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7800.0
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2016-10-12 00:00:00 UTC
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What Will the Q3 Earnings Season Bring?
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AAL
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https://www.nasdaq.com/articles/what-will-q3-earnings-season-bring-2016-10-12
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nan
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nan
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Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actuals and estimates for the current and following periods, please click here>>>
The Q3 earnings season ramps up in the coming days, with many in the market looking for this reporting cycle to confirm the modest improvements in the overall earnings picture in the preceding earnings season. Earnings growth was negative in Q2 - the 5th quarter in a row of earnings declines for the S&P 500 index - and current expectations are for a -2.9% decline in Q3. But the expectation is that the worst is behind us now, with the picture expected to improve in the coming periods. Driving this favorable view are three key points.
First, the magnitude of negative revisions that Q3 estimates suffered were lower compared to what we had seen in the preceding quarters. Estimates for Q3 came down as companies reported Q2 results and guided lower, with expectations of earnings growth for the S&P 500 index dropping from an essentially flat reading at the beginning of July to the current -2.9%. This is a lower drop than we became used to seeing in the comparable periods in the preceding quarters.
Second, the -2.9% decline in Q3 earnings on +1.2% higher revenues will be the lowest decline rate expected at the start of the season. At the comparable stage in the Q2 earnings season, earnings growth for the S&P 500 index was expected to be -6.2%, which actually turned out to be -2.8%. We had similarly bigger decline rates expected at the start of earnings season in Q1 and the quarters prior to that, with actual earnings growth rates coming in better than pre-season expectations by about +2% to +3%. If Q3 results follow this trend, the finally growth tally will most likely be close to a flat finish, even in positive territory.
Third, the Energy sector still remains a big drag on the aggregate growth picture, with total earnings for the sector expected to be down -68.3% from the same period last year. Excluding the Energy sector, total earnings for the S&P 500 would be modestly in positive territory, up +0.3%. The Energy sector still has plenty of challenges, but the tyranny of tough comparisons is starting to fade. It is a smaller burden in Q3 than was the case in either of the preceding two quarters and comparisons are expected to turn positive in the following earnings season.
Standout Sectors this Earnings season
Earnings growth is expected to be negative for half of the 16 Zacks sectors, led by Energy (- 68.3%), Transportation (- 21.4%), and Autos (- 18.5%). The Transportation decline is primarily concentrated in the legacy air carriers, particularly American Airlines ( AAL ) and United Continental ( UAL ) that are experiencing higher costs following recent labor contract awards. The Auto sector's growth issue is primarily due to Ford ( F ), which guided lower the last earnings season.
Growth is expected to be negative for the Technology sector as well, with total earnings for the sector expected to be down -1.8% from the same period last year on -1.1% lower revenues. The Tech growth challenge is primarily concentrated in Apple ( AAPL ) whose September-quarter earnings are expected to be down -20.7% on -9.6% lower revenues. Excluding Apple, the sector's Q3 earnings would be up +3.0% on +0.5% higher revenues.
On the positive side of the ledger, we have Construction (+6.3% earnings growth in Q3), Business Services (+7.1%), Retail (+4.4%), Utilities (+4.8%) and Finance (+4%).
Estimates Beyond Q3
The chart below shows Q3 growth expectations contrasted with what was actually achieved in the preceding four quarters and estimates for the following four periods. Full-year 2016 earnings growth expectations are now negative, similar to what we saw the year before.
As you can see, positive growth is expected to resume in Q4 and ramp up in the following quarters. Earnings growth is expected to be in double-digits in 2017 and the following year.
Easier comparisons for the Energy sector arrive in Q4, when the sector's earnings growth turns positive. But the expected growth in Q4 and beyond isn't solely a function of easy comparisons for the Energy sector - the expectation is for positive momentum from a broad cross section of sectors. Those expectations will most likely need to come down. But it will be interesting to see to what extent they will have to come down.
Note: Sheraz Mian manages the Zacks equity research department. He is an acknowledged earnings expert whose commentaries and analyses appear on Zacks.com and in the print and electronic media. His weekly earnings related articles includeEarnings TrendsandEarnings Preview. He manages the Zacks Top 10andFocus Listportfolios and writes the Weekly Market Analysis article for Zacks Premiumsubscribers.
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
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FORD MOTOR CO (F): Free Stock Analysis Report
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AMER AIRLINES (AAL): Free Stock Analysis Report
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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 Transportation decline is primarily concentrated in the legacy air carriers, particularly American Airlines ( AAL ) and United Continental ( UAL ) that are experiencing higher costs following recent labor contract awards. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report FORD MOTOR CO (F): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Estimates for Q3 came down as companies reported Q2 results and guided lower, with expectations of earnings growth for the S&P 500 index dropping from an essentially flat reading at the beginning of July to the current -2.9%.
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Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report FORD MOTOR CO (F): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The Transportation decline is primarily concentrated in the legacy air carriers, particularly American Airlines ( AAL ) and United Continental ( UAL ) that are experiencing higher costs following recent labor contract awards. We had similarly bigger decline rates expected at the start of earnings season in Q1 and the quarters prior to that, with actual earnings growth rates coming in better than pre-season expectations by about +2% to +3%.
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The Transportation decline is primarily concentrated in the legacy air carriers, particularly American Airlines ( AAL ) and United Continental ( UAL ) that are experiencing higher costs following recent labor contract awards. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report FORD MOTOR CO (F): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We had similarly bigger decline rates expected at the start of earnings season in Q1 and the quarters prior to that, with actual earnings growth rates coming in better than pre-season expectations by about +2% to +3%.
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The Transportation decline is primarily concentrated in the legacy air carriers, particularly American Airlines ( AAL ) and United Continental ( UAL ) that are experiencing higher costs following recent labor contract awards. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report FORD MOTOR CO (F): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Standout Sectors this Earnings season Earnings growth is expected to be negative for half of the 16 Zacks sectors, led by Energy (- 68.3%), Transportation (- 21.4%), and Autos (- 18.5%).
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9706eeca-e7bf-44af-9e35-38d17480420e
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7801.0
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2016-10-11 00:00:00 UTC
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Nasdaq 100 Movers: ILMN, SWKS
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-ilmn-swks-2016-10-11
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nan
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nan
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In early trading on Tuesday, shares of Skyworks Solutions topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.2%. Year to date, Skyworks Solutions registers a 6.6% gain.
And the worst performing Nasdaq 100 component thus far on the day is Illumina, trading down 25.1%. Illumina is lower by about 27.8% looking at the year to date performance.
Two other components making moves today are Seagate Technology, trading down 5.3%, and American Airlines Group, trading up 1.6% on the day.
VIDEO: Nasdaq 100 Movers: ILMN, SWKS
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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Year to date, Skyworks Solutions registers a 6.6% gain. And the worst performing Nasdaq 100 component thus far on the day is Illumina, trading down 25.1%. VIDEO: Nasdaq 100 Movers: ILMN, SWKS 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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Year to date, Skyworks Solutions registers a 6.6% gain. VIDEO: Nasdaq 100 Movers: ILMN, SWKS 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 early trading on Tuesday, shares of Skyworks Solutions topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.2%. And the worst performing Nasdaq 100 component thus far on the day is Illumina, trading down 25.1%. VIDEO: Nasdaq 100 Movers: ILMN, SWKS 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 early trading on Tuesday, shares of Skyworks Solutions topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.2%. And the worst performing Nasdaq 100 component thus far on the day is Illumina, trading down 25.1%. VIDEO: Nasdaq 100 Movers: ILMN, SWKS 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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56d5d880-6489-48e3-856b-cfa18da05cf8
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7802.0
|
2016-10-11 00:00:00 UTC
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Will Earnings Growth Resume After the Q3 Earnings Season?
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AAL
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https://www.nasdaq.com/articles/will-earnings-growth-resume-after-q3-earnings-season-2016-10-11
|
nan
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nan
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Earnings growth is expected to be negative territory in the Q3 earnings season as well, which will be the 6 th quarter in a row of earnings declines for the S&P 500 index. Total earnings for the index are expected to be down -3% from the same period last year on +1.2% higher revenues.
The Energy sector continues to be a big drag in Q3 as well, with total earnings for the sector expected to decline -68.2% from the same period last year on -14.3% lower revenues. Excluding the Energy sector, total earnings for the rest of the S&P 500 index would be up +0.3% from the same period last year.
Other sectors with big declines in Q3 include Transportation (earnings expected to decline -21.6%) and Autos (-18.5%). Overall, half of the 16 Zacks sectors are expected to produce lower earnings in Q3 relative to the year-earlier period.
The Transportation sector's -21.6% earnings decline on +0.3% higher revenues is primarily due to the air carriers like American Airlines (AAL) and United Continental (UAL) whose profits have suffered as a result of higher labor expenses following recent contract awards. The Auto sector's weak growth in the quarter is primarily concentrated in Ford (F), whose earnings are expected to be roughly half of the year-earlier level.
For the Technology sector, Q3 earnings are expected to be -1.8% below the year-earlier level on -1.1% lower revenues, with Apple (AAPL) as the big drag on the sector's growth picture. Apple's Q3 earnings are expected to be down 20.9% from the same period last year on -9.6% lower revenues. Excluding the Apple drag, the Tech sector's Q3 earnings would be up +3% on +0.5% higher revenues.
On the positive side, Business Services (earnings growth of +7%), Construction (+6.4%), Utilities (+4.6%) and Finance (+4%) are some of the sectors expected to produce modestly higher earnings relative to the same period last year.
Beyond Q3, earnings growth is expected to turn positive in the last quarter of the year, with total earnings for the S&P 500 index expected to be up +5.3% from the same period. A big contributor to the Q4 growth is easy comparisons for the Energy sector whose growth turns positive after many quarters of declines. There is positive growth in Q4 beyond the Energy sector, with many sectors like Finance, Technology, Basic Materials and Construction contributing to the growth resumption.
It will be interesting to see how much these Q4 expectations come down as companies report Q3 results and provide guidance.
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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.
|
The Transportation sector's -21.6% earnings decline on +0.3% higher revenues is primarily due to the air carriers like American Airlines (AAL) and United Continental (UAL) whose profits have suffered as a result of higher labor expenses following recent contract awards. Click to get this free report FORD MOTOR CO (F): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The Auto sector's weak growth in the quarter is primarily concentrated in Ford (F), whose earnings are expected to be roughly half of the year-earlier level.
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Click to get this free report FORD MOTOR CO (F): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The Transportation sector's -21.6% earnings decline on +0.3% higher revenues is primarily due to the air carriers like American Airlines (AAL) and United Continental (UAL) whose profits have suffered as a result of higher labor expenses following recent contract awards. Overall, half of the 16 Zacks sectors are expected to produce lower earnings in Q3 relative to the year-earlier period.
