.
We are also impressed by the company's efforts to expand. In keeping with this objective, the company announced acquisition of Melbourne, Australia based company APC Logistics for around AUD 300 million (approx. $225 million) in the fourth quarter. This deal has boosted C.H. Robinson's presence in the Australia- New Zealand region. APC Logistics, prior to being acquired, was a well-known name in the freight industry providing freight forwarding and brokerage services with commendable customer and carrier relationships. The renewal of the logistics partnership with Tesco in Nov, 2016 is also a positive.
Other Stocks to Consider
Apart from C.H. Robinson, investors who are interested in the transportation space may also consider the following stocks. This is because our model shows that these companies too possess the right combination of elements to post an earnings beat this quarter.
American Airlines GroupAAL holds a Zacks Rank #2 and an Earnings ESP of +1.11%. It is scheduled to report fourth-quarter results on Jan 27. The company beat the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 20.48%. You can see the complete list of today's Zacks #1 Rank stocks here .
Southwest Airlines Co.LUV carries a Zacks Rank #2 and an Earnings ESP of +1.47%. It is scheduled to report fourth-quarter results on Jan 26. The company beat the Zacks Consensus Estimate in two of the last four quarters with an average positive surprise of 2%.
Spirit AirlinesSAVE has a Zacks Rank #2 and an Earnings ESP of +2.78%. It is scheduled to report fourth-quarter results on Feb 7. The company beat the Zacks Consensus Estimate in each of the last four quarters with an average positive surprise of 4.71%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Company (LUV): Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines GroupAAL holds a Zacks Rank #2 and an Earnings ESP of +1.11%. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Robinson Worldwide, Inc. Quote Factors Likely at Play We are impressed by the company's efforts to reward shareholders through dividends and share buy backs.
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Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL holds a Zacks Rank #2 and an Earnings ESP of +1.11%. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report C.H.
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Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL holds a Zacks Rank #2 and an Earnings ESP of +1.11%. Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
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American Airlines GroupAAL holds a Zacks Rank #2 and an Earnings ESP of +1.11%. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Robinson Worldwide, Inc. Quote Factors Likely at Play We are impressed by the company's efforts to reward shareholders through dividends and share buy backs.
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7f9a6f77-e0cf-4bd9-b56c-ad3f37276b69
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7672.0
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2017-01-22 00:00:00 UTC
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American Airlines Follows United, Bans Carry-On Suitcases for Cheapest Tickets
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AAL
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https://www.nasdaq.com/articles/american-airlines-follows-united-bans-carry-suitcases-cheapest-tickets-2017-01-22
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nan
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nan
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Full-service airlines have fewer perks than ever for travelers flying in coach. However, one thing that had remained sacred in recent years was the right to bring a carry-on suitcase and put it in the overhead bin for free.
Even this is no longer true across the board. Late last year, United Continental (NYSE: UAL) announced plans to introduce a new " Basic Economy " fare that doesn't allow the purchaser to bring a full size carry-on bag. (It also doesn't include advance seat selection.)
Last week, American Airlines (NASDAQ: AAL) followed suit. It will also introduce basic economy fares on certain routes in the coming months, and it is adopting most of the same policies as United.
American Airlines has announced its version of basic economy fares. Image source: American Airlines.
The next step in unbundling airfares
In the past decade, "unbundling" has become a key theme in the airline industry. Numerous perks that used to be included with every ticket have become extras that require an additional fee.
To some observers, unbundling is good for everyone, because it allows airlines to hold down airfares despite rising costs (especially for labor). Customers can then choose to add on only those extra services that they actually need. Other pundits and consumer advocates see the move toward unbundling as a cynical ploy by airlines to pad their profits.
The latest evolution in unbundling involves adding new fare types. Instead of removing perks from their standard coach fares, full-service airlines are creating a new, lower tier of bare-bones fares. Customers still have the option to pay somewhat more for a traditional coach ticket if they don't want to deal with the restrictions of these new basic economy fares.
American Airlines follows United closely
American Airlines' basic economy fares will have very similar restrictions relative to what United announced in November. Most notably, basic economy fares don't have a carry-on bag allowance.
You're still permitted to bring a personal item that fits beneath the seat in front of you, but any larger bags must be checked. The checked baggage fees are the same as for standard coach fares: $25 for the first checked bag and $35 for the second. Customers who buy a basic economy fare and bring a full-size carry-on will have to check it at the gate and pay a $25 penalty on top of the usual fee.
Another common feature of basic economy fares at American and United is that it won't be possible to choose your seat in advance. Additionally, basic economy ticketholders will be the last to board at both carriers. Finally, American and United won't allow refunds, changes, or upgrades if you buy a basic economy fare.
United and American have adopted similar policies for basic economy. Image source: The Motley Fool.
Both American Airlines and United Airlines will exempt elite frequent fliers and holders of their co-branded credit cards from many of the restrictions of basic economy tickets. For example, these customers will be allowed to board early and bring a carry-on bag even if they buy a basic economy fare.
A kinder, gentler version of basic economy?
American and United both emphasize in their marketing materials that basic economy fares still entitle you to the same onboard service, like free soft drinks, snacks (in some cases), and inflight entertainment.
However, American Airlines is going a step further in order to appear more humane. When it announced the new basic economy product, American said that it would be possible to pay extra for a seat assignment starting 48 hours before the flight. By contrast, United Airlines doesn't offer any alternative to having your seat assigned by the airline.
More importantly, American says that for families traveling with children under age 13, it will attempt to seat each child next to an adult. United clearly states that families will not be able to sit together.
Yet it's not clear how American Airlines would pull this off. On most flights, customers who buy regular coach fares would be likely to snap up all of the window and aisle seats, leaving just middle seats for basic economy ticketholders. Unless American is reserving some seats for families traveling in basic economy, it won't be able to seat families together very often.
This is the new normal
Over the past decade, budget airlines have dramatically increased their share of the U.S. airline industry, undercutting the legacy carriers on price. As a result, executives at full-service airlines recognize that many of their customers are not loyal -- they just want the lowest price possible.
Basic economy fares will help American Airlines and United Continental compete with budget carriers for these travelers without instituting costly across-the-board price cuts. It's another annoyance for the traveling public. However, it may be necessary to ensure that all three legacy carriers can stay in business in the long run.
10 stocks we like better than American Airlines Group
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Adam Levine-Weinberg has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Last week, American Airlines (NASDAQ: AAL) followed suit. Late last year, United Continental (NYSE: UAL) announced plans to introduce a new " Basic Economy " fare that doesn't allow the purchaser to bring a full size carry-on bag. American and United both emphasize in their marketing materials that basic economy fares still entitle you to the same onboard service, like free soft drinks, snacks (in some cases), and inflight entertainment.
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Last week, American Airlines (NASDAQ: AAL) followed suit. Late last year, United Continental (NYSE: UAL) announced plans to introduce a new " Basic Economy " fare that doesn't allow the purchaser to bring a full size carry-on bag. American Airlines follows United closely American Airlines' basic economy fares will have very similar restrictions relative to what United announced in November.
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Last week, American Airlines (NASDAQ: AAL) followed suit. American Airlines follows United closely American Airlines' basic economy fares will have very similar restrictions relative to what United announced in November. Both American Airlines and United Airlines will exempt elite frequent fliers and holders of their co-branded credit cards from many of the restrictions of basic economy tickets.
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Last week, American Airlines (NASDAQ: AAL) followed suit. American Airlines has announced its version of basic economy fares. The next step in unbundling airfares In the past decade, "unbundling" has become a key theme in the airline industry.
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d3cab366-9ffb-4fb1-9c33-a382a8e99fee
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7673.0
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2017-01-20 00:00:00 UTC
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Zacks Value Investor Highlights: American Airlines, DSW, Lions Gate Entertainment, Parker Drilling and Unitedhealth Group
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AAL
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https://www.nasdaq.com/articles/zacks-value-investor-highlights%3A-american-airlines-dsw-lions-gate-entertainment-parker
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For Immediate Release
Chicago, IL - January 20, 2017 - Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/245941/use-the-ps-ratio-to-find-value-stocks )
Use the P/S Ratio to Find Value Stocks
Welcome to Episode #26 of the Value Investor Podcast
Every week, Zacks value stock strategist and the Editor of Zacks Value Investor portfolio service, Tracey Ryniec, talks about all things happening in the value stock universe, including her top stock picks.
Most value investors use the P/E ratio to search for value stocks but there are other ratios that Tracey thinks you should consider like the price-to-sales ratio (P/S).
The P/S ratio is price divided by sales. A ratio of 1.0 means you are paying $1 for every $1 in sales. So value investors should look for a P/S ratio under 1.0.
If it's under 1.0, that means a value investor is paying less for those sales.
Why should a value investor care about sales at all?
Many like to use the P/S ratio because it's harder to manipulate than the P/E or other ratios. After all, a sale means that widget has to be sold to a customer or that cheeseburger is purchased. It's hard to make the sales numbers look better than they are. They are what they are.
Tracey ran a screen of Zacks Rank #1 (Strong Buy) and #2 (Buy) stocks along with a P/S ratio under 1.0 and got 169 companies. These are five names that caught her eye.
5 Stocks With P/S Ratios Under 1.0
1.American Airlines (NASDAQ: AAL - Free Report ) has a P/S ratio of 0.6.
2.DSW (NYSE: DSW - Free Report ) is in the scary retail sector but it's not apparel. Shoes are always a cheap way to update a wardrobe. It has a P/S ratio of 0.6.
3.Lions Gate Entertainment (NYSE: LGF.A - Free Report ) just bought out STARZ and now owns the Outlander series. It has a P/S ratio of only 0.8.
4.Parker Drilling (NYSE: PKD - Free Report ) is in the energy field which most investors have been ignoring. It has a P/S ratio of 0.7.
5.Unitedhealth Group (NYSE: UNH - Free Report ) just reported earnings and beat the Zacks Consensus again. It has one of the best earnings charts on the Street. It has a P/S ratio of only 0.8.
Investors shouldn't stop with the P/S ratio, however. Dig in deeper to find out what the story is behind these stocks. Do the rest of the fundamentals look as good as the P/S ratio and the Zacks Rank?
Find out what else Tracey thinks about the price-to-sales ratio on this week's podcast.
Want more insights from Tracey?
Check out her weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks she thinks are the best bargains now. Click here to learn more>>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
DSW Inc. (DSW): Free Stock Analysis Report
Lions Gate Entertainment Corp. (LGF.A): Free Stock Analysis Report
Parker Drilling Co. (PKD): Free Stock Analysis Report
UnitedHealth Group Inc. (UNH): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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5 Stocks With P/S Ratios Under 1.0 1.American Airlines (NASDAQ: AAL - Free Report ) has a P/S ratio of 0.6. Get the full Report on AAL - FREE Get the full Report on DSW - FREE Get the full Report on LGF.A - FREE Get the full Report on PKD - FREE Get the full Report on UNH - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report DSW Inc. (DSW): Free Stock Analysis Report Lions Gate Entertainment Corp. (LGF.A): Free Stock Analysis Report Parker Drilling Co. (PKD): Free Stock Analysis Report UnitedHealth Group Inc. (UNH): Free Stock Analysis Report To read this article on Zacks.com click here.
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Get the full Report on AAL - FREE Get the full Report on DSW - FREE Get the full Report on LGF.A - FREE Get the full Report on PKD - FREE Get the full Report on UNH - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report DSW Inc. (DSW): Free Stock Analysis Report Lions Gate Entertainment Corp. (LGF.A): Free Stock Analysis Report Parker Drilling Co. (PKD): Free Stock Analysis Report UnitedHealth Group Inc. (UNH): Free Stock Analysis Report To read this article on Zacks.com click here. 5 Stocks With P/S Ratios Under 1.0 1.American Airlines (NASDAQ: AAL - Free Report ) has a P/S ratio of 0.6.
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Get the full Report on AAL - FREE Get the full Report on DSW - FREE Get the full Report on LGF.A - FREE Get the full Report on PKD - FREE Get the full Report on UNH - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report DSW Inc. (DSW): Free Stock Analysis Report Lions Gate Entertainment Corp. (LGF.A): Free Stock Analysis Report Parker Drilling Co. (PKD): Free Stock Analysis Report UnitedHealth Group Inc. (UNH): Free Stock Analysis Report To read this article on Zacks.com click here. 5 Stocks With P/S Ratios Under 1.0 1.American Airlines (NASDAQ: AAL - Free Report ) has a P/S ratio of 0.6.
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5 Stocks With P/S Ratios Under 1.0 1.American Airlines (NASDAQ: AAL - Free Report ) has a P/S ratio of 0.6. Get the full Report on AAL - FREE Get the full Report on DSW - FREE Get the full Report on LGF.A - FREE Get the full Report on PKD - FREE Get the full Report on UNH - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report DSW Inc. (DSW): Free Stock Analysis Report Lions Gate Entertainment Corp. (LGF.A): Free Stock Analysis Report Parker Drilling Co. (PKD): Free Stock Analysis Report UnitedHealth Group Inc. (UNH): Free Stock Analysis Report To read this article on Zacks.com click here.
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713bb8a6-14ca-4f87-b335-0e2a4a5c3812
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7674.0
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2017-01-20 00:00:00 UTC
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Southwest Airlines (LUV) Q4 Earnings: A Beat in the Cards?
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-luv-q4-earnings%3A-a-beat-in-the-cards-2017-01-20
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We expect Dallas-based, Southwest Airlines Co.LUV to report better-than-expected earnings in the fourth quarter of 2016. The carrier will release its results on Jan 26, before market opens.
In the third quarter, the carrier reported a positive earnings surprise of 5.68%. Low fuel costs boosted the bottom line. A conservative Zacks Consensus Estimate for the third quarter (88 cents per share, which was 4.34% lower than the year-ago figure) also contributed to the earnings beat. Revenues also surpassed expectations.
The Southwest Airlines stock has gained over 19% since the third-quarter earnings beat. The stock has outpaced the Zacks categorized Transportation-Airline industry over the last three months. The stock returned 18% compared with the industry's gain of 13.5% over the same period.
Our quantitative model shows that Southwest Airlines is likely to beat earnings because it has the perfect combination of two key ingredients.
Zacks ESP: The Earnings ESP for Southwest Airlines is +1.47% with the Most Accurate estimate exceeding the Zacks Consensus Estimate of 68 cents per share by a penny. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Southwest Airlines carries a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates.
The combination of Southwest Airlines' Zacks Rank #2 and a positive ESP makes us reasonably confident of an earnings beat.
Conversely, the Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Southwest Airlines Co. Price and EPS Surprise
Southwest Airlines Co. Price and EPS Surprise | Southwest Airlines Co. Quote
What is Driving the Better-than-Expected Earnings?
The carrier has a decent track record with respect to earnings per share. Southwest Airlines missed the Zacks Consensus Estimate in just one of the last four quarters. The average beat is 2%.
Southwest Airlines recently unveiled an improved guidance for operating revenue per available seat miles (RASM) for the fourth quarter of 2016. RASM is now expected to decline in the range of 3% to 4% from the fourth quarter of 2015 compared with the earlier guidance of a decline in the range of 4% to 5%. The improvement in outlook was primarily driven by better close-in yields. We expect Southwest Airlines to come out with a further improved view on unit revenues for the first quarter, just as Delta Air Lines DAL did on Jan 12.
We are also positive on the company's deal with Global Eagle Entertainment, inked in the third quarter. The commencement of services to the Cuban capital of Havana - its 100th destination, is also a positive.
Moreover, we are impressed by Southwest Airlines' efforts to reward its shareholders. During the third quarter of 2016, the company returned $312 million to shareholders through buybacks and dividend payments.
Though we are positive on the company's recent deals with various labor groups ratified in the fourth quarter, labor costs should spike in the quarter due to them. Southwest Airlines expects cost per available seat mile (CASM) - excluding special items and profit sharing - to increase in the band of 4-5% in the final quarter of 2016, which is much more than the 2.6% increase witnessed in the third quarter.
Stocks to Consider
Investors interested in the airline space may consider the following stocks as our model shows they possess the right combination of elements to post an earnings beat this quarter.
American Airlines GroupAAL has an Earnings ESP of +1.12% and a Zacks Rank #2. The company, which will release its fourth-quarter results on Jan 27, has an impressive history with respect to earnings per share. The company beat the Zacks Consensus Estimate in each of the last four quarters with an average positive surprise of 20.48%. You can see the complete list of today's Zacks #1 Rank stocks here.
JetBlue Airways Corp.JBLU has a Zacks Rank #3 and an Earnings ESP of +4.17%. The company is scheduled to report fourth-quarter results on Jan 26. The company beat the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 6.49%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks - absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
JetBlue Airways Corp. (JBLU): Free Stock Analysis Report
Delta Air Lines Inc. (DAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines GroupAAL has an Earnings ESP of +1.12% and a Zacks Rank #2. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corp. (JBLU): Free Stock Analysis Report Delta Air Lines Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. A conservative Zacks Consensus Estimate for the third quarter (88 cents per share, which was 4.34% lower than the year-ago figure) also contributed to the earnings beat.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corp. (JBLU): Free Stock Analysis Report Delta Air Lines Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL has an Earnings ESP of +1.12% and a Zacks Rank #2. Southwest Airlines Co. Price and EPS Surprise Southwest Airlines Co. Price and EPS Surprise | Southwest Airlines Co. Quote What is Driving the Better-than-Expected Earnings?
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corp. (JBLU): Free Stock Analysis Report Delta Air Lines Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL has an Earnings ESP of +1.12% and a Zacks Rank #2. Zacks ESP: The Earnings ESP for Southwest Airlines is +1.47% with the Most Accurate estimate exceeding the Zacks Consensus Estimate of 68 cents per share by a penny.
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American Airlines GroupAAL has an Earnings ESP of +1.12% and a Zacks Rank #2. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corp. (JBLU): Free Stock Analysis Report Delta Air Lines Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We expect Dallas-based, Southwest Airlines Co.LUV to report better-than-expected earnings in the fourth quarter of 2016.