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Click to get this free report FORD MOTOR CO (F): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The Transportation sector's -21.6% earnings decline on +0.3% higher revenues is primarily due to the air carriers like American Airlines (AAL) and United Continental (UAL) whose profits have suffered as a result of higher labor expenses following recent contract awards. The Energy sector continues to be a big drag in Q3 as well, with total earnings for the sector expected to decline -68.2% from the same period last year on -14.3% lower revenues.
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The Transportation sector's -21.6% earnings decline on +0.3% higher revenues is primarily due to the air carriers like American Airlines (AAL) and United Continental (UAL) whose profits have suffered as a result of higher labor expenses following recent contract awards. Click to get this free report FORD MOTOR CO (F): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Total earnings for the index are expected to be down -3% from the same period last year on +1.2% higher revenues.
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b017b1e6-8151-4af0-884c-0df06df905e1
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7803.0
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2016-10-11 00:00:00 UTC
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American Airlines and United Continental Soar Past Forecasts
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AAL
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https://www.nasdaq.com/articles/american-airlines-and-united-continental-soar-past-forecasts-2016-10-11
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nan
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nan
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For more than a year, airline investors have been waiting -- not very patiently -- for American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) to stem a series of steep unit revenue declines. Quarter after quarter, executives at the two legacy carriers have pushed back their forecasts for when unit revenue would start to improve.
However, the long-awaited recovery appears to be taking hold. On Tuesday morning, American Airlines and United Continental both reported that unit revenue came in better than expected last month. Considering that Delta Air Lines (NYSE: DAL) also saw a solid sequential unit revenue improvement in September, it appears that the U.S. legacy carriers are finally on the right track.
United Continental's unit revenue came in better than expected last month. Image source: The Motley Fool.
Delta delivers better results in September
On Delta Air Lines' Q2earnings call management boldly proclaimed that unit revenue trends would improve dramatically in September relative to July and August.
August turned out even worse than initially expected, largely due to Delta's technology outage during the month. However, Delta's unit revenue trajectory did improve significantly last month, as promised. Passenger revenue per available seat mile (PRASM) declined just 3% in September , compared to a 7% drop in July and a 9.5% decline in August.
American and United also see big improvement
Common factors such as GDP growth and industry capacity have a big impact on revenue trends for all three legacy carriers. Thus, given that Delta saw a big sequential PRASM improvement during September, it was reasonable to expect similar strength from its peers.
American Airlines and United Continental do not report unit revenue on a monthly basis like Delta. As a result, it's not possible to make a direct comparison of the sequential unit revenue improvements at each carrier. Nevertheless, it is clear that American and United delivered solid revenue results in September.
On Tuesday, American Airlines reported that revenue per available seat mile (RASM) declined about 2%-3% year over year in Q3. By contrast, management had initially projected that RASM would decline 3.5%-5.5% for the quarter. Even just a month ago, American expected to record a 3%-5% Q3 RASM decline. To move beyond the high end of that forecast range, American must have posted very strong revenue results last month: possibly even a return to RASM growth .
American Airlines may have returned to unit revenue growth last month. Image source: American Airlines.
Meanwhile, United Continental reported that PRASM fell 5.5%-6% for Q3. That represented the high end of its original guidance range, which called for PRASM to decline 5.5%-7.5%. The company stated that close-in bookings for September came in better than expected, "driven by the timing of certain holidays."
A good sign for the fall?
Thus, unit revenue trends seem to have improved sequentially at all three legacy carriers last month. Looking forward to Q4, that's very good news, as it suggests that industry pricing discipline is starting to return. The recent rebound of jet fuel prices and slowing industry capacity growth should also support airlines' efforts to cut back on discounting.
Indeed, as long as air travel demand doesn't hit another air pocket in the next few months, it seems reasonable to expect airlines' Q4 unit revenue results to be roughly in line with their September performances. For Delta, that suggests a low-single-digit unit revenue decline. Based on United's positive remarks about September demand, a low-single-digit decline there also seems likely.
American Airlines looks like the big winner. Between the windfall from its new credit card deal, a sharp slowdown in capacity growth, and an improving macroeconomic picture in Brazil, American Airlines has a legitimate shot at returning to unit revenue growth this quarter.
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Adam Levine-Weinberg owns shares of United Continental Holdings and is long January 2017 $30 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 more than a year, airline investors have been waiting -- not very patiently -- for American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) to stem a series of steep unit revenue declines. Considering that Delta Air Lines (NYSE: DAL) also saw a solid sequential unit revenue improvement in September, it appears that the U.S. legacy carriers are finally on the right track. To move beyond the high end of that forecast range, American must have posted very strong revenue results last month: possibly even a return to RASM growth .
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For more than a year, airline investors have been waiting -- not very patiently -- for American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) to stem a series of steep unit revenue declines. Delta delivers better results in September On Delta Air Lines' Q2earnings call management boldly proclaimed that unit revenue trends would improve dramatically in September relative to July and August. On Tuesday, American Airlines reported that revenue per available seat mile (RASM) declined about 2%-3% year over year in Q3.
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For more than a year, airline investors have been waiting -- not very patiently -- for American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) to stem a series of steep unit revenue declines. On Tuesday morning, American Airlines and United Continental both reported that unit revenue came in better than expected last month. American Airlines and United Continental do not report unit revenue on a monthly basis like Delta.
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For more than a year, airline investors have been waiting -- not very patiently -- for American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) to stem a series of steep unit revenue declines. United Continental's unit revenue came in better than expected last month. American Airlines may have returned to unit revenue growth last month.
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eaebe7c3-108a-4fcc-94c2-059089e90b39
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7804.0
|
2016-10-11 00:00:00 UTC
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How Did Delta Perform Operationally In September?
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AAL
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https://www.nasdaq.com/articles/how-did-delta-perform-operationally-september-2016-10-11
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nan
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nan
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In the month of September 2016, the legacy carrier, Delta, saw its capacity increase slightly in domestic markets and shrink in international markets, in line with the company's guidance. Further, its passenger traffic also witnessed growth at 1.4%, while passengers boarded increased by 3.1%. This was in contrast to its performance in the month of August when the two metrics deteriorated. September's load factor, at 84.6%, was slightly down, due to the drop in demand over Atlantic routes. However, the fall in the carrier's unit revenues was curtailed to a low 3% as opposed to -9.5% in August 2016. Delta attributes the improvement to lower capacity levels, resulting in moderation on yields. However, Delta continues to face a supply-demand imbalance in the transatlantic region, which may prevent the turnaround of unit revenues to positive this year.
Have more questions about Delta Air Lines ( DAL )? See the links below:
How Will Delta Air Lines Utilize Its Cash Flows?
Delta Airlines Re-Fleeting Program: How Will It Help?
Why Has Trefis Lowered Delta's Price Estimate From $51 To $44 Per Share?
Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues
Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2'16
Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16
What Should We Expect From Delta's 1Q'16 Results?
How Did The Legacy Carriers Perform Operationally In January?
Why Did Delta's Operating Margin Soar In 2015?
Delta Air Lines: The Year 2015 In Review
How Will Delta's Revenue And EBITDA Grow Between 2015 and 2018?
How Has Delta's Revenue And EBITDA Changed Over The Last Five Years
What Is Delta's Revenue And EBITDA Brekdown?
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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September's load factor, at 84.6%, was slightly down, due to the drop in demand over Atlantic routes. Delta attributes the improvement to lower capacity levels, resulting in moderation on yields. However, Delta continues to face a supply-demand imbalance in the transatlantic region, which may prevent the turnaround of unit revenues to positive this year.
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In the month of September 2016, the legacy carrier, Delta, saw its capacity increase slightly in domestic markets and shrink in international markets, in line with the company's guidance. Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2'16 Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16 What Should We Expect From Delta's 1Q'16 Results? How Did The Legacy Carriers Perform Operationally In January?
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Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2'16 Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16 What Should We Expect From Delta's 1Q'16 Results? Delta Air Lines: The Year 2015 In Review How Will Delta's Revenue And EBITDA Grow Between 2015 and 2018? How Has Delta's Revenue And EBITDA Changed Over The Last Five Years What Is Delta's Revenue And EBITDA Brekdown?
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Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2'16 Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16 What Should We Expect From Delta's 1Q'16 Results? How Did The Legacy Carriers Perform Operationally In January? Delta Air Lines: The Year 2015 In Review How Will Delta's Revenue And EBITDA Grow Between 2015 and 2018?
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6fa2732f-9136-4f66-a422-6ea69833c2d9
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7805.0
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2016-10-10 00:00:00 UTC
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Hawaiian Airlines Posts 8.7% Increase in September Traffic
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AAL
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https://www.nasdaq.com/articles/hawaiian-airlines-posts-8.7-increase-in-september-traffic-2016-10-10
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nan
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nan
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Hawaiian Airlines, a wholly-owned subsidiary of Hawaiian Holdings, Inc.HA , recently posted impressive air traffic statistics for the month of September. Hawaiian Airlines witnessed an 8.7% rise in traffic - measured in revenue passenger miles (RPMs) - to 1.29 billion as against 1.18 billion recorded a year ago.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) climbed 5% to 1.51 billion. Moreover, load factor or percentage of seats filled by passengers increased to 85% from 82.1% in Sep 2015, as traffic growth outpaced capacity expansion.
For the first nine months of 2016, Hawaiian Airlines registered a 6.8% rise in RPMs to 11.55 billion, while ASMs inched up 3.6% to 13.81 billion, both on a year-over-year basis. Also, load factor increased by 250 basis points year over year to 83.7%. Moreover, passenger count for Sep 2016 and the first nine months of 2016 grew 4.1% and 3.8%, respectively.
The carrier also revised its guidance for the third quarter of 2016. Detailed results will be unveiled on Oct 18. The company now expects cost per ASM (excluding fuel) to climb in the band of 3% to 4% from the year-ago figure of 7.97 cents. The earlier guidance had hinted at an increase in the 2-5% range. Operating Revenue per ASM is now projected to increase in the band of 0.5% to 1.5% from the year-ago figure of 13.55 cents. The earlier guidance was of a decline of 1% to an increase of 2%. Fuel cost per gallon for the third quarter is now projected in the band of $1.48-$1.53 as against the range of $1.50-$1.60 expected earlier. The year-ago figure was $1.95 per gallon. Consequently, earnings for the third quarter of 2016 are expected to be benefited immensely from low fuel costs.
Hawaiian Holdings is not the only carrier to benefit from low fuel costs. Cheap oil is a blessing for the entire airline sector which includes bigwigs like Delta Air Lines DAL , United Continental Holdings UAL and American Airlines Group AAL .
HAWAIIAN HLDGS Price
HAWAIIAN HLDGS Price | HAWAIIAN HLDGS Quote
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DELTA AIR LINES (DAL): Free Stock Analysis Report
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UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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Cheap oil is a blessing for the entire airline sector which includes bigwigs like Delta Air Lines DAL , United Continental Holdings UAL and American Airlines Group AAL . Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, load factor or percentage of seats filled by passengers increased to 85% from 82.1% in Sep 2015, as traffic growth outpaced capacity expansion.
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Cheap oil is a blessing for the entire airline sector which includes bigwigs like Delta Air Lines DAL , United Continental Holdings UAL and American Airlines Group AAL . Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. HAWAIIAN HLDGS Price HAWAIIAN HLDGS Price | HAWAIIAN HLDGS Quote Confidential from Zacks Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public?
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Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Cheap oil is a blessing for the entire airline sector which includes bigwigs like Delta Air Lines DAL , United Continental Holdings UAL and American Airlines Group AAL . Hawaiian Airlines witnessed an 8.7% rise in traffic - measured in revenue passenger miles (RPMs) - to 1.29 billion as against 1.18 billion recorded a year ago.
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Cheap oil is a blessing for the entire airline sector which includes bigwigs like Delta Air Lines DAL , United Continental Holdings UAL and American Airlines Group AAL . Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Hawaiian Airlines, a wholly-owned subsidiary of Hawaiian Holdings, Inc.HA , recently posted impressive air traffic statistics for the month of September.
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de33c621-bf10-443d-a8c6-872972736235
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7806.0
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2016-10-10 00:00:00 UTC
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The Best Options Trade for Delta Air Lines (DAL) Earnings
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AAL
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https://www.nasdaq.com/articles/best-options-trade-delta-air-lines-dal-earnings-2016-10-10
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nan
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nan
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On Thursday, October, 13 th , Delta Air Lines (DAL) will release its third quarter earnings results after the bell. The company is a Zacks Rank 3 (Hold), and have a Value, Growth, and Momentum score of C.
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 Air Lines ahead of earnings.
Delta Air Lines in Focus
Delta Air Lines (DAL) 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 Air Lines is expected to report earnings at $1.65 per share according to the Zacks Consensus Estimate. Last quarter they reported an earnings beat at $1.47 per share beating the Zack's Consensus Estimate of $1.42 per share, and they have an average surprise of 1.69% over the last four quarters.
DELTA AIR LINES Price, Consensus and EPS Surprise
DELTA AIR LINES Price, Consensus and EPS Surprise | DELTA AIR LINES Quote
Delta Air Lines is trading around $39 a share, and they are well off from their 52-week high of $52.77 per share.
Delta Air Lines is tied to the transportation-airline sector , and their industry is in the bottom 32%. The airline industry has been through a lot of major changes within the late 10-15 years. The biggest change has been many mergers including American Airlines (AAL) who merged with TWA, then Continental Airlines merged with United Airlines (UAL), and Delta merged with Northwest Airlines a few years ago. Furthermore, the airlines' have started to rely on revenue from various fees including baggage to cancellation fees.
The airline industry remains very competitive for Delta. While Delta Air Lines goes against United Airlines and American Airlines in regards to being one of the three largest U.S. carriers, but Delta also faces tough competition against Southwest Airlines (LUV), then JetBlue (JBLU) and Virgin America (VA) in specific regions of the country. Internationally Delta Airlines faces tough competition against other global leaders such as Lufthansa and British Airlines who aren't in the Skyteam partnership; however, Delta does benefit being in the same partnership as Air France, KLM, Korean Air, China Airlines, and others which makes it easier for Delta fliers traveling abroad. That aspect can be appealing for international travelers, which can be a benefit for Delta Air Lines.
Bottom Line
How should investors play Delta Air Lines ahead of their earnings report? For insights on the best options trades, make sure to watch Dave Bartosiak at 1:00pm on Tuesday to see if he'll be bullish, or bearish. If you are interested this stream and service, then sign up for Zacks Live Trader .
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +26% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 11X worse than the market. See these critical buys and sells 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 AIR (LUV): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
VIRGIN AMERICA (VA): 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 biggest change has been many mergers including American Airlines (AAL) who merged with TWA, then Continental Airlines merged with United Airlines (UAL), and Delta merged with Northwest Airlines a few years ago. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. On Thursday, October, 13 th , Delta Air Lines (DAL) will release its third quarter earnings results after the bell.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. The biggest change has been many mergers including American Airlines (AAL) who merged with TWA, then Continental Airlines merged with United Airlines (UAL), and Delta merged with Northwest Airlines a few years ago. DELTA AIR LINES Price, Consensus and EPS Surprise DELTA AIR LINES Price, Consensus and EPS Surprise | DELTA AIR LINES Quote Delta Air Lines is trading around $39 a share, and they are well off from their 52-week high of $52.77 per share.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. The biggest change has been many mergers including American Airlines (AAL) who merged with TWA, then Continental Airlines merged with United Airlines (UAL), and Delta merged with Northwest Airlines a few years ago. DELTA AIR LINES Price, Consensus and EPS Surprise DELTA AIR LINES Price, Consensus and EPS Surprise | DELTA AIR LINES Quote Delta Air Lines is trading around $39 a share, and they are well off from their 52-week high of $52.77 per share.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. The biggest change has been many mergers including American Airlines (AAL) who merged with TWA, then Continental Airlines merged with United Airlines (UAL), and Delta merged with Northwest Airlines a few years ago. While Delta Air Lines goes against United Airlines and American Airlines in regards to being one of the three largest U.S. carriers, but Delta also faces tough competition against Southwest Airlines (LUV), then JetBlue (JBLU) and Virgin America (VA) in specific regions of the country.
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a6aaaefb-15a6-444d-ac9d-7d5c0016cc0a
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7807.0
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2016-10-07 00:00:00 UTC
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Noteworthy ETF Inflows: FTA, AAL, UAL, MU
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AAL
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https://www.nasdaq.com/articles/noteworthy-etf-inflows-fta-aal-ual-mu-2016-10-07
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Large Cap Value AlphaDEX Fund (Symbol: FTA) where we have detected an approximate $139.3 million dollar inflow -- that's a 17.1% increase week over week in outstanding units (from 19,050,002 to 22,300,002). Among the largest underlying components of FTA, in trading today American Airlines Group Inc (Symbol: AAL) is down about 0.5%, United Continental Holdings Inc (Symbol: UAL) is off about 0.7%, and Micron Technology Inc. (Symbol: MU) is lower by about 0.9%. For a complete list of holdings, visit the FTA Holdings page » The chart below shows the one year price performance of FTA, versus its 200 day moving average:
Looking at the chart above, FTA's low point in its 52 week range is $32.93 per share, with $43.13 as the 52 week high point - that compares with a last trade of $42.74. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
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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Among the largest underlying components of FTA, in trading today American Airlines Group Inc (Symbol: AAL) is down about 0.5%, United Continental Holdings Inc (Symbol: UAL) is off about 0.7%, and Micron Technology Inc. (Symbol: MU) is lower by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Large Cap Value AlphaDEX Fund (Symbol: FTA) where we have detected an approximate $139.3 million dollar inflow -- that's a 17.1% increase week over week in outstanding units (from 19,050,002 to 22,300,002). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of FTA, in trading today American Airlines Group Inc (Symbol: AAL) is down about 0.5%, United Continental Holdings Inc (Symbol: UAL) is off about 0.7%, and Micron Technology Inc. (Symbol: MU) is lower by about 0.9%. For a complete list of holdings, visit the FTA Holdings page » The chart below shows the one year price performance of FTA, versus its 200 day moving average: Looking at the chart above, FTA's low point in its 52 week range is $32.93 per share, with $43.13 as the 52 week high point - that compares with a last trade of $42.74. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Among the largest underlying components of FTA, in trading today American Airlines Group Inc (Symbol: AAL) is down about 0.5%, United Continental Holdings Inc (Symbol: UAL) is off about 0.7%, and Micron Technology Inc. (Symbol: MU) is lower by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Large Cap Value AlphaDEX Fund (Symbol: FTA) where we have detected an approximate $139.3 million dollar inflow -- that's a 17.1% increase week over week in outstanding units (from 19,050,002 to 22,300,002). For a complete list of holdings, visit the FTA Holdings page » The chart below shows the one year price performance of FTA, versus its 200 day moving average: Looking at the chart above, FTA's low point in its 52 week range is $32.93 per share, with $43.13 as the 52 week high point - that compares with a last trade of $42.74.
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Among the largest underlying components of FTA, in trading today American Airlines Group Inc (Symbol: AAL) is down about 0.5%, United Continental Holdings Inc (Symbol: UAL) is off about 0.7%, and Micron Technology Inc. (Symbol: MU) is lower by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Large Cap Value AlphaDEX Fund (Symbol: FTA) where we have detected an approximate $139.3 million dollar inflow -- that's a 17.1% increase week over week in outstanding units (from 19,050,002 to 22,300,002). For a complete list of holdings, visit the FTA Holdings page » The chart below shows the one year price performance of FTA, versus its 200 day moving average: Looking at the chart above, FTA's low point in its 52 week range is $32.93 per share, with $43.13 as the 52 week high point - that compares with a last trade of $42.74.
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1b7da004-97aa-40d0-acfb-72d5f57452a4
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7808.0
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2016-10-07 00:00:00 UTC
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FEX, FYX: Big ETF Inflows
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AAL
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https://www.nasdaq.com/articles/fex-fyx-big-etf-inflows-2016-10-07
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nan
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the First Trust Large Cap Core AlphaDEX Fund, which added 4,600,000 units, or a 15.2% increase week over week. Among the largest underlying components of FEX, in morning trading today Nvidia is up about 0.4%, and American Airlines Group is lower by about 0.5%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the First Trust Small Cap Core AlphaDEX Fund, which added 3,000,000 units, for a 33.3% increase in outstanding units. Among the largest underlying components of FYX, in morning trading today Exelixis is off about 0.9%, and Gigamon is up by about 0.5%.
VIDEO: FEX, FYX: Big ETF Inflows
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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Among the largest underlying components of FEX, in morning trading today Nvidia is up about 0.4%, and American Airlines Group is lower by about 0.5%. And on a percentage change basis, the ETF with the biggest increase in inflows was the First Trust Small Cap Core AlphaDEX Fund, which added 3,000,000 units, for a 33.3% increase in outstanding units. Among the largest underlying components of FYX, in morning trading today Exelixis is off about 0.9%, and Gigamon is up by about 0.5%.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the First Trust Large Cap Core AlphaDEX Fund, which added 4,600,000 units, or a 15.2% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the First Trust Small Cap Core AlphaDEX Fund, which added 3,000,000 units, for a 33.3% increase in outstanding units. VIDEO: FEX, FYX: Big ETF Inflows 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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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the First Trust Large Cap Core AlphaDEX Fund, which added 4,600,000 units, or a 15.2% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the First Trust Small Cap Core AlphaDEX Fund, which added 3,000,000 units, for a 33.3% increase in outstanding units. VIDEO: FEX, FYX: Big ETF Inflows 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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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the First Trust Large Cap Core AlphaDEX Fund, which added 4,600,000 units, or a 15.2% increase week over week. Among the largest underlying components of FEX, in morning trading today Nvidia is up about 0.4%, and American Airlines Group is lower by about 0.5%. And on a percentage change basis, the ETF with the biggest increase in inflows was the First Trust Small Cap Core AlphaDEX Fund, which added 3,000,000 units, for a 33.3% increase in outstanding units.