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c06b836a-fa9e-47e9-9a3b-a3ebe884792a
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7675.0
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2017-01-19 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Delta Air Lines, United Continental Holdings, JetBlue Airways, GOL Linhas and American Airlines Group
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-delta-air-lines-united-continental-holdings-jetblue-0
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For Immediate Release
Chicago, IL - January 19, 2017, 2016 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ), GOL Linhas (NYSE: GOL - Free Report ) and American Airlines Group (NASDAQ: AAL - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday's Analyst Blog:
Airline Stock Roundup: DAL, UAL, JBLU, GOL, AAL
The past week saw the Atlanta, GA-based Delta Air Lines (NYSE: DAL - Free Report ) kick-starting the fourth-quarter earnings season for the airline space. While the company's earnings were in line with estimates, it posted better-than-expected revenues in the quarter. Moreover, both earnings and revenues declined on a year-over-year basis.
Chicago-based United Continental Holdings (NYSE: UAL - Free Report ), on the other hand, outperformed with respect to the bottom line. However, the carrier saw its earnings deteriorating significantly on a year-over-year basis due higher costs.
On the non-earnings front, JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ) and GOL Linhas (NYSE: GOL - Free Report ) disclosed their respective traffic numbers for December.
Transportation - Airline Industry 5YR % Return
(Read the last Airline Stock Roundup for Jan 11, 2017 ).
Recap of the Past Week's Most Important Stories
1. Delta's fourth-quarter earnings (excluding special items) of 82 cents per share met the Zacks Consensus Estimate. The bottom line, however, declined over 30% year over year. Operating revenues of $9,458 million beat the Zacks Consensus Estimate by 1.1%. Revenues declined marginally from the year-ago figure. (Read more: Delta Air Lines Q4 Earnings in Line, Revenues Beat ).
2. United Continental Holdings' fourth-quarter earnings (on an adjusted basis) of $1.78 per share beat the Zacks Consensus Estimate by 13 cents. The bottom line, however, plunged 29.9% year over year due to higher costs. Operating revenues of $9,052 million in the fourth quarter were just short of the Zacks Consensus Estimate of $9,059.4 million. Revenues increased marginally on a year-over-year basis.
Consolidated passenger revenue per available seat mile (PRASM or unit revenues) declined 1.6% year over year to 12.41 cents. Yield on a consolidated basis dipped 1.2% from the fourth quarter of 2015, while passenger revenues increased marginally to $7,761 million. Total operating expenses, excluding special items, grew 3.2% year over year to $8.1 billion. Consolidated unit cost or cost per available seat mile (CASM) - excluding fuel, third-party business expenses and profit sharing - increased 4.1% year over year, primarily due to the labor deals ratified.
United Continental expects unit revenues to remain almost flat in the first quarter of 2017. Capacity for 2017 was also projected to expand in the range of 1-2%. The company expects pre-tax margin (adjusted) in the range of 0.5-2.5% in the first quarter of 2017. Unit costs in the first quarter are projected to increase in the band of 4.5% to 5.5% due to higher in labor costs.
3. American Airlines Group (NASDAQ: AAL - Free Report ) came out with an improved view on total revenue per available seat mile (TRASM) for the fourth quarter (detailed results will be out on Jan 27). The carrier now expects the metric to be in the range of flat to up 2% (on a year-over-year basis) in the fourth quarter. The view represents a marked improvement from the guidance issued last month, when it expected the metric in the band of a decline of 1% to an increase of 1%. The improved view was due to "improving yields" (Read more: Will American Airlines Return to Unit Revenue Growth in Q4? ).
4. JetBlue's traffic update for December reflected a significant increase in the metric. Revenue passenger miles (RPMs) - a measure of traffic - climbed 4.5% year over year to 4 billion. Average seat miles (ASMs) - a measure of capacity - grew 3.1% to 4.7 billion in Dec 2016. Load factor (percentage of seats filled by passengers) expanded 110 basis points (bps) to 84.1% in the month as traffic growth outpaced capacity expansion. Revenue per available seat mile for the month decreased approximately 1.5%.
5. GOL Linhas' December traffic - measured in revenue passenger kilometers (RPK) - was 3.4 billion, down 3.7% from a year ago. Also, consolidated capacity (or available seat kilometers/ASKs) was down 5.7% on a year-over-year basis to 4.3 billion. The downside can be attributed to a 8.9% decline in international capacity. Load factor expanded 160 bps to 79% in Dec 2016 as traffic contraction was less than capacity decline.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on DAL - FREE
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.
This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines Inc. (DAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
United Continental Holdings Inc. (UAL): Free Stock Analysis Report
Gol Linhas Aereas Inteligentes SA (GOL): Free Stock Analysis Report
JetBlue Airways Corp. (JBLU): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (NASDAQ: AAL - Free Report ) came out with an improved view on total revenue per available seat mile (TRASM) for the fourth quarter (detailed results will be out on Jan 27). Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ), GOL Linhas (NYSE: GOL - Free Report ) and American Airlines Group (NASDAQ: AAL - Free Report ). Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup: DAL, UAL, JBLU, GOL, AAL The past week saw the Atlanta, GA-based Delta Air Lines (NYSE: DAL - Free Report ) kick-starting the fourth-quarter earnings season for the airline space.
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Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ), GOL Linhas (NYSE: GOL - Free Report ) and American Airlines Group (NASDAQ: AAL - Free Report ). Click to get this free report Delta Air Lines Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings Inc. (UAL): Free Stock Analysis Report Gol Linhas Aereas Inteligentes SA (GOL): Free Stock Analysis Report JetBlue Airways Corp. (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup: DAL, UAL, JBLU, GOL, AAL The past week saw the Atlanta, GA-based Delta Air Lines (NYSE: DAL - Free Report ) kick-starting the fourth-quarter earnings season for the airline space.
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Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ), GOL Linhas (NYSE: GOL - Free Report ) and American Airlines Group (NASDAQ: AAL - Free Report ). Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on GOL - FREE Get the full Report on JBLU - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Delta Air Lines Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report United Continental Holdings Inc. (UAL): Free Stock Analysis Report Gol Linhas Aereas Inteligentes SA (GOL): Free Stock Analysis Report JetBlue Airways Corp. (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here.
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American Airlines Group (NASDAQ: AAL - Free Report ) came out with an improved view on total revenue per available seat mile (TRASM) for the fourth quarter (detailed results will be out on Jan 27). Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL - Free Report ), United Continental Holdings (NYSE: UAL - Free Report ), JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ), GOL Linhas (NYSE: GOL - Free Report ) and American Airlines Group (NASDAQ: AAL - Free Report ). Here are highlights from Wednesday's Analyst Blog: Airline Stock Roundup: DAL, UAL, JBLU, GOL, AAL The past week saw the Atlanta, GA-based Delta Air Lines (NYSE: DAL - Free Report ) kick-starting the fourth-quarter earnings season for the airline space.
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7c6f3024-96b9-400b-8c2e-bad6736f69da
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7676.0
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2017-01-19 00:00:00 UTC
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How Did American Airlines Perform Operationally In December?
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AAL
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https://www.nasdaq.com/articles/how-did-american-airlines-perform-operationally-december-2017-01-19
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Through the year, American Airlines has grown its capacity in small amounts as opposed to its peers. The last quarter of 2016 was no different. The legacy carrier's capacity in December was up slightly at 0.5%, causing the year to date capacity to grow by approximately 1.7%. This is in line with the company's full year capacity growth guidance. Further, the company emphasized that it will continue to maintain capacity discipline in FY 2017, such that the growth is limited to a percentage point. This is likely an effort to control the negative headwinds its unit revenues are suffering from, especially in the Pacific and Atlantic, and manage the excess capacity that has been built into the system. The 100 bps decline in load factor in December and 130 bps decline seen in the full year 2016, is indicative of this excess capacity.
In terms of unit revenues, American has done a spectacular job at arresting the fall in the metric. It may become the first airline to report positive unit revenues for the fourth quarter. The carrier has revised its guidance for the final quarter of the year from a decline of (1%)-1% to a likely increase in the range of 0%-2%. This is attributable to the capacity discipline the company has been practicing on international routes and the improvement being seen in yields, especially Latin America.
However, the revenue passenger miles and the number of passengers boarded continued to decline in the month. This doesn't bode well for the airline, and may impact its top line negatively in its upcoming quarterly results. Further, the management said that it expects its pre-tax margin for the fourth quarter to be in the 7%-9% range, due to higher operating costs and tax expense.
Have more questions about American Airlines ( AAL )? See the following links:
What Does The Future Look Like At American Airlines?
What Could Be The Potential Impact Of Multi-Fold Increase In Passenger Demand On Airlines?
How Did American Airlines Perform Operationally In October?
American Airlines Q3'16 Earnings Review: Unit Revenues Improve, But Costs Increase
American Airlines Q3'16 Earnings Preview: Reduction In Capacity To Partially Offset Lower Unit Revenues
Why Are Airline Manufacturers Witnessing A Slowdown In Commercial Orders?
Air Traffic Under Closed Economic Policies Due To Hostile Situations: Downside Scenario
Air Traffic Under Liberal Economic Policies: Upside Scenario
How Will American Airlines Benefit From Its New Fleet Plan?
What Are The Factors Behind Soaring Air Travel Growth?
How Important Will American's International Operations Be In 2020?
How Will American Airlines' Equity Value Move, If Crude Oil Prices Rebound To $100 Per Barrel By 2018?
Why Are American Airlines' Domestic Operations More Valuable Than Its International Operations?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for American Airlines
View Interactive Institutional Research (Powered by Trefis):
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Have more questions about American Airlines ( AAL )? This is likely an effort to control the negative headwinds its unit revenues are suffering from, especially in the Pacific and Atlantic, and manage the excess capacity that has been built into the system. Further, the management said that it expects its pre-tax margin for the fourth quarter to be in the 7%-9% range, due to higher operating costs and tax expense.
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Have more questions about American Airlines ( AAL )? This is in line with the company's full year capacity growth guidance. American Airlines Q3'16 Earnings Review: Unit Revenues Improve, But Costs Increase American Airlines Q3'16 Earnings Preview: Reduction In Capacity To Partially Offset Lower Unit Revenues Why Are Airline Manufacturers Witnessing A Slowdown In Commercial Orders?
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Have more questions about American Airlines ( AAL )? Through the year, American Airlines has grown its capacity in small amounts as opposed to its peers. American Airlines Q3'16 Earnings Review: Unit Revenues Improve, But Costs Increase American Airlines Q3'16 Earnings Preview: Reduction In Capacity To Partially Offset Lower Unit Revenues Why Are Airline Manufacturers Witnessing A Slowdown In Commercial Orders?
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Have more questions about American Airlines ( AAL )? This is in line with the company's full year capacity growth guidance. It may become the first airline to report positive unit revenues for the fourth quarter.
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7b625876-3489-47d4-96a8-63043d94b51a
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7677.0
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2017-01-18 00:00:00 UTC
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Spirit Airlines' Investor Update Is Better Than It Looks
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AAL
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https://www.nasdaq.com/articles/spirit-airlines-investor-update-better-it-looks-2017-01-18
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nan
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In the past three months, investors have flocked back to Spirit Airlines (NASDAQ: SAVE) stock. To start, the company reported fairly good Q3 earnings results in late October. Spirit Airlines shares rose even further after Donald Trump won the U.S. presidential election. Many investors expect Trump's economic policies to boost GDP growth and air travel demand.
In total, Spirit Airlines shares soared 35% between mid-October and mid-December. However, the stock started to lose momentum a few weeks ago. It fell further on Tuesday after Spirit released an updated fourth-quarter forecast that left many investors disappointed.
Spirit Airlines Stock Performance, data by YCharts .
It's true that unit revenue declined again at Spirit Airlines last quarter, whereas American Airlines (NASDAQ: AAL) got back to the flat line, with the other legacy carriers close behind. Nevertheless, Spirit's guidance update was better than it may have appeared.
Unit revenue is on the way to recovery
On Tuesday, Spirit Airlines estimated that its revenue per available seat mile (RASM) fell about 3.6% year over year last quarter. This is near the midpoint of the company's earlier guidance that RASM would decline 3%-4.5% in Q4. It's also substantially better than Spirit Airlines' 7% decrease in RASM for the third quarter.
Still, based on the sell-off in Spirit Airlines stock, it would appear that investors were hoping for more. Indeed, American Airlines raised its unit revenue guidance several times over the past few months. American originally forecast that RASM would decline 1%-3% in Q4, but it now expects RASM to be roughly flat year over year (give or take 1%).
American Airlines may have returned to unit revenue growth last quarter. Image source: American Airlines.
However, there's no reason to worry that Spirit Airlines is somehow missing out on the industry's unit revenue recovery.
American Airlines and its fellow legacy carriers benefited beginning in November from an improvement in fare levels for the last-minute tickets typically booked by business travelers. By contrast, Spirit Airlines doesn't carry much business traffic. Leisure tickets tend to be bought further in advance, so unit revenue improvements are slower to materialize.
Additionally, Spirit Airlines launched more than a dozen new routes during Q4, with most of those starting in late October and November. These new routes are part of the strategy shift implemented by Spirit's new management team. They should contribute positively to Spirit's results during Q1. However, these routes were still early in the process of ramping up last quarter, negatively impacting unit revenue.
Costs come in below projections again
On the bright side, Spirit Airlines' costs are set to come in below projections. First, the company now expects its non-fuel cost per available seat mile for Q4 to be 5.45-5.50 cents. That would be up 5.8%-6.8% year over year, compared to Spirit's original forecast of an 8% increase.
Second, fuel costs will be lower than Spirit Airlines had anticipated. The company paid $1.64 a gallon for jet fuel last quarter, whereas it had originally expected its economic fuel cost to reach $1.70 a gallon. Additionally, Spirit's fuel efficiency was about 1.2% better than expected during Q4.
Spirit Airlines is on track to beat its original unit cost forecast for Q4. Image source: Spirit Airlines.
With unit revenue roughly in line with the company's guidance and unit costs set to come in lower than expected, Spirit Airlines has a good chance to beat analysts' average EPS estimate of $0.68 when it reports earnings next month.
Investors want unit revenue growth -- and they will get it
Thus, the recent investor update suggests that Spirit's Q4 earnings could come in higher than analysts had expected. Yet all that airline investors seem to care about right now is unit revenue growth.
Spirit Airlines didn't see a sharp improvement in RASM during the quarter as American Airlines did, simply because it has a different business model and different customer focus. It will take a little longer for the recent improvement in demand to filter through to Spirit's results.
Nevertheless, Spirit remains on track for a solid revenue recovery in 2017. It will be helped along by very easy year-over-year RASM comparisons, especially in the first half of the year. As unit revenue recovers, Spirit Airlines stock could begin marching higher once again.
10 stocks we like better than Spirit Airlines
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Adam Levine-Weinberg owns shares of Spirit Airlines. The Motley Fool recommends Spirit Airlines. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's true that unit revenue declined again at Spirit Airlines last quarter, whereas American Airlines (NASDAQ: AAL) got back to the flat line, with the other legacy carriers close behind. In the past three months, investors have flocked back to Spirit Airlines (NASDAQ: SAVE) stock. Many investors expect Trump's economic policies to boost GDP growth and air travel demand.
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It's true that unit revenue declined again at Spirit Airlines last quarter, whereas American Airlines (NASDAQ: AAL) got back to the flat line, with the other legacy carriers close behind. Unit revenue is on the way to recovery On Tuesday, Spirit Airlines estimated that its revenue per available seat mile (RASM) fell about 3.6% year over year last quarter. With unit revenue roughly in line with the company's guidance and unit costs set to come in lower than expected, Spirit Airlines has a good chance to beat analysts' average EPS estimate of $0.68 when it reports earnings next month.
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It's true that unit revenue declined again at Spirit Airlines last quarter, whereas American Airlines (NASDAQ: AAL) got back to the flat line, with the other legacy carriers close behind. Unit revenue is on the way to recovery On Tuesday, Spirit Airlines estimated that its revenue per available seat mile (RASM) fell about 3.6% year over year last quarter. With unit revenue roughly in line with the company's guidance and unit costs set to come in lower than expected, Spirit Airlines has a good chance to beat analysts' average EPS estimate of $0.68 when it reports earnings next month.
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It's true that unit revenue declined again at Spirit Airlines last quarter, whereas American Airlines (NASDAQ: AAL) got back to the flat line, with the other legacy carriers close behind. Unit revenue is on the way to recovery On Tuesday, Spirit Airlines estimated that its revenue per available seat mile (RASM) fell about 3.6% year over year last quarter. American Airlines may have returned to unit revenue growth last quarter.
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35248a28-cc48-4199-a6d6-f25582f12851
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7678.0
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2017-01-18 00:00:00 UTC
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Top Ranked Momentum Stocks to Buy for January 18th
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AAL
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https://www.nasdaq.com/articles/top-ranked-momentum-stocks-to-buy-for-january-18th-2017-01-18
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Here are four stocks with buy rank and strong momentum characteristics for investors to consider today, January 18 th :
American Airlines Group Inc. (AAL): This airline company has a Zacks Rank #2 (Buy) and witnessedthe Zacks Consensus Estimate for its current year earnings rising 3.8% over the last 60 days.
American Airlines Group Inc. Price and Consensus
American Airlines Group Inc. Price and Consensus | American Airlines Group Inc. Quote
American Airlines Group's shares gained 21.2% over the last three months higher than S&P 500's gains of 6.7%. The company possesses a Momentum Score of A.
American Airlines Group Inc. Price
American Airlines Group Inc. Price | American Airlines Group Inc. Quote
Denbury Resources Inc. (DNR): This oil and gas company has a Zacks Rank #1 (Strong Buy) and witnessed the Zacks Consensus Estimate for its current year earnings jumping 33.3% over the last 60 days.
Denbury Resources Inc. Price and Consensus
Denbury Resources Inc. Price and Consensus | Denbury Resources Inc. Quote
Denbury Resources' shares gained 34.7% over the last three months. The company possesses a Momentum Score of A.
Denbury Resources Inc. Price
Denbury Resources Inc. Price | Denbury Resources Inc. Quote
Bank of the Ozarks, Inc. (OZRK): This financial services company has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.7% over the last 60 days.
Bank of the Ozarks Inc. Price and Consensus
Bank of the Ozarks Inc. Price and Consensus | Bank of the Ozarks Inc. Quote
Bank of the Ozarks' shares gained 40.5% over the last three months. The company possesses a Momentum Score of A.
Bank of the Ozarks Inc. Price
Bank of the Ozarks Inc. Price | Bank of the Ozarks Inc. Quote
Schnitzer Steel Industries, Inc. (SCHN): This steel company has a Zacks Rank #2 (Buy) and witnessed the Zacks Consensus Estimate for its current year earnings advancing 10.2% over the last 60 days.
Schnitzer Steel Industries Inc. Price and Consensus
Schnitzer Steel Industries Inc. Price and Consensus | Schnitzer Steel Industries Inc. Quote
Schnitzer Steel Industries' shares gained 8.2% over the last three months. The company possesses a Momentum Score of A.
Schnitzer Steel Industries Inc. Price
Schnitzer Steel Industries Inc. Price | Schnitzer Steel Industries Inc. Quote
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here
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Schnitzer Steel Industries Inc. (SCHN): Free Stock Analysis Report
Bank of the Ozarks Inc. (OZRK): Free Stock Analysis Report
Denbury Resources Inc. (DNR): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are four stocks with buy rank and strong momentum characteristics for investors to consider today, January 18 th : American Airlines Group Inc. (AAL): This airline company has a Zacks Rank #2 (Buy) and witnessedthe Zacks Consensus Estimate for its current year earnings rising 3.8% over the last 60 days. Click to get this free report Schnitzer Steel Industries Inc. (SCHN): Free Stock Analysis Report Bank of the Ozarks Inc. (OZRK): Free Stock Analysis Report Denbury Resources Inc. (DNR): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Momentum Score of A. Schnitzer Steel Industries Inc. Price Schnitzer Steel Industries Inc. Price | Schnitzer Steel Industries Inc. Quote See the full list of top ranked stocks here Learn more about the Momentum score and how it is calculated here Now See All Our Private Trades While today's Zacks Rank #1 new additions are being shared with the public, other trades are hidden from everyone but selected members.
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Click to get this free report Schnitzer Steel Industries Inc. (SCHN): Free Stock Analysis Report Bank of the Ozarks Inc. (OZRK): Free Stock Analysis Report Denbury Resources Inc. (DNR): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Here are four stocks with buy rank and strong momentum characteristics for investors to consider today, January 18 th : American Airlines Group Inc. (AAL): This airline company has a Zacks Rank #2 (Buy) and witnessedthe Zacks Consensus Estimate for its current year earnings rising 3.8% over the last 60 days. American Airlines Group Inc. Price and Consensus American Airlines Group Inc. Price and Consensus | American Airlines Group Inc. Quote American Airlines Group's shares gained 21.2% over the last three months higher than S&P 500's gains of 6.7%.
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Here are four stocks with buy rank and strong momentum characteristics for investors to consider today, January 18 th : American Airlines Group Inc. (AAL): This airline company has a Zacks Rank #2 (Buy) and witnessedthe Zacks Consensus Estimate for its current year earnings rising 3.8% over the last 60 days. Click to get this free report Schnitzer Steel Industries Inc. (SCHN): Free Stock Analysis Report Bank of the Ozarks Inc. (OZRK): Free Stock Analysis Report Denbury Resources Inc. (DNR): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Momentum Score of A. American Airlines Group Inc. Price American Airlines Group Inc. Price | American Airlines Group Inc. Quote Denbury Resources Inc. (DNR): This oil and gas company has a Zacks Rank #1 (Strong Buy) and witnessed the Zacks Consensus Estimate for its current year earnings jumping 33.3% over the last 60 days.
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Here are four stocks with buy rank and strong momentum characteristics for investors to consider today, January 18 th : American Airlines Group Inc. (AAL): This airline company has a Zacks Rank #2 (Buy) and witnessedthe Zacks Consensus Estimate for its current year earnings rising 3.8% over the last 60 days. Click to get this free report Schnitzer Steel Industries Inc. (SCHN): Free Stock Analysis Report Bank of the Ozarks Inc. (OZRK): Free Stock Analysis Report Denbury Resources Inc. (DNR): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company possesses a Momentum Score of A. Schnitzer Steel Industries Inc. Price Schnitzer Steel Industries Inc. Price | Schnitzer Steel Industries Inc. Quote See the full list of top ranked stocks here Learn more about the Momentum score and how it is calculated here Now See All Our Private Trades While today's Zacks Rank #1 new additions are being shared with the public, other trades are hidden from everyone but selected members.
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e8e2b9a3-ccdb-4b4c-b748-ba8cba12d550
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7679.0
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2017-01-18 00:00:00 UTC
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United Continental (UAL) Declines Despite Q4 Earnings Beat
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AAL
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https://www.nasdaq.com/articles/united-continental-ual-declines-despite-q4-earnings-beat-2017-01-18
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nan
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United Continental Holdings Inc.'sUAL fourth-quarter 2016 earnings (on an adjusted basis) of $1.78 per share beat the Zacks Consensus Estimate by 13 cents. The bottom line, however, plunged 29.9% year over year due to higher costs.
FindTheCompany | Graphiq
In the fourth quarter, the company paid $487 million as income tax, a massive increase from the $82 million paid in the year-ago quarter. This severely affected the bottom line. Naturally, investors were disappointed by the year-over-year decline in earnings. Consequently, the stock lost value in after-market trading on Jan 17.
Operating revenues of $9,052 million in the fourth quarter were just short of the Zacks Consensus Estimate of $9,059.4 million. Revenues increased marginally on a year-over-year basis.
Operating Results
Consolidated passenger revenue per available seat mile (PRASM or unit revenues) declined 1.6% year over year to 12.41 cents. Yield on a consolidated basis declined 1.2% from the fourth quarter of 2015, while passenger revenues increased marginally to $7,761 million. Cargo revenues increased 8.2% and other revenues dipped 3.3% in the same time frame. During the reported quarter, airline traffic measured in revenue passenger miles, which improved 1.6% year over year on a consolidated basis. Capacity (or available seat miles) grew 2% and led to a 30 basis point decline in load factor (percentage of seats filled with passengers) to 82.4%, as capacity expansion outweighed traffic growth. Average fuel price (on a consolidated basis) per gallon, excluding hedge losses increased 5.3% year over year to $1.6.
Total operating expenses, excluding special items grew 3.2% year over year to $8.1 billion. Consolidated unit cost or cost per available seat mile (CASM) - excluding fuel, third-party business expenses and profit sharing - increased 4.1% year over year, primarily due to the labor deals ratified.
United Continental Holdings, Inc. Price, Consensus and EPS Surprise
United Continental Holdings, Inc. Price, Consensus and EPS Surprise | United Continental Holdings, Inc. Quote
Liquidity
United Continental exited the quarter with $5.8 billion in unrestricted liquidity, which included $1.35 billion of undrawn commitments under its revolving credit facility. The carrier generated $658 million in operating cash flow in the quarter under review. Free cash flow at the end of the quarter was $420 million. The metric at the end of 2016 was $2.2 billion.
Guidance
United Continental expects consolidated PRASM in the band of a decrease of 1% to an increase of 1% in the first quarter of 2017. We note that United Continental is not the only company to have come out with bullish unit revenue guidance. Its peers like Delta Air Lines DAL and American Airlines Group AAL are also bullish on the metric, as they strive to return to unit revenue growth.
Consolidated capacity is projected to increase in the range of 1-2% in the first quarter of 2017. Capacity for 2017 was also projected to expand in the range of 1-2%. The company expects pre-tax margin (adjusted) in the range of 0.5-2.5% in the first quarter of 2017. Unit costs in the first quarter are projected to increase in the band of 4.5% to 5.5% due to higher labor costs.
Annual Results
For full-year 2016, the company's earnings came in at $8.65 per share while revenues were $36.6 billion. The Zacks Consensus Estimate was of earnings of $8.55 per share on revenues of $36.6 billion.
For full-year 2016, the carrier bought back $2.6 billion of its common stock. As of Dec. 31, 2016, the company had $1.8 billion remaining under its current buyback program. In 2016, the carrier returned $628 million to employees via profit sharing.
Other Important Releases Coming Up
Investors in the airline space will now keenly await the fourth-quarter earnings reports of Hawaiian Holdings Inc. HA (on Jan 24), JetBlue Airways Corp. (on Jan 26) and American Airlines Group (on Jan 27).
Zacks Rank
United Continental currently carries a Zacks Rank # 3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here .
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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Delta Air Lines Inc. (DAL): Free Stock Analysis Report
Hawaiian Holdings Inc. (HA): Free Stock Analysis Report
United Continental Holdings Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its peers like Delta Air Lines DAL and American Airlines Group AAL are also bullish on the metric, as they strive to return to unit revenue growth. Click to get this free report Delta Air Lines Inc. (DAL): Free Stock Analysis Report Hawaiian Holdings Inc. (HA): Free Stock Analysis Report United Continental Holdings Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental Holdings Inc.'sUAL fourth-quarter 2016 earnings (on an adjusted basis) of $1.78 per share beat the Zacks Consensus Estimate by 13 cents.
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Click to get this free report Delta Air Lines Inc. (DAL): Free Stock Analysis Report Hawaiian Holdings Inc. (HA): Free Stock Analysis Report United Continental Holdings Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Its peers like Delta Air Lines DAL and American Airlines Group AAL are also bullish on the metric, as they strive to return to unit revenue growth. Operating Results Consolidated passenger revenue per available seat mile (PRASM or unit revenues) declined 1.6% year over year to 12.41 cents.
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Click to get this free report Delta Air Lines Inc. (DAL): Free Stock Analysis Report Hawaiian Holdings Inc. (HA): Free Stock Analysis Report United Continental Holdings Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Its peers like Delta Air Lines DAL and American Airlines Group AAL are also bullish on the metric, as they strive to return to unit revenue growth. Operating Results Consolidated passenger revenue per available seat mile (PRASM or unit revenues) declined 1.6% year over year to 12.41 cents.
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Its peers like Delta Air Lines DAL and American Airlines Group AAL are also bullish on the metric, as they strive to return to unit revenue growth. Click to get this free report Delta Air Lines Inc. (DAL): Free Stock Analysis Report Hawaiian Holdings Inc. (HA): Free Stock Analysis Report United Continental Holdings Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Operating Results Consolidated passenger revenue per available seat mile (PRASM or unit revenues) declined 1.6% year over year to 12.41 cents.
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28a58158-8576-4e47-9ee6-e045de36ef8a
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7680.0
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2017-01-18 00:00:00 UTC
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United Continental Witnesses Significant Improvement In Q4'16, Outlook For Q1'17 Bleak
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AAL
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https://www.nasdaq.com/articles/united-continental-witnesses-significant-improvement-q416-outlook-q117-bleak-2017-01-18
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nan
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United Continental ( UAL ) announced its fourth quarter and full year 2016 results on the 17th of January 2017, beating the consensus for both revenues and earnings. As expected, the improvement in unit revenues and restriction in capacity in the fourth quarter helped support the top line, but higher operating expenses and tax expenditure continued to weigh down the earnings.
As stated before, United's revenues showcased marginal improvement on the back of a lower than expected decline in unit revenues, and the 8.2% y-o-y growth in revenues from cargo. The main reason behind the lower than expected decline in unit revenues was the robust performance by the carrier domestically due to stronger close-in bookings and yields in November and December, and in Latin America. However, the Atlantic and the Pacific regions continued to be under pressure. Furthermore, the company saw a modest decline in occupancy rate at 50 bps, indicating that the company is on the right path as far as capacity management is concerned.
In terms of costs excluding fuel and profit sharing, the company expended approximately 4% more in the fourth quarter as opposed to the same period year ago. The higher costs are attributable to the recently ratified labor contracts at United (+5.9%), and the expenditure on aircraft maintenance and repairs (+12.3%). As a result, the company's operating margins suffered a slight decline at -90 bps, to 11.1% in the quarter. Having said that, United's pre-tax margins were hit extremely hard due to the multifold increase in taxes over the comparable period. In Q4'15 , the company had booked a consequential tax benefit due to the release of its deferred tax asset valuation allowance, resulting in a low tax expense of $82 million. However, in Q4'16, the company normalized its tax expenditure and had to incur an additional $180 million in taxes, relating to losses on fuel hedging.
Apart from this, United's free cash flow in Q4'16 was negative at $420 million. This is a result of higher adjusted capital expenditure, and lower cash flow from operations due to the significant amount paid out in taxes. As explained before, the company accrued tax benefits in Q4'15, but now that it has begun paying out taxes, tax expenses have increased. However, the full year free cash flow was almost $2.2 billion, down 11% y-o-y.
Going forward, the company expects to continue restricting its capacity at 1%-2% in Q1'17 and FY 2017, in order to support PRASM and propel revenues upwards. Moreover, despite the first quarter being a tough one for United, the company expects its unit revenues to be in the -1% to +1% range. However, the costs are expected to grow at a roughly 5% rate due to the affect of new labor contracts and higher oil prices . Consequently, the pretax margins delivered by the company are expected to be approximately 0.5%-2.5%. As United implements the comprehensive growth plan laid out by its CEO Oscar Munoz in 2017, we can expect additional benefit to accrue to its earnings.
Have more questions about United Continental ( UAL )? See the links below:
How Will United Continental's Initiatives To Promote Operational Efficiency Contribute To Its Earnings?
How Will United Continental's Cost Savings Initiatives Add To Earnings Growth?
How Did United Continental Perform Operationally In November?
How Will United Continental Benefit From Segmentation And Fee Bundling?
How Does United Continental Plan To Optimize Its Network Potential?How Will United Continental's Re-fleeting Initiatives Contribute To Its Earnings?
United Continental Q3'16 Earnings Review: Unit Revenues Remain Under The Pump
United Continental Q3'16 Earnings Preview: Capacity Cuts To Partially Offset The Decline In PRASM
How Is United Continental Driving Cost Efficiency?
What Has Led To A 15% Fall In United's Stock Price Since The Beginning Of The Year?
Is A Turnaround In The Cards For United Continental?
How Will United's Equity Value Be Impacted If The Crude Oil Prices Rebound To $100 Per Barrel By 2018?
How Will United's Equity Value Be Impacted If The Crude Oil Prices Average At $50 Per Barrel In 2018?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for United Continental
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As expected, the improvement in unit revenues and restriction in capacity in the fourth quarter helped support the top line, but higher operating expenses and tax expenditure continued to weigh down the earnings. The main reason behind the lower than expected decline in unit revenues was the robust performance by the carrier domestically due to stronger close-in bookings and yields in November and December, and in Latin America. For precise figures, please refer to our complete analysis for United Continental View Interactive Institutional Research (Powered by Trefis): Global Large Cap | U.S.
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United Continental ( UAL ) announced its fourth quarter and full year 2016 results on the 17th of January 2017, beating the consensus for both revenues and earnings. As expected, the improvement in unit revenues and restriction in capacity in the fourth quarter helped support the top line, but higher operating expenses and tax expenditure continued to weigh down the earnings. Mid & Small Cap | European Large & Mid Cap More Trefis Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As stated before, United's revenues showcased marginal improvement on the back of a lower than expected decline in unit revenues, and the 8.2% y-o-y growth in revenues from cargo. Moreover, despite the first quarter being a tough one for United, the company expects its unit revenues to be in the -1% to +1% range. United Continental Q3'16 Earnings Review: Unit Revenues Remain Under The Pump United Continental Q3'16 Earnings Preview: Capacity Cuts To Partially Offset The Decline In PRASM How Is United Continental Driving Cost Efficiency?
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As a result, the company's operating margins suffered a slight decline at -90 bps, to 11.1% in the quarter. This is a result of higher adjusted capital expenditure, and lower cash flow from operations due to the significant amount paid out in taxes. United Continental Q3'16 Earnings Review: Unit Revenues Remain Under The Pump United Continental Q3'16 Earnings Preview: Capacity Cuts To Partially Offset The Decline In PRASM How Is United Continental Driving Cost Efficiency?
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7681.0
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2017-01-17 00:00:00 UTC
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How Did Alaska Air Perform Operationally In December?
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AAL
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https://www.nasdaq.com/articles/how-did-alaska-air-perform-operationally-december-2017-01-17
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In the month of December, Alaska Air ( ALK ) saw all its key metrics improve. Keeping with the company's guidance to increase capacity by 10% in the year, the carrier saw its capacity rise 2.5%, bringing the year to date capacity to 7.8%. Alaska's passenger traffic grew at 4.2% growth, while the occupancy rate rose almost 1.4 percentage points to 85%. For the full year, traffic was up as much as 8.3%.
Furthermore, Alaska Air completed its acquisition of Virgin America on December 14, 2016. In the table below, we discuss Virgin America's operational performance for the month of December. Its capacity grew 11% y-o-y, bringing the full year capacity growth to 14.8% y-o-y. Consequently, its traffic also saw double digit growth of 16.7% in FY 2016. However, the occupancy rate for December decreased slightly (-140 bps) to 79.2%.
On a consolidated basis, the Air Group's capacity was 5% for the month, and 10.2% for the full year. Traffic growth continued to impress at 5.6% in December and 10.8% in FY 2016. Further, the occupancy rate was also up slightly. However, Alaska's unit revenues are expected to remain in the negative territory for the full year, correcting itself the middle of next year, as macroeconomic conditions all over the world improve, and it starts accruing benefits of its merger with Virgin America.
Have more questions about Alaska Air ( ALK )? See the following links:
What Are Some Of The Latest Developments At Alaska Airlines And How Will They Benefit The Company?
Why Is Alaska Air Betting Big On California?
A Look At Alaska Air's Network Expansion Across The West Coast
Airlines And The Federal Minimum Wage
How Did Alaska Air Perform Operationally In October?
Alaska Air Reports A Solid September Quarter On The Back Of Continued Capacity Expansion
Alaska Air Q3'16 Earnings Preview: Continued Capacity Growth, Higher Unit Costs To Weigh On Earnings
How Did Alaska Air Perform Operationally In September?
Why Has Alaska Air's Stock Price Fallen 20% Since The Beginning Of The Year?
Will The Alaska Air-Virgin America Deal Get Delayed?
Why Are The Air Fares Offered By The U.S. Airlines Falling?
How Did Alaska Air Perform Operationally In August?