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073c93d1-c7b7-4f97-a4cc-12ddc687cf08
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7809.0
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2016-10-07 00:00:00 UTC
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Can Delta's (DAL) Q3 Earnings Beat Despite Outage Issue?
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AAL
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https://www.nasdaq.com/articles/can-deltas-dal-q3-earnings-beat-despite-outage-issue-2016-10-07
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nan
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nan
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Delta Air Lines, Inc.DAL is scheduled to report third-quarter 2016 results on Oct 13, before the market opens. We note that Delta will be the first company from the airline sector to report earnings this season.
This Atlanta, GA-based carrier reported better-than-expected earnings in the second quarter of 2016. In fact, the carrier outpaced earnings estimates in three of the last four quarters. The average earnings beat is 1.69%. It remains to be seen how the company performs this quarter.
Factors at Play
Delta is one of the major U.S. airlines to have received approval from the U.S. Department of Transportation (DoT) to start flight services to Cuba. This is a huge positive of the company and is expected to boost its top line. Delta also posted growth in traffic figures for Sep 2016. Moreover, we are impressed with its efforts to reward shareholders.
Delta also faces intense competition from peers like American Airlines Group Inc. AAL and United Continental Holdings Inc. UAL . However, the main concern for investors this quarter will be the power outage issue suffered by Delta in August this year. The outage issue had disrupted the company's operations and resulted in several flight cancellations and delays. Per the company's third-quarter guidance, earnings will be adversely impacted by the outage issue.
Delta expects operating margin to be in the range of 18%-19% in the third quarter, including a 1.5 points impact due to the outage issue. PRASM too is expected to be adversely impacted by 1 point and decline around 7% for the third quarter.
DELTA AIR LINES Price and EPS Surprise
DELTA AIR LINES Price and EPS Surprise | DELTA AIR LINES Quote
Earnings Whispers
Our proven model does not conclusively show that Delta will beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. This is not the case here as you will see below.
Zacks ESP: The Earnings ESP for Delta is -1.24%%. This is because the Most Accurate estimate stands at 1.60 while the Zacks Consensus Estimate is pegged at $1.62.
Zacks Rank: The carrier carries a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, our surprise prediction is complicated by the company's negative Earnings ESP.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.
A Stock That Warrants a Look
While it remains to be seen as to how Delta performs this quarter, there 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 #2 and an Earnings ESP of +1.70%. The company is expected to report third-quarter results on Oct 25.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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 also faces intense competition from peers like American Airlines Group Inc. AAL and United Continental Holdings Inc. UAL . Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Factors at Play Delta is one of the major U.S. airlines to have received approval from the U.S. Department of Transportation (DoT) to start flight services to Cuba.
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Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta also faces intense competition from peers like American Airlines Group Inc. AAL and United Continental Holdings Inc. UAL . DELTA AIR LINES Price and EPS Surprise DELTA AIR LINES Price and EPS Surprise | DELTA AIR LINES Quote Earnings Whispers Our proven model does not conclusively show that Delta will beat earnings estimates this quarter.
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Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta also faces intense competition from peers like American Airlines Group Inc. AAL and United Continental Holdings Inc. UAL . DELTA AIR LINES Price and EPS Surprise DELTA AIR LINES Price and EPS Surprise | DELTA AIR LINES Quote Earnings Whispers Our proven model does not conclusively show that Delta will beat earnings estimates this quarter.
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Delta also faces intense competition from peers like American Airlines Group Inc. AAL and United Continental Holdings Inc. UAL . Click to get this free report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank: The carrier carries a Zacks Rank #3.
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2670b863-a905-4d15-9f18-ea24159b4a14
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7810.0
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2016-10-06 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Chubb, Travelers, American Airlines Group, Carnival and Walt Disney
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-chubb-travelers-american-airlines-group-carnival-and
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nan
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For Immediate Release
Chicago, IL - October 06, 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 Chubb Limited (NYSE: CB - Free Report ), Travelers Companies, Inc. (NYSE: TRV - Free Report ), American Airlines Group Inc. (NASDAQ: AAL - Free Report ), Carnival Corporation (NYSE: CCL - Free Report ) and Walt Disney Company (NYSE: DIS - 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:
Hurricane Matthew Puts These Stocks in Focus
Residents across four states on the east coast are bracing for impact as Hurricane Matthew continues to make its way toward the U.S. The storm headed toward Florida on Wednesday after causing severe devastation across Haiti and bringing heavy rainfall and strong winds to the entire Caribbean region.
According to forecasts, the category 4 hurricane will hit Florida, South and North Carolina, and Georgia sometime between Thursday evening and Friday. Not just ordinary citizens, several companies may also be affected by the event.
Property & Casualty Insurers Decline
Expected to hit landfall before Saturday morning, the storm has been described as particularly dangerous by the hurricane center. Governors across the four states have already begun evacuations, anticipating the severe destruction that it is likely to cause. Endless queues for gas, sellouts for emergency materials at stores and a massive gridlock on highways are underscoring the seriousness for which preparations are underway.
As a result, property and casualty insurance companies felt the heat on Tuesday. Chubb Limited (NYSE: CB - Free Report ) declined 1%. Chubb has a Zacks Rank #4 (Sell).
Meanwhile, Zacks Rank #3 rated The Travelers Companies, Inc. (NYSE: TRV - Free Report ) lost 0.6%. Analysts have said that it is advisable to wait until the storm passes before buying stocks from the sector. This is because such stocks often bounce back if it is learnt that the extent of damage is not as severe as anticipated.
Airlines, Cruise Lines Affected
By Tuesday, air travel between southern Florida and the Caribbean had been affected. A few airlines were suspending flights as a preemptive measure to ensure the security of their passengers. Others have made offers to passengers who are rescheduling their travel dates. These passengers will be able to do so without paying any additional charges.
The maximum number of cancellations was made by Zacks #3 American Airlines Group Inc. (NASDAQ: AAL - Free Report ). Other airlines also suspended some flights.
Additionally, the financial performance of cruise lines such as Zacks Rank #3 Carnival Corporation (NYSE: CCL - Free Report ) will also be impacted by Hurricane Matthew. Travel plans will undergo changes and cruise lines will be forced to offer discounts and refunds by way of compensation. This will hurt revenues and ultimately depress bottom lines.
Hurricane Likely to Hurt Disney
Zacks Rank #3 The Walt Disney Company's (NYSE: DIS - Free Report ) Disney Cruise Line has also been affected by the imminent storm. However, the company's theme park in Florida, The Walt Disney World Resort, is likely to face an even bigger threat from Hurricane Matthew. As per policies instituted nearly a decade ago, Disney will reschedule vacations without any charge and refund cancellations in case these are made within seven days of a hurricane warning in Orlando or the customer's hometown. The same rules apply to its timeshare resorts located at Vero Beach and Hilton Head Island.
Other theme parks in the region including Universal Orlando will also be impacted by these events. Both these stocks carry a Zacks Rank #3. While Universal's policies related to refunds are similar to Disney's, SeaWorld's rules regarding this issue do not specify that all the conditions that have to satisfied by a customer in order to be eligible for a free refund.
Conclusion
Despite the preparations made across the four states likely to be affected, Hurricane Matthew may still leave much destruction in its wake. Several companies are likely to be hurt as a result. It remains to be seen whether the impact is as much as is being feared or whether the storm rolls ahead without causing much damage.
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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 >>.
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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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Stocks recently featured in the blog include Chubb Limited (NYSE: CB - Free Report ), Travelers Companies, Inc. (NYSE: TRV - Free Report ), American Airlines Group Inc. (NASDAQ: AAL - Free Report ), Carnival Corporation (NYSE: CCL - Free Report ) and Walt Disney Company (NYSE: DIS - Free Report ). The maximum number of cancellations was made by Zacks #3 American Airlines Group Inc. (NASDAQ: AAL - Free Report ). Get the full Report on CB - FREE Get the full Report on TRV - FREE Get the full Report on AAL - FREE Get the full Report on CCL - FREE Get the full Report on DIS - 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 Chubb Limited (NYSE: CB - Free Report ), Travelers Companies, Inc. (NYSE: TRV - Free Report ), American Airlines Group Inc. (NASDAQ: AAL - Free Report ), Carnival Corporation (NYSE: CCL - Free Report ) and Walt Disney Company (NYSE: DIS - Free Report ). Get the full Report on CB - FREE Get the full Report on TRV - FREE Get the full Report on AAL - FREE Get the full Report on CCL - FREE Get the full Report on DIS - 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 CHUBB LTD (CB): Free Stock Analysis Report TRAVELERS COS (TRV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report CARNIVAL CORP (CCL): Free Stock Analysis Report DISNEY WALT (DIS): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Chubb Limited (NYSE: CB - Free Report ), Travelers Companies, Inc. (NYSE: TRV - Free Report ), American Airlines Group Inc. (NASDAQ: AAL - Free Report ), Carnival Corporation (NYSE: CCL - Free Report ) and Walt Disney Company (NYSE: DIS - Free Report ). Get the full Report on CB - FREE Get the full Report on TRV - FREE Get the full Report on AAL - FREE Get the full Report on CCL - FREE Get the full Report on DIS - 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 CHUBB LTD (CB): Free Stock Analysis Report TRAVELERS COS (TRV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report CARNIVAL CORP (CCL): Free Stock Analysis Report DISNEY WALT (DIS): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Chubb Limited (NYSE: CB - Free Report ), Travelers Companies, Inc. (NYSE: TRV - Free Report ), American Airlines Group Inc. (NASDAQ: AAL - Free Report ), Carnival Corporation (NYSE: CCL - Free Report ) and Walt Disney Company (NYSE: DIS - Free Report ). The maximum number of cancellations was made by Zacks #3 American Airlines Group Inc. (NASDAQ: AAL - Free Report ). Get the full Report on CB - FREE Get the full Report on TRV - FREE Get the full Report on AAL - FREE Get the full Report on CCL - FREE Get the full Report on DIS - 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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66a2eff1-221a-4e3c-9693-559743a02afa
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7811.0
|
2016-10-05 00:00:00 UTC
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YieldBoost American Airlines Group From 1.1% To 6.7% Using Options
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AAL
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https://www.nasdaq.com/articles/yieldboost-american-airlines-group-11-67-using-options-2016-10-05
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nan
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nan
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Shareholders of American Airlines Group Inc (Symbol: AAL) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the January 2018 covered call at the $47 strike and collect the premium based on the $2.75 bid, which annualizes to an additional 5.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 6.7% annualized rate in the scenario where the stock is not called away. Any upside above $47 would be lost if the stock rises there and is called away, but AAL shares would have to advance 23.9% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 31.2% return from this trading level, in addition to any dividends collected before the stock was called.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of American Airlines Group Inc, looking at the dividend history chart for AAL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 1.1% annualized dividend yield.