What Is The Role Of Passenger Airlines In The Air Cargo Industry?
How Will The Virgin America Deal Impact Alaska Air's Share Repurchase Program?
Will Alaska Air-Virgin America Face Antitrust Issues?
How Will The Virgin America Merger Impact Alaska Air's Cost Of Capital?
How Will Alaska Air's Market Share Change Post The Virgin America Deal?
Why Is Alaska Air Acquiring Virgin America?
How Will Alaska Air Benefit From The Virgin America Deal Operationally?
How Will The Expected Return On The Alaska Air-Virgin America Merger Compare With The Previous Deals In The Sector?
How Will The Virgin America Deal Alter Alaska Air's Capital Structure?
Has Alaska Air Paid A Fair Price For Acquiring Virgin America?
Alaska Air's Earnings Rise On The Back Of Rapid Capacity Growth And Lower Fuel Costs
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Alaska Air Group
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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How Will The Expected Return On The Alaska Air-Virgin America Merger Compare With The Previous Deals In The Sector? Alaska Air's Earnings Rise On The Back Of Rapid Capacity Growth And Lower Fuel Costs Notes: 1) The purpose of these analyses is to help readers focus on a few important things. For precise figures, please refer to our complete analysis for Alaska Air Group View Interactive Institutional Research (Powered by Trefis): Global Large Cap | U.S.
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Its capacity grew 11% y-o-y, bringing the full year capacity growth to 14.8% y-o-y. Alaska Air Reports A Solid September Quarter On The Back Of Continued Capacity Expansion Alaska Air Q3'16 Earnings Preview: Continued Capacity Growth, Higher Unit Costs To Weigh On Earnings How Did Alaska Air Perform Operationally In September? Mid & Small Cap | European Large & Mid Cap More Trefis Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A Look At Alaska Air's Network Expansion Across The West Coast Airlines And The Federal Minimum Wage How Did Alaska Air Perform Operationally In October? Alaska Air Reports A Solid September Quarter On The Back Of Continued Capacity Expansion Alaska Air Q3'16 Earnings Preview: Continued Capacity Growth, Higher Unit Costs To Weigh On Earnings How Did Alaska Air Perform Operationally In September? How Will Alaska Air Benefit From The Virgin America Deal Operationally?
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Alaska's passenger traffic grew at 4.2% growth, while the occupancy rate rose almost 1.4 percentage points to 85%. Furthermore, Alaska Air completed its acquisition of Virgin America on December 14, 2016. How Will Alaska Air Benefit From The Virgin America Deal Operationally?
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1d741e29-f866-4058-93ca-e4a857e9c776
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7682.0
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2017-01-17 00:00:00 UTC
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Notable Tuesday Option Activity: ANGI, AAL, AET
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AAL
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https://www.nasdaq.com/articles/notable-tuesday-option-activity-angi-aal-aet-2017-01-17
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Angie's List Inc. (Symbol: ANGI), where a total of 1,330 contracts have traded so far, representing approximately 133,000 underlying shares. That amounts to about 73.3% of ANGI's average daily trading volume over the past month of 181,530 shares. Especially high volume was seen for the $7.50 strike put option expiring February 17, 2017 , with 1,017 contracts trading so far today, representing approximately 101,700 underlying shares of ANGI. Below is a chart showing ANGI's trailing twelve month trading history, with the $7.50 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) saw options trading volume of 37,141 contracts, representing approximately 3.7 million underlying shares or approximately 69.6% of AAL's average daily trading volume over the past month, of 5.3 million shares. Especially high volume was seen for the $40 strike call option expiring January 20, 2017 , with 6,420 contracts trading so far today, representing approximately 642,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $40 strike highlighted in orange:
And Aetna Inc. (Symbol: AET) options are showing a volume of 15,458 contracts thus far today. That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 62.4% of AET's average daily trading volume over the past month, of 2.5 million shares. Especially high volume was seen for the $115 strike put option expiring April 21, 2017 , with 5,785 contracts trading so far today, representing approximately 578,500 underlying shares of AET. Below is a chart showing AET's trailing twelve month trading history, with the $115 strike highlighted in orange:
For the various different available expirations for ANGI options , AAL options , or AET options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $40 strike call option expiring January 20, 2017 , with 6,420 contracts trading so far today, representing approximately 642,000 underlying shares of AAL. Below is a chart showing ANGI's trailing twelve month trading history, with the $7.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 37,141 contracts, representing approximately 3.7 million underlying shares or approximately 69.6% of AAL's average daily trading volume over the past month, of 5.3 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $40 strike highlighted in orange: And Aetna Inc. (Symbol: AET) options are showing a volume of 15,458 contracts thus far today.
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Below is a chart showing ANGI's trailing twelve month trading history, with the $7.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 37,141 contracts, representing approximately 3.7 million underlying shares or approximately 69.6% of AAL's average daily trading volume over the past month, of 5.3 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $40 strike highlighted in orange: And Aetna Inc. (Symbol: AET) options are showing a volume of 15,458 contracts thus far today. Below is a chart showing AET's trailing twelve month trading history, with the $115 strike highlighted in orange: For the various different available expirations for ANGI options , AAL options , or AET options , visit StockOptionsChannel.com.
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Below is a chart showing ANGI's trailing twelve month trading history, with the $7.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 37,141 contracts, representing approximately 3.7 million underlying shares or approximately 69.6% of AAL's average daily trading volume over the past month, of 5.3 million shares. Below is a chart showing AET's trailing twelve month trading history, with the $115 strike highlighted in orange: For the various different available expirations for ANGI options , AAL options , or AET options , visit StockOptionsChannel.com. Especially high volume was seen for the $40 strike call option expiring January 20, 2017 , with 6,420 contracts trading so far today, representing approximately 642,000 underlying shares of AAL.
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Below is a chart showing ANGI's trailing twelve month trading history, with the $7.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 37,141 contracts, representing approximately 3.7 million underlying shares or approximately 69.6% of AAL's average daily trading volume over the past month, of 5.3 million shares. Especially high volume was seen for the $40 strike call option expiring January 20, 2017 , with 6,420 contracts trading so far today, representing approximately 642,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $40 strike highlighted in orange: And Aetna Inc. (Symbol: AET) options are showing a volume of 15,458 contracts thus far today.
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ccea9b67-93a2-472d-adb4-a3ba5a854666
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7683.0
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2017-01-17 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Wells Fargo, Accenture, Eli Lilly, American Airlines and Domino's Pizza
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-wells-fargo-accenture-eli-lilly-american-airlines-and
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For Immediate Release
Chicago, IL - January 17, 2017, 2016 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Wells Fargo (NYSE: WFC - Free Report ), Accenture (NYSE: ACN - Free Report ), Eli Lilly (NYSE: LLY - Free Report ), American Airlines (NASDAQ: AAL - Free Report ) and Domino's Pizza (NYSE: DPZ - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday's Analyst Blog:
Top Research Reports for Tuesday
Today's Research Daily features new research reports on 16 major stocks, including Wells Fargo (NYSE: WFC - Free Report ), Accenture (NYSE: ACN - Free Report ) and Eli Lilly (NYSE: LLY - Free Report ). We also issued an early take on the Q4 earnings season, which ramps up materially in the coming days. The earnings report is titled: Solid Start to Q4 Earnings Season
Wells Fargo shares have gained 24.3% over the last three months, underperforming the Zacks Major Banks industry which has gained 28.9% over the same period. The bank has yet to fully recover from the scandal even after a $190-million settlement with regulators, but the company's fourth-quarter 2016 earnings outpaced estimates and prior-year quarter's earnings. The new management team is making all the right moves and further downside risks in the stock are low at this stage. But it will likely take a while for clouds to be fully lifted, though continued growth in loans and deposits and expansion moves should support its growth profile (You can read the full research report on Wells Fargo here >> )
Accenture shares have performed in line with the consulting industry over the last one year, gaining 17.8%. The company delivered mixed first-quarter fiscal 2017 results, though revenues and earnings were up on a year-over-year basis. The analyst likes the company's inorganic growth strategy. This has enabled Accenture to broaden its product portfolio and is likely to contribute significantly to its revenues stream. However, increasing competition and an uncertain macroeconomic environment may deter its growth to some extent (You can read the full research report onAccenturehere >> )
Eli Lilly shares were under pressure in 2016 but have recovered this year, gaining 5.2% to outperform other large cap pharma stocks. Estimates have moved up lately ahead of the company's Q4 release. The analyst is encouraged by the fact that Lilly expects to launch 20 new products in a 10 year time-frame ranging from 2014 to 2023 and could launch at least 2 new indications/line extensions on average every year. Moreover, Lilly returned to annual dividend increases in Dec 2016 and has issued a bullish outlook for 2017. (You can read the full research report onEli Lillyhere >> )
Other noteworthy reports we are featuring today include American Airlines (NASDAQ: AAL - Free Report ) and Domino's Pizza (NYSE: DPZ - Free Report ).
Today's Long-Term Buys & Sells
Today you can gain access to the best long-term trades unearthed by Zacks Research. These moves have double and triple-digit profit potential and are rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on WFC - FREE
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Wells Fargo & Company (WFC): Free Stock Analysis Report
Accenture PLC (ACN): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Domino's Pizza Inc (DPZ): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include Wells Fargo (NYSE: WFC - Free Report ), Accenture (NYSE: ACN - Free Report ), Eli Lilly (NYSE: LLY - Free Report ), American Airlines (NASDAQ: AAL - Free Report ) and Domino's Pizza (NYSE: DPZ - Free Report ). (You can read the full research report onEli Lillyhere >> ) Other noteworthy reports we are featuring today include American Airlines (NASDAQ: AAL - Free Report ) and Domino's Pizza (NYSE: DPZ - Free Report ). Get the full Report on WFC - FREE Get the full Report on ACN - FREE Get the full Report on LLY - FREE Get the full Report on AAL - FREE Get the full Report on DPZ - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include Wells Fargo (NYSE: WFC - Free Report ), Accenture (NYSE: ACN - Free Report ), Eli Lilly (NYSE: LLY - Free Report ), American Airlines (NASDAQ: AAL - Free Report ) and Domino's Pizza (NYSE: DPZ - Free Report ). Click to get this free report Wells Fargo & Company (WFC): Free Stock Analysis Report Accenture PLC (ACN): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Domino's Pizza Inc (DPZ): Free Stock Analysis Report To read this article on Zacks.com click here. (You can read the full research report onEli Lillyhere >> ) Other noteworthy reports we are featuring today include American Airlines (NASDAQ: AAL - Free Report ) and Domino's Pizza (NYSE: DPZ - Free Report ).
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Get the full Report on WFC - FREE Get the full Report on ACN - FREE Get the full Report on LLY - FREE Get the full Report on AAL - FREE Get the full Report on DPZ - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Wells Fargo & Company (WFC): Free Stock Analysis Report Accenture PLC (ACN): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Domino's Pizza Inc (DPZ): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Wells Fargo (NYSE: WFC - Free Report ), Accenture (NYSE: ACN - Free Report ), Eli Lilly (NYSE: LLY - Free Report ), American Airlines (NASDAQ: AAL - Free Report ) and Domino's Pizza (NYSE: DPZ - Free Report ).
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Stocks recently featured in the blog include Wells Fargo (NYSE: WFC - Free Report ), Accenture (NYSE: ACN - Free Report ), Eli Lilly (NYSE: LLY - Free Report ), American Airlines (NASDAQ: AAL - Free Report ) and Domino's Pizza (NYSE: DPZ - Free Report ). (You can read the full research report onEli Lillyhere >> ) Other noteworthy reports we are featuring today include American Airlines (NASDAQ: AAL - Free Report ) and Domino's Pizza (NYSE: DPZ - Free Report ). Get the full Report on WFC - FREE Get the full Report on ACN - FREE Get the full Report on LLY - FREE Get the full Report on AAL - FREE Get the full Report on DPZ - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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a6c0e2b8-93a0-4c8a-bc08-e5efb4731b00
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7684.0
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2017-01-17 00:00:00 UTC
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How Did Southwest Perform Operationally In December?
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AAL
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https://www.nasdaq.com/articles/how-did-southwest-perform-operationally-december-2017-01-17
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After a disappointing third quarter, given a -3.4% y-o-y drop in revenues and a -5% decline in unit revenues, Southwest showcased some improvement in its October and November metric. Keeping with the uptrend, the company demonstrated strength in its key metrics in December. It grew its capacity by 4.8% y-o-y in December, one of the highest in the industry. Consequently, the full year capacity is up as much as 5.8%, in line with the company guidance of 5%-6% full year capacity growth. Although the occupancy rate improved slightly (+40 bps) for the full year 2016, it deteriorated for the month of December (-40 bps). In terms of passenger traffic, the growth was 4.2% in December and 6.2% for the full year.
In terms of unit revenue, the company expects the decline to persist, but at a lower rate than previously expected. Southwest has revised its unit revenues guidance for Q4'16 from a decline of 4%-5% to a decline of 3%-4%, attributable to the improvement seen in close in yields around holidays. However, the decline continues to be higher than that seen by legacy carriers, Delta and United, likely due to the lack of capacity restriction by Southwest.
Have more questions about Southwest Airlines ( LUV )? See the links below:
Increasing Costs At Southwest Airlines And What They Mean For The Carrier
How Did Southwest Perform Operationally In October?
Southwest Faces Market Heat As It Reports Disappointing Q3'16 Results; Future Guidance Bleak
Southwest Q3'16 Earnings Preview: Labor Agreement, Rising Oil Prices To Weigh On Earnings
How Did Southwest Airlines Perform Operationally In September?
Will International Expansion Be A Big Part Of Southwest's Future Growth Strategy?
How Did Southwest Airlines Perform Operationally In August?
What Are The Factors That Have Strengthened Southwest's Domestic Presence?
Has Southwest Been Able To Provide Meaningful Returns To Its Investors?
How Has Southwest's Cost Efficiency Improved?
Tracking Southwest's Capital Expenditure: How Has It Trended?
How Has Southwest Utilized Its Cash Flows?
How Will The New Labor Contract Affect Southwest?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Southwest Airlines
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, the decline continues to be higher than that seen by legacy carriers, Delta and United, likely due to the lack of capacity restriction by Southwest. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com 2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Southwest Airlines View Interactive Institutional Research (Powered by Trefis): Global Large Cap | U.S.
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Consequently, the full year capacity is up as much as 5.8%, in line with the company guidance of 5%-6% full year capacity growth. For precise figures, please refer to our complete analysis for Southwest Airlines View Interactive Institutional Research (Powered by Trefis): Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap More Trefis Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After a disappointing third quarter, given a -3.4% y-o-y drop in revenues and a -5% decline in unit revenues, Southwest showcased some improvement in its October and November metric. See the links below: Increasing Costs At Southwest Airlines And What They Mean For The Carrier How Did Southwest Perform Operationally In October? Southwest Faces Market Heat As It Reports Disappointing Q3'16 Results; Future Guidance Bleak Southwest Q3'16 Earnings Preview: Labor Agreement, Rising Oil Prices To Weigh On Earnings How Did Southwest Airlines Perform Operationally In September?
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Consequently, the full year capacity is up as much as 5.8%, in line with the company guidance of 5%-6% full year capacity growth. Southwest has revised its unit revenues guidance for Q4'16 from a decline of 4%-5% to a decline of 3%-4%, attributable to the improvement seen in close in yields around holidays. See the links below: Increasing Costs At Southwest Airlines And What They Mean For The Carrier How Did Southwest Perform Operationally In October?
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271c9c42-3a09-4088-ab6f-7a3806d42853
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7685.0
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2017-01-16 00:00:00 UTC
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How American Airlines (AAL) Stock Stands Out in a Strong Industry
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AAL
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https://www.nasdaq.com/articles/how-american-airlines-aal-stock-stands-out-in-a-strong-industry-2017-01-16
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nan
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nan
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One stock that might be an intriguing choice for investors right now is American Airlines Group Inc.AAL . This is because this security in the Transportation-Airline space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Transportation-Airline space as it currently has a Zacks Industry Rank of 24 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.
Meanwhile, American Airlines is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm's prospects in both the short and long term.
American Airlines Group, Inc. Price and Consensus
American Airlines Group, Inc. Price and Consensus | American Airlines Group, Inc. Quote
In fact, over the past month, current quarter estimates have risen from 75 cents per share to 88 cents per share, while current year estimates have risen from $5.55 per share to $5.67 per share. This has helped AAL to earn a Zacks Rank #2 (Buy), further underscoring the company's solid position.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
So, if you are looking for a decent pick in a strong industry, consider American Airlines. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.
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American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This has helped AAL to earn a Zacks Rank #2 (Buy), further underscoring the company's solid position.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . One stock that might be an intriguing choice for investors right now is American Airlines Group Inc.AAL . Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. One stock that might be an intriguing choice for investors right now is American Airlines Group Inc.AAL . This has helped AAL to earn a Zacks Rank #2 (Buy), further underscoring the company's solid position.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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This has helped AAL to earn a Zacks Rank #2 (Buy), further underscoring the company's solid position.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . One stock that might be an intriguing choice for investors right now is American Airlines Group Inc.AAL . Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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One stock that might be an intriguing choice for investors right now is American Airlines Group Inc.AAL . This has helped AAL to earn a Zacks Rank #2 (Buy), further underscoring the company's solid position.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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997106b0-547e-4c20-9786-74fa14307838
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7686.0
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2017-01-13 00:00:00 UTC
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Canadian Pacific's (CP) Q4 Earnings: Stock to Disappoint?
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AAL
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https://www.nasdaq.com/articles/canadian-pacifics-cp-q4-earnings%3A-stock-to-disappoint-2017-01-13
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nan
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nan
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Calgary, Canada-based railroad operator, Canadian Pacific Railway LimitedCP is scheduled to report fourth-quarter 2016 results on Jan 18, after market close.
In the third quarter, the company reported lower-than-expected earnings and revenues. Results were hurt by weak coal demand, delayed grain harvest and other headwinds. Carloads (volume) plunged 20% year over year and revenue ton-miles fell 6%.
Things look bleak for the company in the fourth quarter as well. Our quantitative model too shows that Canadian Pacific is likely to report lower-than-expected earnings in the fourth quarter. A stock needs to have the right combination of the two key criteria - a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or at least 2 (Buy) or 3 (Hold) - for increasing the odds of an earnings beat.
Unfortunately, this is not the case here, as elaborated below.
Zacks ESP: The Earnings ESP for Canadian Pacific is -4.94%. This is because the Most Accurate estimate is 12 cents below the Zacks Consensus Estimate of $2.43 per share.
Zacks Rank: Canadian Pacific carries a Zacks Rank # 4 (Sell). You can see the complete list of today's Zacks #1 Rank stocks here .
Please note, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions as is the case with Canadian Pacific. The Zacks Consensus Estimate for the fourth quarter has gone down by a cent over the last seven days.
Canadian Pacific Railway Limited Price and EPS Surprise
Canadian Pacific Railway Limited Price and EPS Surprise | Canadian Pacific Railway Limited Quote
Factors Likely to Affect Q4
We expect Canadian Pacific's fourth quarter results to be hurt by weak coal demand as has been the case in the past few quarters.The company has slashed its 2016 earnings per share growth outlook and now expects the bottom-line to grow in mid-single digits in 2016 (the previous outlook had indicated double-digit earnings per share growth).
Coal and weak energy markets have been a major concern for leading railroads like Union Pacific Corp. UNP and Kansas City Southern KSU . Moreover, Canadian Pacific's high debt levels are also concerning.
A Stock to Consider
With Canadian Pacific likely to disappoint, investors interested in the transportation space may consider the following stock. This is because our model shows it possess the right combination of elements to post an earnings beat this quarter.
American Airlines Group AAL has an Earnings ESP of +5% and a Zacks Rank #3. The company, which will release its fourth-quarter results on Jan 27, has an impressive history with respect to earnings per share. The company beat the Zacks Consensus Estimate in each of the last four quarters with an average positive surprise of 20.48%.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks - absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Kansas City Southern (KSU): Free Stock Analysis Report
Union Pacific Corporation (UNP): Free Stock Analysis Report
Canadian Pacific Railway Limited (CP): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group AAL has an Earnings ESP of +5% and a Zacks Rank #3. Click to get this free report Kansas City Southern (KSU): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Calgary, Canada-based railroad operator, Canadian Pacific Railway LimitedCP is scheduled to report fourth-quarter 2016 results on Jan 18, after market close.
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Click to get this free report Kansas City Southern (KSU): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group AAL has an Earnings ESP of +5% and a Zacks Rank #3. Canadian Pacific Railway Limited Price and EPS Surprise Canadian Pacific Railway Limited Price and EPS Surprise | Canadian Pacific Railway Limited Quote Factors Likely to Affect Q4 We expect Canadian Pacific's fourth quarter results to be hurt by weak coal demand as has been the case in the past few quarters.The company has slashed its 2016 earnings per share growth outlook and now expects the bottom-line to grow in mid-single digits in 2016 (the previous outlook had indicated double-digit earnings per share growth).
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Click to get this free report Kansas City Southern (KSU): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group AAL has an Earnings ESP of +5% and a Zacks Rank #3. Please note, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions as is the case with Canadian Pacific.
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American Airlines Group AAL has an Earnings ESP of +5% and a Zacks Rank #3. Click to get this free report Kansas City Southern (KSU): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank: Canadian Pacific carries a Zacks Rank # 4 (Sell).
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1b7b9eaa-cf99-4b4b-b83a-778a8376a252
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7687.0
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2017-01-13 00:00:00 UTC
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Union Pacific (UNP) Q4 Earnings: What Awaits the Stock?
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AAL
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https://www.nasdaq.com/articles/union-pacific-unp-q4-earnings%3A-what-awaits-the-stock-2017-01-13
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nan
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nan
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Leading railroad operator Union Pacific CorporationUNP is slated to release fourth-quarter 2016 results on Jan 19, before the market opens.
Last quarter, the company reported lower-than-expected earnings. On a year-over-year basis, earnings, declined 9%. Revenues decreased 7% year over year to $5,174 million in the third quarter, edging past the Zacks Consensus Estimate of $5,141.8 million. The bulk of revenues at Union Pacific is derived from freight. A 7% decline in freight revenues hurt the top line. Declining coal shipments weighed on the company's results yet again. Volumes slipped 6%, with coal playing the biggest culprit.
In fact, the Union Pacific stock has underperformed the Zacks categorized Transportation-Rail industry over the last three months primarily due to coal-related headwinds. The stock gained 8.23% compared with the industry, which advanced 8.5% over the same period.
Earnings Whispers
Our quantitative model does not show conclusively that Union Pacific is likely to beat on earnings in the third quarter. According to our proven model, a company needs the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase its odds of an earnings surprise. However, this is not the case as highlighted below.
Zacks ESP: The Earnings ESP for Union Pacific is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.33 per share.
Zacks Rank: Union Pacific holds a Zacks Rank #3. Though the company has a favorable Zacks Racks, its 0.00% ESP complicates our surprise prediction. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Please note that the Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Union Pacific Corporation Price and EPS Surprise
Union Pacific Corporation Price and EPS Surprise | Union Pacific Corporation Quote
Factors Likely at Play
We expect Union Pacific's fourth-quarter results to be hurt by coal-related headwinds yet again. At the Credit Suisse 4th Annual Industrials Conference, the company's CFO - Rob Knight - stated that overall volumes are expected to decline in the band of 6% to 8% in 2016. Coal is likely to pose the biggest threat in the fourth quarter as volumes of the commodity had declined 11% as of Nov 25. Knight further stated that overall volumes are expected to decrease in low single digits with coal being down in low teens.
Moreover, the opening of the expanded Panama Canal, in 2016, may hurt the company's business. The train derailment in Oregon has also increased concerns about safety in the railroads industry.
We are, however, impressed with Union Pacific's efforts to reward its investors through share buybacks and dividend payments. In Nov 2016, the company raised its quarterly dividend payout by 10%. Further, the company's board announced a new share buyback plan that allows it to repurchase up to 120 million common shares by the end of 2020. We are also encouraged by the company's prudent cost management. The company is on track to achieve its operating ratio guidance of around 60% by 2019.
Stocks to Consider
Investors interested in the transportation space may consider the following stocks as our model shows they possess the right combination of elements to post an earnings beat this quarter.
American Airlines GroupAAL has an Earnings ESP of +5% and a Zacks Rank #3. The company, which will release its fourth-quarter results on Jan 27, has an impressive history with respect to earnings per share. The company beat the Zacks Consensus Estimate in each of the last four quarters with an average positive surprise of 20.48%.
CSX Corp.CSX has an Earnings ESP of +4.08% and a Zacks Rank #3. The company, which will release its fourth-quarter results on Jan 17, has an impressive history with respect to earnings per share. The company beat the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 4.46%.
Canadian National Railway CompanyCNI has an Earnings ESP of +4.55% and a Zacks Rank #3. The company, which will release its fourth-quarter results on Jan 24, has an impressive history with respect to earnings per share. The company beat the Zacks Consensus Estimate in each of the last four quarters with an average positive surprise of 5.6%.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks - absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CSX Corporation (CSX): Free Stock Analysis Report
Union Pacific Corporation (UNP): Free Stock Analysis Report
Canadian National Railway Company (CNI): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines GroupAAL has an Earnings ESP of +5% and a Zacks Rank #3. Click to get this free report CSX Corporation (CSX): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Leading railroad operator Union Pacific CorporationUNP is slated to release fourth-quarter 2016 results on Jan 19, before the market opens.
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Click to get this free report CSX Corporation (CSX): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL has an Earnings ESP of +5% and a Zacks Rank #3. Zacks Rank: Union Pacific holds a Zacks Rank #3.
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Click to get this free report CSX Corporation (CSX): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL has an Earnings ESP of +5% and a Zacks Rank #3. Zacks ESP: The Earnings ESP for Union Pacific is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.33 per share.
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American Airlines GroupAAL has an Earnings ESP of +5% and a Zacks Rank #3. Click to get this free report CSX Corporation (CSX): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Leading railroad operator Union Pacific CorporationUNP is slated to release fourth-quarter 2016 results on Jan 19, before the market opens.
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6d187860-eb8e-4665-ac94-9ac1e55a69bb
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7688.0
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2017-01-13 00:00:00 UTC
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Delta Q4’16 Earnings Review: Capacity Discipline Leads To Improvement In PRASM, Higher Expenses Weigh Down Earnings
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AAL
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https://www.nasdaq.com/articles/delta-q416-earnings-review-capacity-discipline-leads-improvement-prasm-higher-expenses
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nan
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nan
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Delta Air Lines ( DAL ) announced its fourth quarter and full year 2016 results on 12th January 2016, beating the consensus for both revenues and earnings. In line with our expectations, the improvement in unit revenues and strict capacity discipline, helped buoy the top line slightly. However, the bottom line continued to be weighed down by higher expenditure on wages (post the new pilot contract) and aircraft maintenance.
To breakdown the growth in top line, we discuss in detail the three determining factors: capacity, unit revenues, and load factor. Delta grew its capacity by a small amount of 0.9% y-o-y in the December quarter. Most of the capacity growth came in from domestic routes, while internationally the company continued to cut capacity, even in Latin America, (-0.1%), which was the only region to see positive unit revenues. This was done keeping in mind the growing expenses at the carrier, owing to the higher oil prices and new labor contracts, which made a turnaround in unit revenues imperative. Consequently, the restriction of capacity growth to a mere 0.9%, as compared to the smaller players in the industry, bore fruit in the way of a smaller decline in unit revenues, at -2.7% y-o-y. Despite the capacity discipline, the smaller yet continued decline in PRASM, along with a slight drop in the occupancy rate (85.1%) led to a faint revenue fall.
In terms of costs excluding fuel, the company incurred additional costs of 10.6% y-o-y in the quarter. Of the total increase, roughly 8 percentage points is attributable to the impact of the new pilot contract, which came in effect retroactively from 1st January 2016, totaling $475 million of expense, of which $380 million relates to the first three quarters of the year 2016. Besides, the increases in wages and salaries, aircraft maintenance, contracted services and rents, and landing fees drove the expenses higher. Consequently, Delta's operating margins came down by over 7 percentage points, resulting in a decline in earnings per share in the quarter.
Apart from this, Delta generated $640 million in free cash flows (adjusted for capital expenditure and hedging activities), allowing the company to return approximately $449 million back to its equity owners, in terms of dividends and buybacks. That is, 70% of the free cash flows were returned to the company's shareholders.
Going forward, the company intends to continue restricting or even cutting capacity, if needed, in order to see growth in its unit revenues and operating margins. The system-wide capacity is likely to stay flat in the first quarter of 2017, to facilitate growth in unit revenues. In terms of costs, they are expected to keep rising as the crude oil prices go up, and the effect of the new pilot contracts is felt on the bottom line. Accordingly, the operating margin in the first quarter will only be slightly better than that seen in Q4'16. Furthermore, Delta's management mentioned that its priority is to keep the capacity growth in check until it is able to reach previous levels of operating margins (17%-19%). The company also sees an opportunity to grow its top line through branded fare initiatives, which allows passengers to tailor their travel experience. The incremental revenues expected from this in 2017 is $300 million.
Have more questions about Delta Air Lines ( DAL )? See the links below:
Delta Q4'16 Earnings Preview: Capacity Reduction To Show Improvement In Unit Revenues, But Weigh Down The Top Line
Delta Off To A Tumultuous Start In The First Quarter Of 2017
What Are The Measures Undertaken By Delta To Keep Its Fuel Costs Under Control?
Delta's Path Towards Positive Unit Revenues
How Did Delta Perform Operationally In November?
How Did Delta Perform Operationally In October?
How Has Delta Managed Its Capacity In The Face Of Rising Competition & Increasing Pressure On Unit Revenues?
How Did Delta Perform Operationally In August?
What Is The Impact Of Flight Delays?
Delta Versus JetBlue: Expansion Into Boston And Its Effect On Unit Revenues
How Will Delta Air Lines Utilize Its Cash Flows?
Delta Airlines Re-Fleeting Program: How Will It Help?
Why Did Delta's Operating Margin Soar In 2015?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Delta Air Lines ( DAL ) announced its fourth quarter and full year 2016 results on 12th January 2016, beating the consensus for both revenues and earnings. This was done keeping in mind the growing expenses at the carrier, owing to the higher oil prices and new labor contracts, which made a turnaround in unit revenues imperative. Going forward, the company intends to continue restricting or even cutting capacity, if needed, in order to see growth in its unit revenues and operating margins.
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In line with our expectations, the improvement in unit revenues and strict capacity discipline, helped buoy the top line slightly. However, the bottom line continued to be weighed down by higher expenditure on wages (post the new pilot contract) and aircraft maintenance. See the links below: Delta Q4'16 Earnings Preview: Capacity Reduction To Show Improvement In Unit Revenues, But Weigh Down The Top Line Delta Off To A Tumultuous Start In The First Quarter Of 2017 What Are The Measures Undertaken By Delta To Keep Its Fuel Costs Under Control?
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See the links below: Delta Q4'16 Earnings Preview: Capacity Reduction To Show Improvement In Unit Revenues, But Weigh Down The Top Line Delta Off To A Tumultuous Start In The First Quarter Of 2017 What Are The Measures Undertaken By Delta To Keep Its Fuel Costs Under Control? Delta's Path Towards Positive Unit Revenues How Did Delta Perform Operationally In November? Delta Versus JetBlue: Expansion Into Boston And Its Effect On Unit Revenues How Will Delta Air Lines Utilize Its Cash Flows?
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In line with our expectations, the improvement in unit revenues and strict capacity discipline, helped buoy the top line slightly. Of the total increase, roughly 8 percentage points is attributable to the impact of the new pilot contract, which came in effect retroactively from 1st January 2016, totaling $475 million of expense, of which $380 million relates to the first three quarters of the year 2016. In terms of costs, they are expected to keep rising as the crude oil prices go up, and the effect of the new pilot contracts is felt on the bottom line.
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a80a3c3e-3938-489a-addc-7c29347c19eb
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7689.0
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2017-01-12 00:00:00 UTC
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This Airline Stock Surged 61% in 2016: Is There Room to Run in 2017?
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AAL
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https://www.nasdaq.com/articles/airline-stock-surged-61-2016-there-room-run-2017-2017-01-12
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nan
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nan
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While most of its fellow airline stocks were grounded last year, Hawaiian Holdings (NASDAQ: HA) soared to new heights. Shares of Hawaiian Airlines' parent company rose 61% during 2016, according to data from S&P Global Market Intelligence .
Hawaiian Holdings 2016 Stock Performance, data by YCharts .
Hawaiian's massive gains were well deserved, as it posted the best unit revenue results in the U.S. airline industry for most of the year. Three key revenue drivers could help it keep growing unit revenue in 2017 and beyond. Nevertheless, the company faces rising costs, while its revenue outperformance could fade over the next few quarters. As a result, Hawaiian Holdings stock could take a breather in 2017.
The year everything went right
During 2016, airlines continued to benefit from falling fuel prices. However, overcapacity and the resulting fare wars drove steep unit revenue declines for many carriers, eroding profitability despite the tailwind from falling fuel costs. For example, in the first nine months of 2016, revenue per available seat mile (RASM) slumped 5.2% at American Airlines (NASDAQ: AAL) .
Hawaiian Airlines shared in the industry's fuel savings. Economic fuel costs for 2016 are on track to come in around $1.53/gallon, down 25% from $2.04/gallon in 2015. However, it managed to keep unit revenue roughly stable (up 0.7%) for the first nine months of the year before returning to strong growth in Q4. Hawaiian has projected that its fourth quarter RASM will increase 3%-6%.
Unit revenue growth is taking off at Hawaiian Airlines. Image source: Wikimedia Commons .
Hawaiian's 2016 RASM performance was helped by three key factors. First, leisure travel demand remained strong in the U.S. and Japan, its main markets. Second, Hawaii was spared from the overcapacity and fare wars that were so prevalent elsewhere. Through the first 11 months of 2016, air capacity to Hawaii rose less than 1% year over year. Third, the Japanese yen strengthened against the dollar for much of the year, boosting Hawaiian's revenue from Japan.
Between Hawaiian Airlines' early return to unit revenue growth, lower interest expense from its debt reduction activities, and lower fuel prices, analysts expect Hawaiian to finish 2016 with 70% full-year EPS growth.
Can Hawaiian maintain its momentum?
Looking ahead, three key catalysts could help Hawaiian Airlines continue growing RASM. First, in some markets where the carrier operates -- particularly Japan -- airlines tack on fuel surcharges based on the price of jet fuel. During 2017, the recent rise in oil prices will be passed through to customers in the form of higher fuel surcharges, supporting unit revenue.
Second, Hawaiian Airlines is in the midst of retrofitting its A330 fleet with 18 lie-flat seats in the premium cabin. At the same time, it is increasing the number of extra-legroom economy seats on each A330 from 40 to 68. Over the next two years, these retrofits should drive unit revenue growth, as well-to-do travelers will be willing to pay more for these upgraded seats.
Hawaiian Airlines is introducing lie-flat premium seats on its A330 fleet. Image source: Hawaiian Airlines.
Third, Hawaiian is scheduled to introduce the A321neo on West Coast-Hawaii routes later this year, replacing its aging fleet of Boeing 767s. The A321neo is a smaller, more efficient plane than the 767. It will hold 189 seats in Hawaiian's configuration, compared to 252-264 for the carrier's 767s.
This smaller size will allow Hawaiian to more closely match capacity with demand, driving unit revenue higher. For example, it will be able to reduce capacity on routes where the 767 is a little too big, while adding new nonstop routes that weren't viable with the 767 or A330.
Hawaiian Airlines is flying into headwinds
Thus, Hawaiian Airlines has some ongoing unit revenue catalysts entering 2017. However, the yen's sharp decline against the dollar since early November will partially offset those revenue drivers. Moreover, Hawaiian's unit revenue performance will become less unique, because the rest of the airline industry is finally returning to unit revenue growth, led by American Airlines.
On Wednesday morning, American projected that its unit revenue rose as much as 2% during the fourth quarter. That represented a huge improvement from its initial expectations. Entering Q4, American Airlines expected RASM to fall 1%-3%. Rapid unit revenue improvements at other airlines could lure some investors away from Hawaiian Holdings stock in 2017.