Below is a chart showing AAL's trailing twelve month trading history, with the $47 strike highlighted in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2018 covered call at the $47 strike gives good reward for the risk of having given away the upside beyond $47. ( Do most options expire worthless? This and six other common options myths debunked ). We calculate the trailing twelve month volatility for American Airlines Group Inc (considering the last 252 trading day closing values as well as today's price of $37.95) to be 37%. For other call options contract ideas at the various different available expirations, visit the AAL Stock Options page of StockOptionsChannel.com.
Top YieldBoost Calls of the Nasdaq 100 »
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 chart showing AAL's trailing twelve month trading history, with the $47 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2018 covered call at the $47 strike gives good reward for the risk of having given away the upside beyond $47. Shareholders of American Airlines Group Inc (Symbol: AAL) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the January 2018 covered call at the $47 strike and collect the premium based on the $2.75 bid, which annualizes to an additional 5.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 6.7% annualized rate in the scenario where the stock is not called away. Any upside above $47 would be lost if the stock rises there and is called away, but AAL shares would have to advance 23.9% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 31.2% return from this trading level, in addition to any dividends collected before the stock was called.
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Shareholders of American Airlines Group Inc (Symbol: AAL) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the January 2018 covered call at the $47 strike and collect the premium based on the $2.75 bid, which annualizes to an additional 5.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 6.7% annualized rate in the scenario where the stock is not called away. Below is a chart showing AAL's trailing twelve month trading history, with the $47 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2018 covered call at the $47 strike gives good reward for the risk of having given away the upside beyond $47. Any upside above $47 would be lost if the stock rises there and is called away, but AAL shares would have to advance 23.9% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 31.2% return from this trading level, in addition to any dividends collected before the stock was called.
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Shareholders of American Airlines Group Inc (Symbol: AAL) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the January 2018 covered call at the $47 strike and collect the premium based on the $2.75 bid, which annualizes to an additional 5.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 6.7% annualized rate in the scenario where the stock is not called away. Any upside above $47 would be lost if the stock rises there and is called away, but AAL shares would have to advance 23.9% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 31.2% return from this trading level, in addition to any dividends collected before the stock was called. Below is a chart showing AAL's trailing twelve month trading history, with the $47 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2018 covered call at the $47 strike gives good reward for the risk of having given away the upside beyond $47.
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Shareholders of American Airlines Group Inc (Symbol: AAL) looking to boost their income beyond the stock's 1.1% annualized dividend yield can sell the January 2018 covered call at the $47 strike and collect the premium based on the $2.75 bid, which annualizes to an additional 5.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 6.7% annualized rate in the scenario where the stock is not called away. Below is a chart showing AAL's trailing twelve month trading history, with the $47 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2018 covered call at the $47 strike gives good reward for the risk of having given away the upside beyond $47. For other call options contract ideas at the various different available expirations, visit the AAL Stock Options page of StockOptionsChannel.com.
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26ede4cf-5469-46ec-81aa-8f440bc559cd
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7812.0
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2016-10-05 00:00:00 UTC
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Delta's Pending Pilot Contract To Sabotage Southwest's Recently Approved Labor Agreement
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AAL
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https://www.nasdaq.com/articles/deltas-pending-pilot-contract-sabotage-southwests-recently-approved-labor-agreement-2016
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nan
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nan
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Most U.S. airlines are enjoying booming profits, on the back of a two-year long slump in oil prices . The increased cash flows have been utilized by the airlines to renew their fleet, dispense their debts, and even placate passengers by offering deep discounts. At such a time, labor is also demanding its fair share of profits and pay hikes, not only in recompense to the cuts they undertook during the recession, but also to be an equal stakeholder of the recent success of the carriers. Consequently, a number of airlines have been suffering from agonizing negotiations with their pilots and support staff.
Delta's New Labor Agreement
The labor turbulence at Delta Airlines has been continuing since 2015, when pilots rejected a tentative deal that altered the airline's profit sharing formula and thatfeatured a 21% pay increase over three years . Delta's pre-tax profit in 2015 was $7.2 billion.
In 2016, the pilots held protests at a number of airports to dissent against the stalled negotiations. After a change in union leadership, the airline's pilots demanded a roughly 40% hike over a three-year period versus a proposal by management of 27.3% over the course of four years. As of 30th September, a new deal was compromised upon. According to the new agreement, the pilots will get a 30% hike in wages over a period of four years. The terms of the deal include the increase to be retroactive from 1st January, when the older contract expired. The deal awaits the approval of union leaders before it can become a tentative agreement sent on to pilots for a vote to ratify or reject.
Potential Disruption Of Southwest's Labor Contract
After four years of tussle, Southwest reached an agreement with its pilots, to raise their pay by 15% with effect from late 2016, and then by 3% a year for the next four years (2020). The contract was decided to be back dated to when the discussion regarding the agreement began (2013), providing an overall increment of close to 30% to its 8,500 odd pilots.
However, post the news of the pending agreement between Delta and its pilots, Southwest's pilots are looking to reopen discussions regarding the contract. If the agreement with the pilots is renegotiated, Southwest will likely have to expend an even larger portion of its revenues as labor costs, as opposed to our earlier estimated figures. This is not only detrimental to Southwest in terms of inconvenience of further negotiations, but higher operating costs.
Kick In Of United's Hike Provision
At the onset of this year, United's pilots approved of a two year extension in the carrier's existing labor agreement. The two-year extension includes a 13% pay hike in 2016, followed by a 3% increase in 2017, and 2% in 2018. Further, it contains a provision that will boost the pay of United's pilots if Delta pilots secure a more lucrative deal.
Conclusion
Pilots, at any airline, strive for industry leading pay during negotiations. If Delta's contract proves to be more favorable, negotiations will reopen on the tables at Southwest and United, stalling the already prolonged discussions. The labor costs at most airlines have already increased consequently, as seen in the table below. These costs will go higher as the new contracts come into play.
Further, the recent meeting between OPEC countries has led to a decision to establish a ceiling on its oil production. This will potentially lead to a restriction on their combined oil output to 32.5 and 33 million barrels per day, implying a reduction of 200 to 700 MBPD (thousand barrels per day) compared to the record high output in August, provided all the member countries adhere to this limit. If this happens, we may see oil prices bounce back, putting pressure on airlines who are battling negative unit revenues.
Thus, the airlines face the double challenge of negotiating contracts in dragged out negotiations to reward labor for its contribution to stable profitability, while also ensuring that the productivity in those agreements creates a minimum level of cost inflation to offset the impact of higher fuel expenditure.
Have more questions about Delta Air Lines ( DAL )? See the links below:
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 Has Trefis Lowered Delta's Price Estimate From $51 To $44 Per Share?
Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues
Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2'16
Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16
What Should We Expect From Delta's 1Q'16 Results?
How Did The Legacy Carriers Perform Operationally In January?
Why Did Delta's Operating Margin Soar In 2015?
Delta Air Lines: The Year 2015 In Review
How Will Delta's Revenue And EBITDA Grow Between 2015 and 2018?
How Has Delta's Revenue And EBITDA Changed Over The Last Five Years
What Is Delta's Revenue And EBITDA Brekdown?
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 increased cash flows have been utilized by the airlines to renew their fleet, dispense their debts, and even placate passengers by offering deep discounts. At such a time, labor is also demanding its fair share of profits and pay hikes, not only in recompense to the cuts they undertook during the recession, but also to be an equal stakeholder of the recent success of the carriers. After a change in union leadership, the airline's pilots demanded a roughly 40% hike over a three-year period versus a proposal by management of 27.3% over the course of four years.
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Delta's New Labor Agreement The labor turbulence at Delta Airlines has been continuing since 2015, when pilots rejected a tentative deal that altered the airline's profit sharing formula and thatfeatured a 21% pay increase over three years . Delta Versus JetBlue: Expansion Into Boston And Its Effect On Unit Revenues How Will Delta Air Lines Utilize Its Cash Flows? Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2'16 Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16 What Should We Expect From Delta's 1Q'16 Results?
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Delta's New Labor Agreement The labor turbulence at Delta Airlines has been continuing since 2015, when pilots rejected a tentative deal that altered the airline's profit sharing formula and thatfeatured a 21% pay increase over three years . Potential Disruption Of Southwest's Labor Contract After four years of tussle, Southwest reached an agreement with its pilots, to raise their pay by 15% with effect from late 2016, and then by 3% a year for the next four years (2020). Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2'16 Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16 What Should We Expect From Delta's 1Q'16 Results?
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Delta's New Labor Agreement The labor turbulence at Delta Airlines has been continuing since 2015, when pilots rejected a tentative deal that altered the airline's profit sharing formula and thatfeatured a 21% pay increase over three years . This is not only detrimental to Southwest in terms of inconvenience of further negotiations, but higher operating costs. The labor costs at most airlines have already increased consequently, as seen in the table below.
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abb7b6de-570e-45d8-b387-a084159702c0
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7813.0
|
2016-10-04 00:00:00 UTC
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Is Earnings Recession Coming to an End?
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AAL
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https://www.nasdaq.com/articles/earnings-recession-coming-end-2016-10-04
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nan
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nan
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Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actuals and estimates for the current and following periods, please click here>>>
Earnings growth is expected to be in negative territory in the Q3 earnings season, which will follow 5 back-to-back quarters of earnings declines for the S&P 500 index. But many in the market don't see the earnings picture in those grim colors. In fact, many see this earnings season as an inflection point, with earnings declines coming to an end and steady growth resuming from Q4 onwards. Driving this view are three key points.
First, the magnitude of negative revisions that Q3 estimates suffered were lower compared to what we had seen in the preceding quarters. Estimates for Q3 came down as companies reported Q2 results and guided lower, with expectations of earnings growth for the S&P 500 index dropping from an essentially flat reading at the beginning of July to the current -2.9%. This is a lower drop than we became used to seeing in the comparable periods in the preceding quarters.
Second, the -2.9% decline in Q3 earnings on +1% higher revenues will be the lowest decline rate expected at the start of the season. At the comparable stage in the Q2 earnings season, earnings growth for the S&P 500 index was expected to be -6.2%, which actually turned out to be -2.8%. We had similarly bigger decline rates expected at the start of earnings season in Q1 and the quarters prior to that, with actual earnings growth rates coming in better than pre-season expectations by about +2% to +3%. If Q3 results follow this trend, the finally growth tally will most likely be close to a flat finish.
Third, the Energy sector still remains a big drag on the aggregate growth picture, with total earnings for the sector expected to be down -66.6% from the same period last year. Excluding the Energy sector, total earnings for the S&P 500 would be modestly in positive territory, up +0.3%. The Energy sector still has plenty of challenges, but the tyranny of tough comparisons is starting to fade. It is a smaller burden in Q3 than was the case in either of the preceding two quarters and comparisons are expected to turn positive in the following earnings season.