American Airlines will join Hawaiian in reporting unit revenue growth in Q4. Image source: American Airlines.
Hawaiian will face significant near-term cost pressure, too. Fuel costs are on pace to rise by double digits this year from the multi-year lows of 2016. Additionally, at the company's investor day last month, CFO Shannon Okinaka forecast that non-fuel unit costs will rise at a low-mid single digit rate in 2017.
That didn't even include the biggest potential cost headwind. Hawaiian Airlines' pilots are demanding big pay increases for their contract that could cost the company as much as $74 million in the first year . (Indeed, the top-of-scale wage for a Hawaiian Airlines A330 captain is $207/hour, compared to $302/hour at American Airlines.) This would increase non-fuel unit costs by another 4%-5%.
Hawaiian Holdings stock trades for about 12 times the company's projected 2017 earnings. That's not especially cheap for an airline stock. With Hawaiian facing significant cost inflation and other airlines starting to return to unit revenue growth, the stock is likely to cool down this year.
10 stocks we like better than Hawaiian Holdings
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*Stock Advisor returns as of January 4, 2017
Adam Levine-Weinberg owns shares of Boeing and Hawaiian Holdings and is short January 2017 $50 calls on Hawaiian Holdings. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, in the first nine months of 2016, revenue per available seat mile (RASM) slumped 5.2% at American Airlines (NASDAQ: AAL) . However, overcapacity and the resulting fare wars drove steep unit revenue declines for many carriers, eroding profitability despite the tailwind from falling fuel costs. Additionally, at the company's investor day last month, CFO Shannon Okinaka forecast that non-fuel unit costs will rise at a low-mid single digit rate in 2017.
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For example, in the first nine months of 2016, revenue per available seat mile (RASM) slumped 5.2% at American Airlines (NASDAQ: AAL) . Between Hawaiian Airlines' early return to unit revenue growth, lower interest expense from its debt reduction activities, and lower fuel prices, analysts expect Hawaiian to finish 2016 with 70% full-year EPS growth. Looking ahead, three key catalysts could help Hawaiian Airlines continue growing RASM.
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For example, in the first nine months of 2016, revenue per available seat mile (RASM) slumped 5.2% at American Airlines (NASDAQ: AAL) . Between Hawaiian Airlines' early return to unit revenue growth, lower interest expense from its debt reduction activities, and lower fuel prices, analysts expect Hawaiian to finish 2016 with 70% full-year EPS growth. Hawaiian Airlines is flying into headwinds Thus, Hawaiian Airlines has some ongoing unit revenue catalysts entering 2017.
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For example, in the first nine months of 2016, revenue per available seat mile (RASM) slumped 5.2% at American Airlines (NASDAQ: AAL) . Hawaiian Holdings 2016 Stock Performance, data by YCharts . Moreover, Hawaiian's unit revenue performance will become less unique, because the rest of the airline industry is finally returning to unit revenue growth, led by American Airlines.
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e7f699ce-032f-420f-85eb-2c5a9697f17d
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7690.0
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2017-01-12 00:00:00 UTC
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Delta Air Lines (DAL) Q4 Earnings in Line, Revenues Beat
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-dal-q4-earnings-in-line-revenues-beat-2017-01-12
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nan
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nan
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Delta Air Lines Inc.DAL , which kick-started the fourth-quarter earnings season in the airline space, delivered a mixed performance. While the company's earnings were in line with estimates, it posted better-than-expected revenues in the quarter.
The Atlanta, GA-based carrier's fourth-quarter earnings (excluding special items) of 82 cents per share met the Zacks Consensus Estimate. The bottom line, however, declined over 30% on a year-over-year basis.
Operating revenues of $9,458 million beat the Zacks Consensus Estimate by 1.1%. Revenues declined marginally from the year-ago figure.
During the quarter, passenger revenues and cargo revenues declined 1.9% and 9.8%, respectively, both on a year-over-year basis. Other revenues increased 10.6%. The average fuel price (adjusted) in the fourth quarter was $1.60 per gallon.
Operating Statistics
Revenue passenger miles (a measure of air traffic) increased marginally to 50 billion. Capacity or available seat miles inched up 0.9% to 58.7 billion. Load factor (percentage of seats filled by passengers) declined 10 basis points year over year to 85.1% as traffic growth was outpaced by capacity expansion in the quarter. Passenger revenue per available seat mile (PRASM) dipped 2.7% year over year to 13.58 cents. Passenger mile yield declined 2.7% to 15.95 cents.
Operating Expenses
Total operating expenses, including special items, climbed 8% year over year to $8,438 million. Consolidated unit cost or cost per available seat mile (CASM), including profit sharing, increased 10.6%, mainly due to the agreement with pilots, which was ratified in December.
Liquidity
At the end of the fourth quarter, Delta had $2.76 billion in cash and cash equivalents and adjusted net debt of $6.1 billion. The company managed to reduce its net debt significantly from the 2009 levels. Delta generated free cash flow of $640 million and adjusted operating cash flow of $1.2 billion in the fourth quarter.
Dividend and Share Repurchase
Delta returned $449 million to its shareholders through dividends ($149 million) and share buybacks ($300 million) in the quarter under review. We are impressed with the company's efforts to return greater value to its investors. In May 2016, the company raised its quarterly cash dividend to over 20 cents per share or 81 cents per share annualized.
This represents an increase of 50% over the previous quarterly payout of 13.5 cents per share or 54 cents per share annualized. The carrier has returned $3.1 billion to shareholders in 2016.
Annual Results
For full-year 2016, the carrier's earnings (on an adjusted basis) climbed 15.4% to $5.32 per share. Revenues declined 3% to $39.64 billion. The Zacks Consensus Estimate was of earnings of $5.32 per share on revenues of $39.6 billion.
Delta Air Lines, Inc. Price, Consensus and EPS Surprise
Delta Air Lines, Inc. Price, Consensus and EPS Surprise | Delta Air Lines, Inc. Quote
First-Quarter 2017 Guidance
For the first quarter of 2017, the carrier expects operating margin in the range of 11% to 13%. The estimated fuel price, including taxes and refinery impact, is expected in the range of $1.68 to $1.73 per gallon for the first quarter. System capacity is expected to be in a range of flat to a decline of 1%, on a year-over-year basis. The company expects unit revenues in the range of flat to 2% increase in the first quarter.
We note that Delta is not the only company to have come out with a bullish unit revenue guidance. Its peers like United Continental Holdings UAL and American Airlines Group AAL are also bullish on the metric as they strive to return to unit revenue growth.
Zacks Rank & a Key Pick
Currently, Delta has a Zacks Rank #3 (Hold). A better-ranked stock in the airline space is Copa Holdings CPA . Copa Holdings sports a Zacks Rank # 1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
We note that the Zacks Consensus Estimate for fourth-quarter 2016 for Copa Holdings has climbed 2 cents to $1.27 per share over the last seven days.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Copa Holdings, S.A. (CPA): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its peers like United Continental Holdings UAL and American Airlines Group AAL are also bullish on the metric as they strive to return to unit revenue growth. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta Air Lines Inc.DAL , which kick-started the fourth-quarter earnings season in the airline space, delivered a mixed performance.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Its peers like United Continental Holdings UAL and American Airlines Group AAL are also bullish on the metric as they strive to return to unit revenue growth. Operating Expenses Total operating expenses, including special items, climbed 8% year over year to $8,438 million.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Its peers like United Continental Holdings UAL and American Airlines Group AAL are also bullish on the metric as they strive to return to unit revenue growth. The Zacks Consensus Estimate was of earnings of $5.32 per share on revenues of $39.6 billion.
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Its peers like United Continental Holdings UAL and American Airlines Group AAL are also bullish on the metric as they strive to return to unit revenue growth. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. While the company's earnings were in line with estimates, it posted better-than-expected revenues in the quarter.
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ef255682-bea5-42c1-924c-c8232e36302b
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7691.0
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2017-01-12 00:00:00 UTC
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Will American Airlines Return to Unit Revenue Growth in Q4?
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AAL
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https://www.nasdaq.com/articles/will-american-airlines-return-to-unit-revenue-growth-in-q4-2017-01-12
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nan
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Stocks in the airline space have been plagued by woes related to unit revenues for more than a year. However, the ills related to the issue seem to be mitigating, going by the bullish updates issued by various carriers with respect to revenue per available seat miles (RASM: a key measure of unit revenue measuring sales with respect to capacity of a carrier) for the final quarter of 2016.
Joining the likes of Delta Air Lines DAL , United Continental Holdings UAL and Southwest Airlines LUV , the Fort Worth, Texas-based American Airlines GroupAAL too came out with an improved view on total revenue per available seat mile (TRASM). The view has raised hopes that American Airlines will be the first major U.S. carrier to return to unit revenue growth in two years.
The carrier now expects the metric to be flat to up 2% (on a year-over-year basis) in the fourth quarter. The view represents a marked improvement from the guidance issued last month, when it expected the metric in the band of a decline of 1% to an increase of 1%. The improved view was due to "improving yields."
Apart from the bullish fourth-quarter unit revenue view, American Airlines raised its guidance for pre-tax margin. American Airlines now expects the metric in the range of 7% to 9% (previous guidance with respect to the metric was in the band of 6% to 8%).
The bullish views impacted the stock positively on Jan 11. In fact, the stock has been performing well for quite some time. The stock comfortably outperformed the Zacks categorized Transportation-Airline industry over the last three months. The stock gained 30.12% compared with the industry which advanced 22.38% in the same time frame.
Due to the recent labor deals inked by the company, costs will increase in the final quarter of 2016. Consequently, the carrier expects consolidated unit cost per available seat mile (CASM: mainline ) - excluding fuel and special items - to increase in the band of 9% to 11% in the final quarter of 2016.
The views were revealed by the company alongside its December traffic data. Consolidated traffic, measured in revenue passenger miles (RPMs), declined 0.8% on a year-over-year basis to $18.2 billion. The downside was primarily attributable to the 3% decline in domestic traffic.
Consolidated capacity (available seat miles/ASMs) inched up 0.5% to 22.6 billion in the month. However, load factor or the percentage of seats filled by passengers decreased 100 basis points (bps) to 80.6% in Dec 2016. This was primarily because capacity expanded while traffic contracted, thereby leading to empty planes.
In 2016, American Airlines recorded 0.2% growth in RPMs, while ASMs climbed 1.7%, both on a year-over-year basis. Also, load factor declined 130 bps to 81.7% and the total passenger count (Enplanements) slipped 1.3% in the same period.
Zacks Rank
American Airlines currently carries a Zacks Rank # 3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Zacks' Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Company (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Joining the likes of Delta Air Lines DAL , United Continental Holdings UAL and Southwest Airlines LUV , the Fort Worth, Texas-based American Airlines GroupAAL too came out with an improved view on total revenue per available seat mile (TRASM). Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The view has raised hopes that American Airlines will be the first major U.S. carrier to return to unit revenue growth in two years.
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Joining the likes of Delta Air Lines DAL , United Continental Holdings UAL and Southwest Airlines LUV , the Fort Worth, Texas-based American Airlines GroupAAL too came out with an improved view on total revenue per available seat mile (TRASM). Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Consolidated traffic, measured in revenue passenger miles (RPMs), declined 0.8% on a year-over-year basis to $18.2 billion.
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Joining the likes of Delta Air Lines DAL , United Continental Holdings UAL and Southwest Airlines LUV , the Fort Worth, Texas-based American Airlines GroupAAL too came out with an improved view on total revenue per available seat mile (TRASM). Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. However, the ills related to the issue seem to be mitigating, going by the bullish updates issued by various carriers with respect to revenue per available seat miles (RASM: a key measure of unit revenue measuring sales with respect to capacity of a carrier) for the final quarter of 2016.
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Joining the likes of Delta Air Lines DAL , United Continental Holdings UAL and Southwest Airlines LUV , the Fort Worth, Texas-based American Airlines GroupAAL too came out with an improved view on total revenue per available seat mile (TRASM). Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Consolidated traffic, measured in revenue passenger miles (RPMs), declined 0.8% on a year-over-year basis to $18.2 billion.
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d4e3b8ca-28e0-419b-a12e-011b376b3ef8
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7692.0
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2017-01-11 00:00:00 UTC
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United Continental Gains on Improved Q4 Unit Revenue View
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AAL
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https://www.nasdaq.com/articles/united-continental-gains-on-improved-q4-unit-revenue-view-2017-01-11
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nan
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nan
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Shares of United Continental HoldingsUAL have been on an uptrend in recent times. The stock has comfortably outpaced the Zacks categorized Transportation-Airline industry in the last three months. The stock gained 37.63% compared with the industry, which advanced just 19.12% over the same period.
Continuing its trend of bullish performance, United Continental unveiled an improved guidance with respect to passenger unit revenues for the final quarter of 2016. The bullish guidance naturally found favor with investors, resulting in the stock gaining significantly in after-market trading on Jan 10.
Owing to better-than-expected close-in bookings and yields, the company now expects passenger unit revenues (a measure of sales relative to capacity for a carrier) for the fourth quarter of 2016 to decline in the band of 1.25-1.75%, on a year-over-year basis. The view represents a marked improvement from the earlier guidance, when the metric was expected to decline in the band of 3-4%. The carrier said that in the two weeks leading to Christmas, business demand exceeded expectations and holiday season demand for leisure touched the roof.
We note that United Continental is not the only company to have come out with a bullish unit revenue guidance. Its peers like Delta Air Lines DAL , American Airlines Group AAL and Southwest Airlines LUV have all unfurled improved views with respect to this key metric for the fourth quarter of 2016.
Apart from the bullish fourth-quarter unit revenue view, United Continental raised its guidance for pre-tax margin (adjusted). United Continental now expects the metric in the range of 9.25% to 9.75% (previous guidance with respect to the metric was in the band of 7.5% to 8.5%). Due to the recent labor deals inked by the company, costs will increase in the final quarter of 2016.
Consequently, the carrier expects consolidated unit cost per available seat mile (CASM) - excluding fuel, profit sharing and third-party expenses - to increase in the band of 4% to 4.25 % in the quarter. Fuel Price (inclusive of all cash settled hedges) is projected at $1.62 per gallon. Capacity for the fourth quarter is predicted to expand by 2% in the final quarter of 2016.
Apart from the forecast, the company revealed that consolidated traffic - measured in Revenue Passenger Miles or RPMs - for the month of December climbed 2.6% year over year to 17.6 billion. RPMs grew both in the domestic and international markets. Consolidated capacity - measured in Available Seat Miles - was up 2.6% to 21.2 billion. Another important metric, load factor (percentage of seats filled with passengers) climbed marginally to 83.1% in the final month of 2016. For full-year 2016, consolidated traffic and capacity increased 0.8% and 1.4%, respectively. Load factor contracted 50 basis points to 82.9%.
Zacks Rank
United Continental Holdings currently carries a Zacks Rank # 3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here .
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Company (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its peers like Delta Air Lines DAL , American Airlines Group AAL and Southwest Airlines LUV have all unfurled improved views with respect to this key metric for the fourth quarter of 2016. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The bullish guidance naturally found favor with investors, resulting in the stock gaining significantly in after-market trading on Jan 10.
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Its peers like Delta Air Lines DAL , American Airlines Group AAL and Southwest Airlines LUV have all unfurled improved views with respect to this key metric for the fourth quarter of 2016. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from the forecast, the company revealed that consolidated traffic - measured in Revenue Passenger Miles or RPMs - for the month of December climbed 2.6% year over year to 17.6 billion.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Its peers like Delta Air Lines DAL , American Airlines Group AAL and Southwest Airlines LUV have all unfurled improved views with respect to this key metric for the fourth quarter of 2016. Continuing its trend of bullish performance, United Continental unveiled an improved guidance with respect to passenger unit revenues for the final quarter of 2016.
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Its peers like Delta Air Lines DAL , American Airlines Group AAL and Southwest Airlines LUV have all unfurled improved views with respect to this key metric for the fourth quarter of 2016. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Continuing its trend of bullish performance, United Continental unveiled an improved guidance with respect to passenger unit revenues for the final quarter of 2016.
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f3733399-b054-40af-b789-3a40610f3f55
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7693.0
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2017-01-11 00:00:00 UTC
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Airlines' Revenue Recovery Is in Full Swing
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AAL
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https://www.nasdaq.com/articles/airlines-revenue-recovery-full-swing-2017-01-11
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nan
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nan
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During 2015, plunging oil prices drove an increase in competition in the U.S. airline industry, leading to sharp unit revenue declines at many carriers.
Since then, airlines have had more trouble than expected in returning to unit revenue growth. During 2016, airline executives repeatedly pushed back their estimates of when unit revenue would start climbing again.
Airline industry unit revenue is finally improving. Image source: The Motley Fool.
That moment has finally arrived. Nearly every major airline has raised its Q4 revenue guidance during the past three months. Just this week, American Airlines (NASDAQ: AAL) , United Continental (NYSE: UAL) , and Southwest Airlines (NYSE: LUV) all raised their fourth-quarter unit revenue forecasts, confirming that the revenue environment has finally stabilized.
American Airlines and United Continental keep improving
American Airlines' revenue outlook has improved steadily as the fourth quarter progressed. In October, the company expected its Q4 revenue per available seat mile (RASM) to decline 1% to 3%. However, it has lifted its outlook in each successive month since then.
On Wednesday, American Airlines released its final guidance update for the fourth quarter. (It will report its official results later this month.) The company now expects RASM to rise 0% to 2% for the full quarter, driven primarily by a rebound in fares for last-minute bookings. That's a 3-percentage-point improvement from its outlook three months ago.
American Airlines is the first major airline to return to unit revenue growth. Image source: American Airlines.
United Airlines has reported similar trends. Three months ago, United expected its passenger revenue per available seat mile (PRASM) to slump 4% to 6% in Q4. In December, it raised its outlook, calling for a 3% to 4% PRASM decline.
Even that estimate was far too conservative. On Tuesday, United Continental revealed that it is likely to report a modest PRASM decrease of just 1.25% to 1.75% for Q4. Measuring from the midpoint of this guidance range, United's unit revenue forecast has improved by 3.5 percentage points over the past three months.
Not surprisingly, the improving unit revenue trends are lifting profits at American Airlines and United Continental. American expects to report a pre-tax margin of 7% to 9% in Q4, compared to its initial forecast of 4% to 6%. United's pre-tax margin guidance range has risen to 9.25% to 9.75% from 5% to 7% originally.
Southwest joins the fun
Southwest Airlines posted some of the strongest unit revenue results in the industry during the first half of 2016. However, it ran into trouble as the year wore on, due in part to its overly aggressive expansion plan.
Southwest Airlines has lagged its peers in terms of unit revenue lately. Image source: The Motley Fool.
In October, Southwest projected that its RASM would decline 4% to 5% in Q4. It hasn't seen the same level of revenue improvement as its larger rivals, but in the past month or two it has also benefited from stronger last-minute bookings. As a result, Southwest lifted its unit revenue guidance by 1 percentage point on Tuesday. It now expects RASM to fall 3% to 4% in Q4.
Margins will decrease -- at least for now
Despite the strengthening unit revenue environment, American Airlines, United Continental, and Southwest Airlines are all on pace to report year-over-year margin declines for the fourth quarter. (In fact, that will be true for nearly every U.S. airline.) The declines will range from very modest for United to quite steep at Southwest.
Rising fuel prices and labor costs will keep the pressure on during 2017. However, the outlook for airlines looks a whole lot better today than it did three months ago, even with fuel prices trending higher.
Capacity discipline and a strong demand environment can allow airlines to offset cost increases through unit revenue growth. That process has already started to play out. If airlines maintain their revenue momentum in 2017, investors will become more confident about the long-term sustainability of their earnings. That could help shares of American Airlines, United Continental, and Southwest Airlines to continue rising.
10 stocks we like better than Southwest Airlines
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Southwest Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of January 4, 2017
Adam Levine-Weinberg has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Just this week, American Airlines (NASDAQ: AAL) , United Continental (NYSE: UAL) , and Southwest Airlines (NYSE: LUV) all raised their fourth-quarter unit revenue forecasts, confirming that the revenue environment has finally stabilized. During 2015, plunging oil prices drove an increase in competition in the U.S. airline industry, leading to sharp unit revenue declines at many carriers. The company now expects RASM to rise 0% to 2% for the full quarter, driven primarily by a rebound in fares for last-minute bookings.
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Just this week, American Airlines (NASDAQ: AAL) , United Continental (NYSE: UAL) , and Southwest Airlines (NYSE: LUV) all raised their fourth-quarter unit revenue forecasts, confirming that the revenue environment has finally stabilized. American Airlines and United Continental keep improving American Airlines' revenue outlook has improved steadily as the fourth quarter progressed. Margins will decrease -- at least for now Despite the strengthening unit revenue environment, American Airlines, United Continental, and Southwest Airlines are all on pace to report year-over-year margin declines for the fourth quarter.
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Just this week, American Airlines (NASDAQ: AAL) , United Continental (NYSE: UAL) , and Southwest Airlines (NYSE: LUV) all raised their fourth-quarter unit revenue forecasts, confirming that the revenue environment has finally stabilized. American Airlines and United Continental keep improving American Airlines' revenue outlook has improved steadily as the fourth quarter progressed. Margins will decrease -- at least for now Despite the strengthening unit revenue environment, American Airlines, United Continental, and Southwest Airlines are all on pace to report year-over-year margin declines for the fourth quarter.
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Just this week, American Airlines (NASDAQ: AAL) , United Continental (NYSE: UAL) , and Southwest Airlines (NYSE: LUV) all raised their fourth-quarter unit revenue forecasts, confirming that the revenue environment has finally stabilized. Since then, airlines have had more trouble than expected in returning to unit revenue growth. Airline industry unit revenue is finally improving.
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7694.0
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2017-01-10 00:00:00 UTC
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The Zacks Analyst Blog Highlights: American Airlines Group, SkyWest, Hawaiian Holdings, LATAM Airlines Group, Deutsche Lufthansa Aktiengesellschaft and International Consolidated Airlines Group, S.A.
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-american-airlines-group-skywest-hawaiian-holdings-latam
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For Immediate Release
Chicago, IL - January 10, 2017, 2016 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include American Airlines Group Inc. (NASDAQ: AAL - Free Report ), SkyWest, Inc. (NASDAQ: SKYW - Free Report ), Hawaiian Holdings, Inc. (NASDAQ: HA - Free Report ), LATAM Airlines Group S.A. (NYSE: LFL - Free Report ), Deutsche Lufthansa Aktiengesellschaft (OTCMKTS: DLAKY - Free Report ) and International Consolidated Airlines Group, S.A. (OTCMKTS: ICAGY - Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday's Analyst Blog:
5 Airline Stocks Set to Fly High in 2017
It's time for airline investors to buckle up as 2017 may be another strong year. Revenue per available seat mile (RASM) is projected to increase at a steady clip, while imminent investors like Warren Buffett who has spent most of his life decrying airline investing, recommitted to the industry in November.
Thanks to several years of restructuring and re-engineering of businesses, the airline industry is way more resilient now. The International Air Transport Association (IATA) expects the global airline industry to register a solid $30 billion in profits this year. Lest we forget, the industry posted its highest ever profits last year. Banking on such factors, it will be prudent to invest in fundamentally sound airline companies.
Airline Stocks to Soar This Year
Airline stocks are presumed to stay hot in 2017, courtesy of several factors. Most analysts track the industry metric RASM which determines the revenue generated by one passenger flying one mile. The metric has been registering a rise of late. RASM declined for the 20th successive month, while international RASM dropped for the 30th month in a row.
Higher fuel prices, however, seems more likely this year, which will drive RASM. Crude oil prices have more than doubled from a 2016 low of $26 per barrel, while several analysts' believe that it may go up further.
Major airlines, in the meantime, seem committed to increase in capacity. According to Stifel analyst Joseph DeNardi, domestic capacity growth is estimated to increase 3.25%, including 2% growth at Delta, 2.25% at United Continental and 2% at Southwest this year. He added that such an increase in supply growth along with 3%-3.5% growth in GDP will support an increase in RASM, domestically. The third-quarter output of goods and services had already increased at an annual rate of 3.5%, according to the 'third" estimate by the Bureau of Economic Analysis.
There is also a marked change in the perceptions regarding the airline industry. Buffett, who had been publicly denouncing airline investments, ventured into the space on Nov 14, buying shares valued at about $1.3 billion as of Sep 30.
IATA: Airline Industry to See $30B in Profits
According to the IATA, the global airline industry is forecasted to see strong net profit of $29.8 billion, with 4 billion travelers projected to take to the sky. The earnings represent a 4.1% net profit margin on the back of expected total revenue of $736 billion. IATA director-general and chief executive officer Alexandre de Juniac mentioned a few challenges in the form of low global passenger load factor which will likely be offset by the projected rise in world GDP by 2.5%, up 2.2% from last year. Airlines around the world have already generated approximately $35.6 billion in profits during 2016, the highest for the global airline industry.
North American airlines are anticipated to deliver the strongest financial performance this year, with net profits of $18.1 billion. Meanwhile, Asia Pacific airlines are expected to record earnings of $6.3 billion followed by estimated earnings of $5.6 billion from European airlines. Juniac added that capacity offered by the region's carriers is forecasted to grow 7.6%, ahead of an earlier forecast of 7%, thanks to expansion of new airlines and liberalization.
Optimism surrounding the air cargo business this year has also improved. Cargo industry volume is expected to reach a new high of 55.7 million tons this year, up from 53.9 million tons last year, while revenue for air cargo is expected to rise slightly to $49.40 billion.
5 Airline Stocks to Buy Now
Given such optimistic predictions, it's worth investing in the airline space this year. Buffet, to whom the industry was a "death trap" back in 2013, has changed his tune last year, with his investments in four major airlines have been anything but lethal so far. Since his public announcement, shares of Delta, American Airlines Group Inc. (NASDAQ: AAL - Free Report ), Southwest and United jumped 6%, 7%, 13% and 14%, respectively.
We have thus selected five solid airline stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of 'A' or 'B.' Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners.
SkyWest, Inc. (NASDAQ: SKYW - Free Report ) operates as a regional airline in the U.S. It provides scheduled passenger and air freight services in the U.S., Canada, Mexico and the Caribbean. SkyWest has a Zacks Rank #2 and a VGM Score of 'A.' The Zacks Consensus Estimate for its current year earnings increased 0.7% over the last 60 days. In the past one year, SkyWest's shares recorded an average return of 137.37% compared to the Zacks categorized Transportation-Airline industry's return of 16.89%.
Hawaiian Holdings, Inc. (NASDAQ: HA - Free Report ) engages in the scheduled air transportation of passengers and cargo. It offers daily services on North America routes. Hawaiian Holdings has a Zacks Rank #1 and a VGM Score of 'A.' The Zacks Consensus Estimate for its current year earnings advanced 2.4% over the last 60 days. Over the last one-year period, Hawaiian Holdings' shares recorded an average return of 72.25%.
LATAM Airlines Group S.A. (NYSE: LFL - Free Report ) provides passenger and cargo air transportation services in America, Europe and Oceania. LATAM Airlines Group has a Zacks Rank #2 and a VGM Score of 'B.' The Zacks Consensus Estimate for its current year earnings improved 3.4% over the last 30 days. In the last one-year period, LATAM Airlines' shares yielded an average return of 64.57%.
Deutsche Lufthansa Aktiengesellschaft (OTCMKTS: DLAKY - Free Report ) operates as an aviation company in Germany and internationally. It operates through Passenger Airline Group, Logistics, MRO, and Catering segments. Deutsche Lufthansa has a Zacks Rank #1 and a VGM Score of 'A.' The Zacks Consensus Estimate for its current year earnings increased 4.9% over the last 60 days. Over the last three months, Deutsche Lufthansa's stock recorded an average return of 25.3%. You can see the complete list of today's Zacks #1 Rank stocks here .
International Consolidated Airlines Group, S.A. (OTCMKTS: ICAGY - Free Report ) engages in the provision of passenger and cargo transportation services in the U.K., Spain, the U.S. and rest of the world. The company sports a Zacks Rank #1 and a VGM Score of 'A.' The Zacks Consensus Estimate for its current year earnings rose 9.5% over the last 30 days. Over the past three months, International Consolidated Airlines' shares recorded an average return of 26.2%.
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Strong Stocks that Should Be in the News
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American Airlines Group, Inc. (AAL): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
LATAM Airlines Group S.A. (LFL): Free Stock Analysis Report
Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report
International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include American Airlines Group Inc. (NASDAQ: AAL - Free Report ), SkyWest, Inc. (NASDAQ: SKYW - Free Report ), Hawaiian Holdings, Inc. (NASDAQ: HA - Free Report ), LATAM Airlines Group S.A. (NYSE: LFL - Free Report ), Deutsche Lufthansa Aktiengesellschaft (OTCMKTS: DLAKY - Free Report ) and International Consolidated Airlines Group, S.A. (OTCMKTS: ICAGY - Free Report ). Since his public announcement, shares of Delta, American Airlines Group Inc. (NASDAQ: AAL - Free Report ), Southwest and United jumped 6%, 7%, 13% and 14%, respectively. Get the full Report on AAL - FREE Get the full Report on SKYW - FREE Get the full Report on HA - FREE Get the full Report on LFL - FREE Get the full Report on DLAKY - FREE Get the full Report on ICAGY - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include American Airlines Group Inc. (NASDAQ: AAL - Free Report ), SkyWest, Inc. (NASDAQ: SKYW - Free Report ), Hawaiian Holdings, Inc. (NASDAQ: HA - Free Report ), LATAM Airlines Group S.A. (NYSE: LFL - Free Report ), Deutsche Lufthansa Aktiengesellschaft (OTCMKTS: DLAKY - Free Report ) and International Consolidated Airlines Group, S.A. (OTCMKTS: ICAGY - Free Report ). Get the full Report on AAL - FREE Get the full Report on SKYW - FREE Get the full Report on HA - FREE Get the full Report on LFL - FREE Get the full Report on DLAKY - FREE Get the full Report on ICAGY - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report LATAM Airlines Group S.A. (LFL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include American Airlines Group Inc. (NASDAQ: AAL - Free Report ), SkyWest, Inc. (NASDAQ: SKYW - Free Report ), Hawaiian Holdings, Inc. (NASDAQ: HA - Free Report ), LATAM Airlines Group S.A. (NYSE: LFL - Free Report ), Deutsche Lufthansa Aktiengesellschaft (OTCMKTS: DLAKY - Free Report ) and International Consolidated Airlines Group, S.A. (OTCMKTS: ICAGY - Free Report ). Get the full Report on AAL - FREE Get the full Report on SKYW - FREE Get the full Report on HA - FREE Get the full Report on LFL - FREE Get the full Report on DLAKY - FREE Get the full Report on ICAGY - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report LATAM Airlines Group S.A. (LFL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include American Airlines Group Inc. (NASDAQ: AAL - Free Report ), SkyWest, Inc. (NASDAQ: SKYW - Free Report ), Hawaiian Holdings, Inc. (NASDAQ: HA - Free Report ), LATAM Airlines Group S.A. (NYSE: LFL - Free Report ), Deutsche Lufthansa Aktiengesellschaft (OTCMKTS: DLAKY - Free Report ) and International Consolidated Airlines Group, S.A. (OTCMKTS: ICAGY - Free Report ). Since his public announcement, shares of Delta, American Airlines Group Inc. (NASDAQ: AAL - Free Report ), Southwest and United jumped 6%, 7%, 13% and 14%, respectively. Get the full Report on AAL - FREE Get the full Report on SKYW - FREE Get the full Report on HA - FREE Get the full Report on LFL - FREE Get the full Report on DLAKY - FREE Get the full Report on ICAGY - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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5a83af73-3202-42f4-9bbf-21c00eaaee85
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7695.0
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2017-01-10 00:00:00 UTC
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Delta Q4’16 Earnings Preview: Capacity Reduction To Show Improvement In Unit Revenues, But Weigh Down The Top Line
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AAL
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https://www.nasdaq.com/articles/delta-q416-earnings-preview-capacity-reduction-show-improvement-unit-revenues-weigh-down
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The legacy carrier, Delta Air Lines ( DAL ), is due to announce is fourth quarter and full year 2016 results on 12th January, 2017. Being the first to announce its full year results, Delta Air Lines will set the tone for the aviation sector's earnings. Although the company disappointed in the third quarter, the fourth quarter is likely to redeem it on some level due to the capacity restriction and resultant improvement in unit revenues. However, the higher fuel prices and wages will continue to weigh down on earnings. In the following article we discuss some of the trends which are expected to be seen in the upcoming quarterly results.
Key Trends:
Delta's passenger revenue per available seat mile (PRASM) declined in the range of 4% - 5% in the first two quarters of 2016. The third quarter was even worse, when unit revenues were down as much as -6.8%, due to the technology outage episode in August that led to approximately 2,300 flight cancellations. However, as the year 2016 edged to a close, the headwinds related to yields began dissipating. As a result, the fall in unit revenues in November and December was also arrested. Consequently, the company expects fourth quarter unit revenues to fall less than the previous guidance of (3%)-(5%).
Delta's operations in Mexico, Cuba, and the Caribbean have helped it slightly offset the headwinds being seen in Atlantic and Pacific. The trend is expected to persist as the year closes. Entering into 2017, the company wants to renew its focus on the improving economy of Brazil, while growing its capacity in Latin America by 1% y-o-y. On the other hand, Pacific and Atlantic routes will continue to weigh down Delta's performance. Due to the overcapacity built up in the region, industry-wide, the company expects to continue to see negative PRASM in the Pacific region, even in 2017.
The company's system-wide capacity should come in the range of its previous guidance of approximately 2%. The moderation in capacity was done in order to improve its unit revenue, by streamlining capacity over unprofitable routes. Although the reduction in capacity is expected to help unit revenues, it will play an offsetting role by restricting revenue growth. The situation will be further worsened by the 30 bps decline in occupancy rate in 2016.
We have recently seen some recovery in oil prices , owing to the OPEC countries' decision to restrict their combined oil output to 1.2 million barrels of oil per day (Mbpd) over the coming months. In addition to this, the Non-OPEC members, such as Russia, also supported the OPEC's move by offering to bring down their production by roughly 600,000 barrels of oil per day. In response to the news, crude oil prices have shot up by almost 20% over the last one month, reinforcing to investors that the commodity markets are on the path of recovery. The increase is likely to impact the airline's fuel expenditure, but not as much as earlier, as the prices continue to be much lower than the historical $100 per barrel.
Delta's world class maintenance facility in Atlanta and optimization of its routes and fleet, has caused the carrier to achieve a 1.5% improvement in its fuel consumption and ensure that the its maintenance costs are the lowest in the industry. Consequently, the carrier has been able to save $100 million in fuel costs in 2016.
Delta's dividend payment will continue to increase in 2016, even as it pursues an aggressive share buyback program to support earnings. This is likely in response to the increasing wages and fuel expenditure. The company is expected to complete its planned $5 billion share repurchase program by mid-2017.
Have more questions about Delta Air Lines ( DAL )? See the links below:
What Are The Measures Undertaken By Delta To Keep Its Fuel Costs Under Control?
Delta's Path Towards Positive Unit Revenues
How Did Delta Perform Operationally In November?
How Did Delta Perform Operationally In October?
How Has Delta Managed Its Capacity In The Face Of Rising Competition & Increasing Pressure On Unit Revenues?
Delta Q3'16 Earnings Review: Continued Headwinds In Unit Revenues, Despite Reduction In Capacity
Delta Q3'16 Earnings Preview: Technology Outage Episode, Headwinds In Trans-Atlantic Region To Be A Drag
How Did Delta Perform Operationally In September?
Delta's Pending Pilot Contract To Sabotage Southwest's Recently Approved Labor Agreement
How Did Delta Perform Operationally In August?
What Is The Impact Of Flight Delays?
Delta Versus JetBlue: Expansion Into Boston And Its Effect On Unit Revenues
How Will Delta Air Lines Utilize Its Cash Flows?