Standout Sectors this Earnings season
Earnings growth is expected to be negative for half of the 16 Zacks sectors, led by Energy (- 66.6%), Transportation (- 21.8%), and Autos (- 18%). The Transportation decline is primarily concentrated in the legacy air carriers, particularly American Airlines ( AAL ) and United Continental ( UAL ) that are experiencing higher costs following recent labor contract awards. The Auto sector's growth issue is primarily due to Ford ( F ), which guided lower the last earnings season.
Growth is expected to be negative for the Technology sector as well, with total earnings for the sector expected to be down -1.9% from the same period last year on -1% lower revenues. The Tech growth challenge is primarily concentrated in Apple ( AAPL ) whose September-quarter earnings are expected to be down -20.7% on -9.6% lower revenues. Excluding Apple, the sector's Q3 earnings would be up +2.9% on +0.5% higher revenues.
On the positive side of the ledger, we have Construction (+7% earnings growth in Q3), Business Services (+6.7%), Retail (+4.5%), Utilities (+4.6%) and Finance (+3.7%).
Estimates Beyond Q3
The chart below shows Q3 growth expectations contrasted with what was actually achieved in the preceding four quarters and estimates for the following three periods. Full-year 2016 earnings growth expectations are now negative, similar to what we saw last year.
Beyond the current period (September quarter), meaningful growth is expected to resume from Q4, which is then expected to continue into 2017.
Easier comparisons for the Energy sector arrive in Q4, when the sector's earnings growth turns positive. But the expected growth in Q4 and beyond isn't solely a function of easy comparisons for the Energy sector - the expectation is for positive momentum from a broad cross section of sectors. Those expectations will most likely need to come down. But it will be interesting to see to what extent they will have to come down.
Note: Sheraz Mian manages the Zacks equity research department. He is an acknowledged earnings expert whose commentaries and analyses appear on Zacks.com and in the print and electronic media. His weekly earnings related articles includeEarnings Trends and Earnings Preview . He manages the Zacks Top 10 and Focus List portfolios and writes the Weekly Market Analysis article for Zacks Premium subscribers.
If you want an email notification each time Sheraz Mian publishes a new article, pleaseclick here>>>
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UNITED CONT HLD (UAL): Free Stock Analysis Report
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APPLE INC (AAPL): Free Stock Analysis Report
AMER AIRLINES (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 Transportation decline is primarily concentrated in the legacy air carriers, particularly American Airlines ( AAL ) and United Continental ( UAL ) that are experiencing higher costs following recent labor contract awards. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report FORD MOTOR CO (F): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Estimates for Q3 came down as companies reported Q2 results and guided lower, with expectations of earnings growth for the S&P 500 index dropping from an essentially flat reading at the beginning of July to the current -2.9%.
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Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report FORD MOTOR CO (F): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The Transportation decline is primarily concentrated in the legacy air carriers, particularly American Airlines ( AAL ) and United Continental ( UAL ) that are experiencing higher costs following recent labor contract awards. You can access the full report that contains detailed historical actuals and estimates for the current and following periods, please click here>>> Earnings growth is expected to be in negative territory in the Q3 earnings season, which will follow 5 back-to-back quarters of earnings declines for the S&P 500 index.
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The Transportation decline is primarily concentrated in the legacy air carriers, particularly American Airlines ( AAL ) and United Continental ( UAL ) that are experiencing higher costs following recent labor contract awards. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report FORD MOTOR CO (F): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. You can access the full report that contains detailed historical actuals and estimates for the current and following periods, please click here>>> Earnings growth is expected to be in negative territory in the Q3 earnings season, which will follow 5 back-to-back quarters of earnings declines for the S&P 500 index.
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The Transportation decline is primarily concentrated in the legacy air carriers, particularly American Airlines ( AAL ) and United Continental ( UAL ) that are experiencing higher costs following recent labor contract awards. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report FORD MOTOR CO (F): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. You can access the full report that contains detailed historical actuals and estimates for the current and following periods, please click here>>> Earnings growth is expected to be in negative territory in the Q3 earnings season, which will follow 5 back-to-back quarters of earnings declines for the S&P 500 index.
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51a4b061-586b-4fc3-84f5-8e34ea3496d4
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7814.0
|
2016-10-04 00:00:00 UTC
|
Is Earnings Recession Coming to an End?
|
AAL
|
https://www.nasdaq.com/articles/earnings-recession-coming-end-2016-10-04-0
|
nan
|
nan
|
Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actuals and estimates for the current and following periods, please click here>>>
Earnings growth is expected to be in negative territory in the Q3 earnings season, which will follow 5 back-to-back quarters of earnings declines for the S&P 500 index. But many in the market don't see the earnings picture in those grim colors. In fact, many see this earnings season as an inflection point, with earnings declines coming to an end and steady growth resuming from Q4 onwards. Driving this view are three key points.
First, the magnitude of negative revisions that Q3 estimates suffered were lower compared to what we had seen in the preceding quarters. Estimates for Q3 came down as companies reported Q2 results and guided lower, with expectations of earnings growth for the S&P 500 index dropping from an essentially flat reading at the beginning of July to the current -2.9%. This is a lower drop than we became used to seeing in the comparable periods in the preceding quarters.
Second, the -2.9% decline in Q3 earnings on +1% higher revenues will be the lowest decline rate expected at the start of the season. At the comparable stage in the Q2 earnings season, earnings growth for the S&P 500 index was expected to be -6.2%, which actually turned out to be -2.8%. We had similarly bigger decline rates expected at the start of earnings season in Q1 and the quarters prior to that, with actual earnings growth rates coming in better than pre-season expectations by about +2% to +3%. If Q3 results follow this trend, the finally growth tally will most likely be close to a flat finish.
Third, the Energy sector still remains a big drag on the aggregate growth picture, with total earnings for the sector expected to be down -66.6% from the same period last year. Excluding the Energy sector, total earnings for the S&P 500 would be modestly in positive territory, up +0.3%. The Energy sector still has plenty of challenges, but the tyranny of tough comparisons is starting to fade. It is a smaller burden in Q3 than was the case in either of the preceding two quarters and comparisons are expected to turn positive in the following earnings season.
Standout Sectors this Earnings season
Earnings growth is expected to be negative for half of the 16 Zacks sectors, led by Energy (- 66.6%), Transportation (- 21.8%), and Autos (- 18%). The Transportation decline is primarily concentrated in the legacy air carriers, particularly American Airlines ( AAL ) and United Continental ( UAL ) that are experiencing higher costs following recent labor contract awards. The Auto sector's growth issue is primarily due to Ford ( F ), which guided lower the last earnings season.
Growth is expected to be negative for the Technology sector as well, with total earnings for the sector expected to be down -1.9% from the same period last year on -1% lower revenues. The Tech growth challenge is primarily concentrated in Apple ( AAPL ) whose September-quarter earnings are expected to be down -20.7% on -9.6% lower revenues. Excluding Apple, the sector's Q3 earnings would be up +2.9% on +0.5% higher revenues.
On the positive side of the ledger, we have Construction (+7% earnings growth in Q3), Business Services (+6.7%), Retail (+4.5%), Utilities (+4.6%) and Finance (+3.7%).
Estimates Beyond Q3
The chart below shows Q3 growth expectations contrasted with what was actually achieved in the preceding four quarters and estimates for the following three periods. Full-year 2016 earnings growth expectations are now negative, similar to what we saw last year.
Beyond the current period (September quarter), meaningful growth is expected to resume from Q4, which is then expected to continue into 2017.
Easier comparisons for the Energy sector arrive in Q4, when the sector's earnings growth turns positive. But the expected growth in Q4 and beyond isn't solely a function of easy comparisons for the Energy sector - the expectation is for positive momentum from a broad cross section of sectors. Those expectations will most likely need to come down. But it will be interesting to see to what extent they will have to come down.
Note: Sheraz Mian manages the Zacks equity research department. He is an acknowledged earnings expert whose commentaries and analyses appear on Zacks.com and in the print and electronic media. His weekly earnings related articles includeEarnings Trends and Earnings Preview . He manages the Zacks Top 10 and Focus List portfolios and writes the Weekly Market Analysis article for Zacks Premium subscribers.
If you want an email notification each time Sheraz Mian publishes a new article, pleaseclick here>>>
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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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The Transportation decline is primarily concentrated in the legacy air carriers, particularly American Airlines ( AAL ) and United Continental ( UAL ) that are experiencing higher costs following recent labor contract awards. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report FORD MOTOR CO (F): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Estimates for Q3 came down as companies reported Q2 results and guided lower, with expectations of earnings growth for the S&P 500 index dropping from an essentially flat reading at the beginning of July to the current -2.9%.
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Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report FORD MOTOR CO (F): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The Transportation decline is primarily concentrated in the legacy air carriers, particularly American Airlines ( AAL ) and United Continental ( UAL ) that are experiencing higher costs following recent labor contract awards. You can access the full report that contains detailed historical actuals and estimates for the current and following periods, please click here>>> Earnings growth is expected to be in negative territory in the Q3 earnings season, which will follow 5 back-to-back quarters of earnings declines for the S&P 500 index.
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The Transportation decline is primarily concentrated in the legacy air carriers, particularly American Airlines ( AAL ) and United Continental ( UAL ) that are experiencing higher costs following recent labor contract awards. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report FORD MOTOR CO (F): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. You can access the full report that contains detailed historical actuals and estimates for the current and following periods, please click here>>> Earnings growth is expected to be in negative territory in the Q3 earnings season, which will follow 5 back-to-back quarters of earnings declines for the S&P 500 index.
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The Transportation decline is primarily concentrated in the legacy air carriers, particularly American Airlines ( AAL ) and United Continental ( UAL ) that are experiencing higher costs following recent labor contract awards. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report FORD MOTOR CO (F): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. You can access the full report that contains detailed historical actuals and estimates for the current and following periods, please click here>>> Earnings growth is expected to be in negative territory in the Q3 earnings season, which will follow 5 back-to-back quarters of earnings declines for the S&P 500 index.
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80ae5599-b4d9-4b2d-8591-dfa9b884b216
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7815.0
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2016-10-03 00:00:00 UTC
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Alcoa, Ford, United, American and Apple are part of Zacks Earnings Preview
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AAL
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https://www.nasdaq.com/articles/alcoa-ford-united-american-and-apple-are-part-of-zacks-earnings-preview-2016-10-03
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nan
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nan
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For Immediate Release
Chicago, IL - October 03, 2016 - Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes Alcoa (NYSE: AA - Free Report ), Ford (NYSE: F - Free Report ), United (NYSE: UAL - Free Report ), American (NASDAQ: AAL - Free Report ) and Apple (NASDAQ: AAPL - Free Report ).
To see more earnings analysis, visit https://at.zacks.com/?id=3207 .
Every day, Zacks.com makes their Bull Stock of the Day available, free of charge. To see it, click here .
Q3 Earnings Season Preview
Alcoa (NYSE: AA - Free Report ) will report Q3 results on October 10th, but this earnings season has started already, with results from 17 S&P 500 members already out. All of these companies are reporting results for their fiscal periods ending in August, which gets counted as part of our Q3 tally.
Most of the index members are on the calendar quarter and Alcoa is the first among them to come out with quarterly results; hence its reputation for kick-starting each quarterly reporting cycle. But the fact remains that we will have seen results from more than two dozen such index members by the time the Alcoa report comes out.
The chart below shows the quarterly reporting schedule for this earnings season.
Total earnings for the 17 S&P 500 members that have reported results already are up +5.6% from the same period last year on +5.3% higher revenues, with 82.4% beating EPS estimates and 64.7% coming ahead of revenue estimates. This is a better performance than we have seen from the same group of 17 index members in other recent periods.
The picture emerging would be in-line with our modestly favorable commentary on the Q2 earnings season when we were detecting an ever-so-slight improvement in the growth picture. Earnings growth was in negative territory in Q2 - the 5th quarter in a row of earnings declines for the index - but the pace of declines was nevertheless an improvement over what we had seen in the preceding two quarters. This gave rise to the narrative that the worst was likely behind us now on the growth front and that the picture will steadily be improving going forward.
We will see if those hopes will pan out in the coming days, but we probably shouldn't read too much into the very small sample of reports at this stage.
Q3 Estimates As a Whole
Estimates for Q3 came down as the quarter got underway, in-line with the trend that we have become used to seeing over the last few years. That said, the magnitude of negative revisions that Q3 estimates suffered has been smaller relative to other recent quarters.
Total earnings for the S&P 500 index are currently expected to be down -2.8% from the same period last year on +1% higher revenues. This would compare to 2016 Q2 earnings growth of -2.8% on +0.2% higher revenues.
Energy remains the biggest drag on the aggregate growth picture, with Autos and Transportation as the other major growth laggards. Tough comparisons at Ford (NYSE: F - Free Report ) and the air carriers, particularly United (NYSE: UAL - Free Report ) and American (NASDAQ: AAL - Free Report ), explain the growth issues in those two sectors.
For the two biggest sectors, Technology earnings are expected to be down -1.8% on -1% lower revenues while Finance earnings are expected to be up +3.7% on +1.3% higher revenues. The Tech decline is solely a function of Apple (NASDAQ: AAPL - Free Report ), which is expected to see earnings decline -20.6% from the same period last year on -9.6% lower revenues. Excluding the Apple drag, the Tech sector's earnings would be up +2.9%.
Expectations Beyond Q3
Q3 is expected to be last quarter of negative-growth with Q4 earnings expected to be in positive territory. The Energy sector drag is expected to end in 2016 Q4 and beyond. We will see if those estimates will hold up as companies report Q3 results and provide guidance for Q4 and beyond. It will be interesting to see if the decelerated pace of negative revisions that we saw the last earnings season will get repeated this time as well.
About the Zacks Rank
Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank stocks have generated an average annual return of +28%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have significantly underperformed the S&P 500 (+3% versus +10%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
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ALCOA INC (AA): Free Stock Analysis Report
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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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This week's list includes Alcoa (NYSE: AA - Free Report ), Ford (NYSE: F - Free Report ), United (NYSE: UAL - Free Report ), American (NASDAQ: AAL - Free Report ) and Apple (NASDAQ: AAPL - Free Report ). Tough comparisons at Ford (NYSE: F - Free Report ) and the air carriers, particularly United (NYSE: UAL - Free Report ) and American (NASDAQ: AAL - Free Report ), explain the growth issues in those two sectors. Get the full Report on AA - FREE Get the full Report on F - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on AAPL - 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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This week's list includes Alcoa (NYSE: AA - Free Report ), Ford (NYSE: F - Free Report ), United (NYSE: UAL - Free Report ), American (NASDAQ: AAL - Free Report ) and Apple (NASDAQ: AAPL - Free Report ). Get the full Report on AA - FREE Get the full Report on F - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on AAPL - 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 ALCOA INC (AA): Free Stock Analysis Report FORD MOTOR CO (F): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report To read this article on Zacks.com click here.
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This week's list includes Alcoa (NYSE: AA - Free Report ), Ford (NYSE: F - Free Report ), United (NYSE: UAL - Free Report ), American (NASDAQ: AAL - Free Report ) and Apple (NASDAQ: AAPL - Free Report ). Get the full Report on AA - FREE Get the full Report on F - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on AAPL - 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 ALCOA INC (AA): Free Stock Analysis Report FORD MOTOR CO (F): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report APPLE INC (AAPL): Free Stock Analysis Report To read this article on Zacks.com click here.
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This week's list includes Alcoa (NYSE: AA - Free Report ), Ford (NYSE: F - Free Report ), United (NYSE: UAL - Free Report ), American (NASDAQ: AAL - Free Report ) and Apple (NASDAQ: AAPL - Free Report ). Tough comparisons at Ford (NYSE: F - Free Report ) and the air carriers, particularly United (NYSE: UAL - Free Report ) and American (NASDAQ: AAL - Free Report ), explain the growth issues in those two sectors. Get the full Report on AA - FREE Get the full Report on F - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on AAPL - 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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a0f2d076-a06b-4467-ac8d-c3bb9ac4c122
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7816.0
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2016-09-30 00:00:00 UTC
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Alaska Air Group (ALK) to Initiate Flights to Havana Next Year
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AAL
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https://www.nasdaq.com/articles/alaska-air-group-alk-to-initiate-flights-to-havana-next-year-2016-09-30
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nan
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nan
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Seattle, WA-based Alaska Air GroupALK recently announced its intention to commence flights to the Cuban capital of Havana from Jan 5, 2017. Late last month, the carrier gained approval from the U.S. Department of Transportation (DOT) to fly to Havana.
The carrier intends to start its journey from Seattle to Los Angeles and then fly to Havana upon receiving approval from the Cuban government. Alaska Air Group is the only U.S. carrier to have received approval for daily non-stop flights between Havana and the U.S. West Coast. According to a media report , the carrier was originally scheduled to start flying to Havana from Nov 29, 2016. However, it requested for permission to delay due to the upcoming holiday season rush.
Notably, Alaska Air Group is not the only carrier to gain approval from the U.S. DOT to Havana. A total of eight U.S.-based carriers, including Delta Air Lines DAL , American Airlines Group AAL and United Continental Holdings UAL , have been permitted to start flights to Cuba. The approval is a major positive as diplomatic ties with Cuba were severed more than 50 years ago. Even now, travel to Cuba is permitted only for purposes like family visits, education, journalism and humanitarian projects.
Visit to the nation for tourism is still prohibited, which would likely have been purpose of visit if the launch was during the holiday season. Alaska Air Group, while requesting for the delay, had apparently cited this clause and said that travel for the permitted purposes was more likely if its service was launched in early January, thereby increasing the chances of the new route being a success.
ALASKA AIR GRP Price
ALASKA AIR GRP Price | ALASKA AIR GRP Quote
Apart from the Havana-related update, Alaska Air Group is in news due to its proposed acquisition of Virgin America VA . To allow the antitrust division of the United States Department of Justice (DOJ) more time to review the proposed buyout, the two companies have agreed not to close the deal before Oct 17 (unless the DOJ provides written concurrence to close earlier) as opposed to the earlier date of Sep 30.
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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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A total of eight U.S.-based carriers, including Delta Air Lines DAL , American Airlines Group AAL and United Continental Holdings UAL , have been permitted to start flights to Cuba. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. Seattle, WA-based Alaska Air GroupALK recently announced its intention to commence flights to the Cuban capital of Havana from Jan 5, 2017.
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A total of eight U.S.-based carriers, including Delta Air Lines DAL , American Airlines Group AAL and United Continental Holdings UAL , have been permitted to start flights to Cuba. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. ALASKA AIR GRP Price ALASKA AIR GRP Price | ALASKA AIR GRP Quote Apart from the Havana-related update, Alaska Air Group is in news due to its proposed acquisition of Virgin America VA .
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Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. A total of eight U.S.-based carriers, including Delta Air Lines DAL , American Airlines Group AAL and United Continental Holdings UAL , have been permitted to start flights to Cuba. ALASKA AIR GRP Price ALASKA AIR GRP Price | ALASKA AIR GRP Quote Apart from the Havana-related update, Alaska Air Group is in news due to its proposed acquisition of Virgin America VA .
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Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. A total of eight U.S.-based carriers, including Delta Air Lines DAL , American Airlines Group AAL and United Continental Holdings UAL , have been permitted to start flights to Cuba. Alaska Air Group is the only U.S. carrier to have received approval for daily non-stop flights between Havana and the U.S. West Coast.
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3474b3c0-ff3d-4fa7-bcf5-16038e97f1eb
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7817.0
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2016-09-30 00:00:00 UTC
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Commodities, Infrastructure, And Demographics: The China Plan
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AAL
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https://www.nasdaq.com/articles/commodities-infrastructure-and-demographics-china-plan-2016-09-30
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nan
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nan
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By Colin Lloyd :
This year several commodity markets saw significant price increases. I discussed this here :
Over the last six months, the US economy has maintaining momentum, albeit at a disappointingly modest pace. Elsewhere, the economic headwinds are blowing harder, with Europe and Japan still mired in a "slow-growth/no-growth" environment. Yet during the last few weeks the spot price of premium coking coal - one of the key inputs for steel production - has doubled to more than $200/tonne. Although this is from multi-year lows seen in 2015, coking coal is now the top performing commodity market year to date:
Source: Steel Index, Amcharts.com
According to CME data , the futures curve for Australian Coking Coal is in steep backwardation out to December 2017 delivery. This suggests a short-term supply shortage rather than a generalised increase in demand. Mining.com's article "Stunning coking coal rally wreaks havoc in steel, iron ore" explains what has been happening:
Sources: TSI, Bloomberg, SGX.
The price of Iron Ore has also risen by 31% to around $55/tonne, but, as the chart above makes clear, the ratio between the price of iron ore and coking coal is now at its lowest this century.
China's coking coal output has fallen more than 10% due to the government edict to curtail domestic production. In response, import volumes rose 45% in August alone. Goldman Sachs and Macquarie have both increased their price forecasts for 2017 and 2018.
The National Development and Reform Commission (NDRC) - the agency responsible for implementing production cuts - had achieved only 39% of the annual target for reducing coal capacity and 47% of the annual reduction in steel capacity as of the end of July. Peterson Institute's report "State of Play in the Chinese Steel Industry" explains the reasons for this policy. Suffice to say, China's domestic steel production tripled between 2005 and 2015 taking its share of global steel production from 31% to 50%. Under WTO rules, it will have Market Economy Status from December 2016 - a wave of anti-dumping lawsuits may well follow unless it curtails production.
Despite common knowledge of official policy, commentators have suggested that the recent production cut was intended to deliberately squeeze coal prices, allowing heavily indebted coal producers to repay loans to domestic Chinese banks. After two meetings between the China Iron and Steel Association and the NDRC, coal producers will now be allowed to produce an additional 50 tonne/day from October to alleviate shortages.