Delta Airlines Re-Fleeting Program: How Will It Help?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The legacy carrier, Delta Air Lines ( DAL ), is due to announce is fourth quarter and full year 2016 results on 12th January, 2017. The third quarter was even worse, when unit revenues were down as much as -6.8%, due to the technology outage episode in August that led to approximately 2,300 flight cancellations. In addition to this, the Non-OPEC members, such as Russia, also supported the OPEC's move by offering to bring down their production by roughly 600,000 barrels of oil per day.
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The legacy carrier, Delta Air Lines ( DAL ), is due to announce is fourth quarter and full year 2016 results on 12th January, 2017. Consequently, the company expects fourth quarter unit revenues to fall less than the previous guidance of (3%)-(5%). Delta Q3'16 Earnings Review: Continued Headwinds In Unit Revenues, Despite Reduction In Capacity Delta Q3'16 Earnings Preview: Technology Outage Episode, Headwinds In Trans-Atlantic Region To Be A Drag How Did Delta Perform Operationally In September?
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Delta's Path Towards Positive Unit Revenues How Did Delta Perform Operationally In November? Delta Q3'16 Earnings Review: Continued Headwinds In Unit Revenues, Despite Reduction In Capacity Delta Q3'16 Earnings Preview: Technology Outage Episode, Headwinds In Trans-Atlantic Region To Be A Drag How Did Delta Perform Operationally In September? Delta Versus JetBlue: Expansion Into Boston And Its Effect On Unit Revenues How Will Delta Air Lines Utilize Its Cash Flows?
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Although the company disappointed in the third quarter, the fourth quarter is likely to redeem it on some level due to the capacity restriction and resultant improvement in unit revenues. Consequently, the company expects fourth quarter unit revenues to fall less than the previous guidance of (3%)-(5%). Delta Q3'16 Earnings Review: Continued Headwinds In Unit Revenues, Despite Reduction In Capacity Delta Q3'16 Earnings Preview: Technology Outage Episode, Headwinds In Trans-Atlantic Region To Be A Drag How Did Delta Perform Operationally In September?
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34b1b1ac-9515-478a-97e0-22f7aed54833
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7696.0
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2017-01-10 00:00:00 UTC
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Noteworthy Tuesday Option Activity: AAL, TSO, AET
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AAL
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-aal-tso-aet-2017-01-10
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 49,767 contracts have traded so far, representing approximately 5.0 million underlying shares. That amounts to about 87.9% of AAL's average daily trading volume over the past month of 5.7 million shares. Especially high volume was seen for the $40 strike call option expiring January 20, 2017 , with 17,309 contracts trading so far today, representing approximately 1.7 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $40 strike highlighted in orange:
Tesoro Corporation (Symbol: TSO) saw options trading volume of 15,710 contracts, representing approximately 1.6 million underlying shares or approximately 76.4% of TSO's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $97.50 strike call option expiring January 20, 2017 , with 4,857 contracts trading so far today, representing approximately 485,700 underlying shares of TSO. Below is a chart showing TSO's trailing twelve month trading history, with the $97.50 strike highlighted in orange:
And Aetna Inc. (Symbol: AET) saw options trading volume of 17,965 contracts, representing approximately 1.8 million underlying shares or approximately 73% of AET's average daily trading volume over the past month, of 2.5 million shares. Particularly high volume was seen for the $130 strike call option expiring February 17, 2017 , with 3,512 contracts trading so far today, representing approximately 351,200 underlying shares of AET. Below is a chart showing AET's trailing twelve month trading history, with the $130 strike highlighted in orange:
For the various different available expirations for AAL options , TSO options , or AET options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $40 strike call option expiring January 20, 2017 , with 17,309 contracts trading so far today, representing approximately 1.7 million underlying shares of AAL. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 49,767 contracts have traded so far, representing approximately 5.0 million underlying shares. That amounts to about 87.9% of AAL's average daily trading volume over the past month of 5.7 million shares.
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Especially high volume was seen for the $40 strike call option expiring January 20, 2017 , with 17,309 contracts trading so far today, representing approximately 1.7 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $40 strike highlighted in orange: Tesoro Corporation (Symbol: TSO) saw options trading volume of 15,710 contracts, representing approximately 1.6 million underlying shares or approximately 76.4% of TSO's average daily trading volume over the past month, of 2.1 million shares. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 49,767 contracts have traded so far, representing approximately 5.0 million underlying shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 49,767 contracts have traded so far, representing approximately 5.0 million underlying shares. Below is a chart showing AAL's trailing twelve month trading history, with the $40 strike highlighted in orange: Tesoro Corporation (Symbol: TSO) saw options trading volume of 15,710 contracts, representing approximately 1.6 million underlying shares or approximately 76.4% of TSO's average daily trading volume over the past month, of 2.1 million shares. That amounts to about 87.9% of AAL's average daily trading volume over the past month of 5.7 million shares.
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Especially high volume was seen for the $40 strike call option expiring January 20, 2017 , with 17,309 contracts trading so far today, representing approximately 1.7 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $40 strike highlighted in orange: Tesoro Corporation (Symbol: TSO) saw options trading volume of 15,710 contracts, representing approximately 1.6 million underlying shares or approximately 76.4% of TSO's average daily trading volume over the past month, of 2.1 million shares. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 49,767 contracts have traded so far, representing approximately 5.0 million underlying shares.
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511ffb4b-58b3-44ea-b7ee-a07e87c39e29
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7697.0
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2017-01-09 00:00:00 UTC
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Delta Air Lines (DAL) Q4 Earnings: Is a Surprise in Store?
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-dal-q4-earnings%3A-is-a-surprise-in-store-2017-01-09
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nan
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nan
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Delta Air Lines, Inc ( DAL ) is scheduled to report fourth-quarter 2016 results on Jan 12, 2017, before the market opens.
This Atlanta, GA-based carrier reported better-than-expected earnings in the third quarter of 2016. In fact, the carrier outpaced earnings estimates in three of the last four quarters with an average earnings beat of 2.01%. It remains to be seen how the company performs this quarter.
Earnings Whispers
Our proven model shows that Deltais likely to beat earnings because it has the perfect combination of two key ingredients.
Zacks ESP: The Earnings ESP for Delta is +1.24%%. This is because the Most Accurate estimate stands at 82 cents while the Zacks Consensus Estimate is pegged at 81 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: The carrier carries a Zacks Rank #3 (Hold). Please note that stocks with Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. You can see the complete list of today's Zacks #1 Rank stocks here.
Conversely, we caution against Sell-rated stocks (Zacks Rank #4 and 5) going into an earnings announcement, especially if the company has seen negative estimate revisions.
The combination of Delta's favorable Zacks Rank and +1.24% ESP makes us reasonably confident of a positive earnings beat on Jan 12.
Delta Air Lines, Inc. Price and EPS Surprise
Delta Air Lines, Inc. Price and EPS Surprise | Delta Air Lines, Inc. Quote
Factors at Play
Delta posted impressive traffic results for December with an increment in load factor. Moreover, the company's completion factor and on-time performance was commendable. We are positive on the company's initiation of flight services to Cuba. We are also impressed with the company's shareholder returns policy and its efforts to finalize important employee contracts. The company also expects Passenger Revenue per Available Seat Mile (PRASM) to decline in the range of 2.5% to 3% for the fourth quarter from the earlier guidance of a decline of 3% to 5% issued in Oct 2016.
Delta also faces intense competition from peers like American Airlines Group In. AAL and United Continental Holdings Inc. UAL . Per the company's guidance, cost is expected to be up for the fourth quarter.
We note that the company's stock has outperformed the broader Zacks categorized Transportation-Airlines industry. The company gained 30.33%, while the industry gained 29.43% over the same period.
A Stock That Warrantsa Look
Delta is not the only company looking up this time around. Here is an airlines stock that you may want to consider as our model shows that it has the right combination for an earnings beat this quarter:
JetBlue Airways Corp. JBLU has a Zacks Rank #3 and an Earnings ESP of +4.26%. The company is expected to report fourth-quarter results on Jan 26.
Zacks' Top Investment Ideas for Long-Term Profit
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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAL and United Continental Holdings Inc. UAL . Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta Air Lines, Inc ( DAL ) is scheduled to report fourth-quarter 2016 results on Jan 12, 2017, before the market opens.
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Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. AAL and United Continental Holdings Inc. UAL . Delta Air Lines, Inc. Price and EPS Surprise Delta Air Lines, Inc. Price and EPS Surprise | Delta Air Lines, Inc. Quote Factors at Play Delta posted impressive traffic results for December with an increment in load factor.
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Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. AAL and United Continental Holdings Inc. UAL . Delta Air Lines, Inc. Price and EPS Surprise Delta Air Lines, Inc. Price and EPS Surprise | Delta Air Lines, Inc. Quote Factors at Play Delta posted impressive traffic results for December with an increment in load factor.
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Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. AAL and United Continental Holdings Inc. UAL . The combination of Delta's favorable Zacks Rank and +1.24% ESP makes us reasonably confident of a positive earnings beat on Jan 12.
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12ddd30c-3ba0-4712-83e0-ece5974dc94d
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7698.0
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2017-01-09 00:00:00 UTC
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Bartosiak: Trading Delta (DAL) Earnings with Options
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AAL
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https://www.nasdaq.com/articles/bartosiak-trading-delta-dal-earnings-options-2017-01-09
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nan
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nan
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On Thursday, January 12 th , Delta Air Lines DAL will release its fourth quarter earnings results before the bell. The company is a Zacks Rank 3 (Hold), and have a Value, Growth, and Momentum score of B.
Dave will look at Delta's past earnings, take a look at what is currently going on with the company, and give us his thoughts on their upcoming earnings announcement.
Furthermore, Dave will uncover some potential options trades for investors looking to make a play on Delta ahead of earnings.
Delta in Focus
Delta is America's fastest growing international carrier. Delta Air Lines offers customers service to more destinations than any global airline with Delta and Delta Connection carrier service. Delta has added more international capacity than all other U.S. airlines combined and is the leader across the Atlantic.
Delta faces tough competition within the airline sector . Delta's biggest competitors domestically and internationally include American Airlines AAL , and United-Continental Airlines UAL .
Delta is expected to report earnings at $0.81 per share . Delta reported earnings last quarter at $1.70 per share, beating the Zacks Consensus Estimate by 3.03%. Delta has an average surprise of 2.01% over the last 4 quarters.
Delta Air Lines, Inc. Price and EPS Surprise
Delta Air Lines, Inc. Price and EPS Surprise | Delta Air Lines, Inc. Quote
Bottom Line
How should investors play Delta ahead of their earnings report? For insights on the best options trades, then tune in at 1:00pm to see David's thoughts.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Delta's biggest competitors domestically and internationally include American Airlines AAL , and United-Continental Airlines UAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. On Thursday, January 12 th , Delta Air Lines DAL will release its fourth quarter earnings results before the bell.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta's biggest competitors domestically and internationally include American Airlines AAL , and United-Continental Airlines UAL . Delta Air Lines, Inc. Price and EPS Surprise Delta Air Lines, Inc. Price and EPS Surprise | Delta Air Lines, Inc. Quote Bottom Line How should investors play Delta ahead of their earnings report?
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta's biggest competitors domestically and internationally include American Airlines AAL , and United-Continental Airlines UAL . Delta Air Lines offers customers service to more destinations than any global airline with Delta and Delta Connection carrier service.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta's biggest competitors domestically and internationally include American Airlines AAL , and United-Continental Airlines UAL . Furthermore, Dave will uncover some potential options trades for investors looking to make a play on Delta ahead of earnings.
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a9eadce6-5304-409c-811c-f8686dfd8bef
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7699.0
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2017-01-09 00:00:00 UTC
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How Will United Continental’s Initiatives To Promote Operational Efficiency Contribute To Its Earnings?
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AAL
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https://www.nasdaq.com/articles/how-will-united-continentals-initiatives-promote-operational-efficiency-contribute-its
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nan
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nan
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As a part of its five-year plan, United Continental ( UAL ) CEO Oscar Munoz has laid down a comprehensive path to improve the carrier's long-term earnings through a number of strategic initiatives, aimed at commercial enhancements, and improving cost, and operational efficiency. The new strategy is expected to generate $4.8 billion incremental earnings by 2020 for United. In earlier articles we have discussed United's plan to optimize its network potential, by shifting the focus back to domestic routes (adding $1.45 billion to the company's earnings by 2020); re-fleeting and upgauging initiatives to be undertaken to promote efficiency; and the benefits to be accrued from segmentation and fee bundling.
In this article, we talk about some of the operational initiatives the company plans to undertake in order to offset the recent pay hikes it has granted its employees and pilots.
Despite weakness in its top line, United Continental managed to reign in its fuel and non-fuel expenses. Furthermore, the company has showcased a significant improvement in reliability. For instance, the mishandled bag ratio has gone down, the number of canceled flights has consistently decreased, and United's on-time arrival and departure performance has shown sustained improvement. However, going forward, the company expects its costs, including fuel, to increase slightly owing to the recently ratified labor deals and rising crude oil prices .
In order to offset the affect of rising wages and fuel costs, the company sees opportunity to improve operational efficiency on the following metrics:
Aircraft Turnaround Time
Aircraft turnaround time is defined as the time required to unload an airplane after its arrival at the gate and to prepare it for departure again. Given the exorbitant airport charges and rising fuel charges levied on airlines, the aircraft turnaround time becomes important for the company to cut costs. By reducing its turnaround time to 10 minutes, the low cost carrier, Southwest Airlines, managed to turnaround its fortunes. Even now, Southwest's turnaround time is the lowest in the industry at approximately 25 minutes. United aims to cut its turnaround time by providing more resources to arriving aircraft, such that, passengers and baggage are unloaded, the plane is cleaned and restocked, and the new passengers and bags are boarded, all in the set time limit.
Aircraft Maintenance Process
On the other hand, Delta has a world class maintenance facility in Atlanta that has ensured that the carrier's maintenance costs are the lowest in the industry. Consequently, United is trying to refine its maintenance process through a three pronged strategy, which includes redesigning maintenance programs, improving the supply chain, and modifying reliability.
Cancellations and Long Delays
Flight delays and cancellations not only cause inconvenience to passengers, but also cost the carriers billions of dollars. The Federal Aviation Administration (FAA) considers a flight to be delayed when it is 15 minutes later than its scheduled time, while a cancellation occurs when the airline does not operate the flight at all for a certain reason.
By resulting in increased travel time and increased expenses on food and lodging, they cause stress among passengers. Further, they disrupt the purpose of air travel - rapid, affordable and safe - and make the passengers distrust airlines. On the other hand, airlines suffer from extra crew costs, costs associated with accommodating disrupted passengers, and aircraft re-positioning, as airline fleet and crew schedules are largely based on the scheduled times. To reduce these costs, United is working on improving fleet health and improve the durability of the flight schedule.
Focus on Customers
United has put in place a new organization structure which increases the focus on customers. A new position of Chief Customer officer has been introduced, who would be responsible for ensuring operational reliability and customer experience. Furthermore, the company wants to align all its policies and procedures such that they enhance customer experience.
Accretion To Earnings
United expects its initiatives to promote operational efficiency to become accretive to earnings in 2016 itself. The addition to earnings from these initiatives is as follows:
Have more questions about United Continental ( UAL )? See the links below:
How Will United Continental Benefit From Segmentation And Fee Bundling?
How Does United Continental Plan To Optimize Its Network Potential?How Will United Continental's Re-fleeting Initiatives Contribute To Its Earnings?
United Continental Q3'16 Earnings Review: Unit Revenues Remain Under The Pump
United Continental Q3'16 Earnings Preview: Capacity Cuts To Partially Offset The Decline In PRASM
How Did United Continental Perform Operationally In September?
What Is United Continental's New Fleet Plan?
Is China The New Growth Market For United Continental?
How Did United Continental Perform Operationally In August?
Why Are Airline Manufacturers Witnessing A Slowdown In Commercial Orders?
How Is United Continental Driving Cost Efficiency?
What Has Led To A 15% Fall In United's Stock Price Since The Beginning Of The Year?
Is A Turnaround In The Cards For United Continental?
How Will United's Equity Value Be Impacted If The Crude Oil Prices Rebound To $100 Per Barrel By 2018?
How Will United's Equity Value Be Impacted If The Crude Oil Prices Average At $50 Per Barrel In 2018?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for United Continental
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In earlier articles we have discussed United's plan to optimize its network potential, by shifting the focus back to domestic routes (adding $1.45 billion to the company's earnings by 2020); re-fleeting and upgauging initiatives to be undertaken to promote efficiency; and the benefits to be accrued from segmentation and fee bundling. For instance, the mishandled bag ratio has gone down, the number of canceled flights has consistently decreased, and United's on-time arrival and departure performance has shown sustained improvement. However, going forward, the company expects its costs, including fuel, to increase slightly owing to the recently ratified labor deals and rising crude oil prices .
|
Given the exorbitant airport charges and rising fuel charges levied on airlines, the aircraft turnaround time becomes important for the company to cut costs. On the other hand, airlines suffer from extra crew costs, costs associated with accommodating disrupted passengers, and aircraft re-positioning, as airline fleet and crew schedules are largely based on the scheduled times. Mid & Small Cap | European Large & Mid Cap More Trefis Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In order to offset the affect of rising wages and fuel costs, the company sees opportunity to improve operational efficiency on the following metrics: Aircraft Turnaround Time Aircraft turnaround time is defined as the time required to unload an airplane after its arrival at the gate and to prepare it for departure again. How Does United Continental Plan To Optimize Its Network Potential?How Will United Continental's Re-fleeting Initiatives Contribute To Its Earnings? United Continental Q3'16 Earnings Review: Unit Revenues Remain Under The Pump United Continental Q3'16 Earnings Preview: Capacity Cuts To Partially Offset The Decline In PRASM How Did United Continental Perform Operationally In September?
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By reducing its turnaround time to 10 minutes, the low cost carrier, Southwest Airlines, managed to turnaround its fortunes. How Does United Continental Plan To Optimize Its Network Potential?How Will United Continental's Re-fleeting Initiatives Contribute To Its Earnings? What Is United Continental's New Fleet Plan?
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b33ce461-f917-474d-bf3f-9d208754defd
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