The steel industry was under margin pressure even before the rise in coal prices - the government has been forcing an industry-wide consolidation. The high price of coal accelerates this "oligopolisation" of the sector. It is part of a broader reform and consolidation of state-owned enterprises (SOEs).
Peterson Institute's "China's SOE Reform - The Wrong Path" takes issue with this policy. It has its attractions in the short-term nonetheless - consolidation reduces competition within industries, the pricing power of these consolidated "oligopolies" should rise, enabling them to increase profitability and reduce their indebtedness. President Xi has called for "Stronger, bigger, better" state-owned enterprises. I fear for the squeezed private sector in this environment.
A more important structural reform was announced last month when the Supreme People's Court ordered the establishment of more special divisions to handle liquidation and bankruptcy cases in intermediate courts. China has an undeveloped bankruptcy code - defaulting borrowers linger, acting as a drag on the economy. At the G20 summit, President Xi said, "China has taken the most robust and solid measures in cutting excess capacity and we will honour our commitment with actions." An efficient method of "zombie corporation liquidation" would expedite this process.
Another explanation for the government's decision to reduce the number working days at coal mines is its commitment to reducing pollution. Brookings' article "The end of coal-fired growth in China" looks at the bigger picture:
The authors present three arguments to support their view that China's reliance on coal is in structural decline. Firstly, a decrease in manufacturing and construction, which have seen over-investment during the last decade or more. Second, policies on climate change and air pollution - especially the Paris Agreement's, signed this month, which calls for a 20% clean energy target by 2030. (Read The China-United States Exchange Foundation's piece "After the Paris Climate Agreement, What's Next?" for more details.) Finally, China's adoption of technological innovation in energy, communications, and manufacturing.
In his G20 speech, President Xi said "…green mountains and clear water are as good as mountains of gold and silver." The problem of clean water is probably the single greatest resource challenge facing China today as this article from CEAC, "China that once thrived on water, faces water problems today," points out:
In the shorter term, there has been some increase in demand. Steel usage has risen in response to the mini-stimulus package implemented in April. It was aimed largely at railway and housing construction. Electricity demand picked up again in May +2.1% from April +1.9%, fuelling an increase in demand for thermal coal. Other leading indicators, also suggest that the slowdown in Chinese growth may have run its course. There has been an increase in railway freight volumes and pickup in copper output:
(click to enlarge)
Sources: Market Realist, National Bureau of Statistics.
Outside China, the picture looks mixed. LME stocks of Copper and Zinc have recovered but Nickle and Aluminium stocks remain depleted. Global demand still appears to be subdued.
The Chinese economy is unlikely to return to the double-digit growth rates seen prior to the great recession, but, despite its indebtedness, the world's largest command economy may be able to avoid an imminent banking crisis.
The Debt to GDP ratio continues to rise. A source of grave concern which is noted in the BIS Quarterly Review dated September 2016. At the end of July, total Chinese debt reached $28trln - greater than the government debt of the US and Japan combined. Corporate debt, which is fortunately denominated primarily in local currency, now stands at 171% of GDP whilst total debt stands at 255%. A favourite BIS measure is the Credit to GDP gap. A figure above 10 is a warning signal that an economy may be approaching a "Minsky Moment" - China scores 30.1, the highest of any large economy.
China has also continued to reduce its vast foreign exchange reserves, although at a more moderate pace than in 2014 and 2015. In July, it reduced its holding of US Treasuries by $22bln - the largest one-month decline in three years. It also released information about its gold holdings, which as many market participants had predicted, have risen substantially - it last reported this information in 2009. The US Bond sales may, therefore, have been to insure the stability of the RMB versus the US$ ahead of the G20 summit which was hosted by China this month.
Should we be concerned about a Chinese banking crisis? According to Michael Pettis's article "China Financial Markets - Does it matter if China cleans up its banks?," banking solvency is not the issue, but the indebtedness of the economy is:
Pettis remains pessimistic about China's ability to grow its way out of debt. History is certainly on his side in this respect. However, policies such as the One Belt One Road Initiative, which aims to improve cross-border infrastructure in order to reduce transportation costs between China and its trading partners, still makes sense at this stage of China's development.
Comparisons have been made with the US Marshall Plan which helped to regenerate Europe after WWII but with an indicated aim of financing $4 trln of new projects, its scale is much larger. Chatham House reviews the policy in detail in "Westward ho-the China dream and 'one belt, one road': Chinese foreign policy under Xi Jinping," as does Peterson Institute in " China's Belt and Road Initiative ."
Meanwhile, the great rebalancing towards domestic consumption continues, at what, in other countries, would be considered breakneck speed. This may, nonetheless, be too slow for China - the mini-stimulus package, in April, was a clear political capitulation. The Kansas City Federal Reserve report "Consumer Spending in China: The Past and the Future" looks at the success of rebalancing to date and the prospects going forward.
They point out that Chinese consumption as a share of GDP declined between 1970 and 2000 largely as a result of demographic forces - low birth rate and aging population - together with urbanisation. Post 2000 rapid house price appreciation accelerated this trend. Since 2010 consumption has begun to rise from a low point of 37% of GDP, this coincides with the peak in household savings at 42% - it is now around 38.5%. The authors predict:
Parallels have been made with Japan where the savings rate has declined from 40% to 19% of GDP since 1970. If China follows this pattern, savings as a percentage of income will continue to decline. The transition could be relatively smooth provided the residential property market does not collapse in the interim. The FRBKC article concludes:
In the long run, demographic forces will affect China more than any other factor. According to the Ministry of Human Resources , China's working population hit a record 774.5 mln in 2015, however, the UN estimate China will have 212 mln fewer workers by 2050 (the UN Demographic Profile is found on page 189).
Market impact and investment opportunities
Next week, the RMB will be included in the SDR - the Peterson Institute piece "China's Renminbi Is about to Break the Financial Glass Ceiling" discusses this in more detail. There is widespread speculation that the PBoC will widen the RMB currency bands at any moment. In other respects, the PBoC is in a more difficult position. The RMB has already weakened by 5% against the US$ this year.
Cutting interest rates would probably cause the currency to weaken further, riling the US voters ahead of the election. They are not impotent, however, and injected a record RMB 310 bln into the money market in August - part of an overt policy to support the official banking sector, diminishing the influence of shadow banks.
Domestic investors have favoured bonds over equities for the past couple of months, while the spread between corporate bonds and government bonds has narrowed. Chinese 10yr government bond yields have fallen around 50bp this year, but official policy, encouraging investors to purchase higher yielding bonds and reduce their exposure to leveraged wealth management products and other non-standard assets, is boosting demand for corporate issues.
Retail investors, who were badly burnt in the stock market collapse of 2015, remain obsessed with the property market despite massive oversupply. Equity broker margin balances remain low. Institutional portfolio managers have reduced exposure to stocks from 62% in July to 49% this month. In the post-crash environment, IPO issuance has been subdued with only RMB 955bln of capital raised in the seven months to July.
This compares to RMB 1.55trln in 2015. The final quarter may see better sentiment. Stocks may get a boost from local government spending in Q3 and Q4 - if only to insure their budgets are not reduced next year. The table below, from Star Capital, ranks forty of the world's major stock markets. Using their metrics, China is second cheapest and has the lowest P/E, Price to Cash flow and Price to Book:
Source: Starcapital.de.
The Shanghai Composite Index ("SHCOMP") is down 8.85% YTD and by 41.84% since its high in June 2015, however it is up 48.25% from June 2014. Russia's RTS Index by contrast is up 72.81% from its December 2014 low but still 29.68% below its level of June 2014.
Looking outside China, several Australia-centric mining stocks have already risen on the back of the move in coking coal but it seems unlikely that the supply imbalance will prove protracted. Anglo American ( AAL ) is still looking to sell more of its Australian coal mines - they may well find Chinese buyers.
Outside of China, infrastructure investment across Asia Pacific is on the rise, which is supportive for industrial commodities in general. KPMG's " 10 emerging trends in 2016 ," published in January, takes a very optimistic long-term view:
Commodity markets tend to exhibit very individual characteristics; however, several industrial and agricultural commodities have formed a longer-term base this year. Is this the beginning of the next commodity super-cycle? It's too soon to call, but without a rise in global demand, the prospects for substantial gains are likely to be limited - Indian GDP growth is slowing.
The IMF WEO July update revised its India GDP forecast for 2016 to 7.4% from 7.5% - in 2015, it was 7.6%. Its China forecast was revised up 0.1% and its overall Emerging Market and Developing Economy forecast for 2016 and 2017 was unchanged at 4.1% and 4.6%, although, world economic growth was revised 0.1% lower.
China's stock market remains cheap by many metrics, but the level of indebtedness is an impediment to economic growth. The property market, although oversupplied, continues to attract investment, but this is economically unproductive in the long run. Government policy is attempting to steer the economy towards higher domestic consumption and technologically driven, productivity enhancing, investments. Environmental issues are finally being addressed, yet the challenge of clean water remains substantial.
Near term, debt reduction - and it has yet to begin - will hamper growth, which will, in turn, reduce the attractiveness of Chinese stocks. Reform of the SOEs will involve consolidation into a smaller number of vast enterprises. Private enterprises will suffer. "Zombie" companies will start to be dealt with as bankruptcy procedures become standardised, but, as with all policy in China, a gradualist approach is likely to be implemented. Commodity markets may continue to rise due to supply side factors but I doubt that Chinese demand will rebound even to the level of 2013/2014, let alone the early part of the century.
See also A New Era For Monetary Policy In India on seekingalpha.com
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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Anglo American ( AAL ) is still looking to sell more of its Australian coal mines - they may well find Chinese buyers. They point out that Chinese consumption as a share of GDP declined between 1970 and 2000 largely as a result of demographic forces - low birth rate and aging population - together with urbanisation. Market impact and investment opportunities Next week, the RMB will be included in the SDR - the Peterson Institute piece "China's Renminbi Is about to Break the Financial Glass Ceiling" discusses this in more detail.
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Anglo American ( AAL ) is still looking to sell more of its Australian coal mines - they may well find Chinese buyers. Although this is from multi-year lows seen in 2015, coking coal is now the top performing commodity market year to date: Source: Steel Index, Amcharts.com According to CME data , the futures curve for Australian Coking Coal is in steep backwardation out to December 2017 delivery. Chatham House reviews the policy in detail in "Westward ho-the China dream and 'one belt, one road': Chinese foreign policy under Xi Jinping," as does Peterson Institute in " China's Belt and Road Initiative ."
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Anglo American ( AAL ) is still looking to sell more of its Australian coal mines - they may well find Chinese buyers. Brookings' article "The end of coal-fired growth in China" looks at the bigger picture: The authors present three arguments to support their view that China's reliance on coal is in structural decline. According to Michael Pettis's article "China Financial Markets - Does it matter if China cleans up its banks?," banking solvency is not the issue, but the indebtedness of the economy is: Pettis remains pessimistic about China's ability to grow its way out of debt.
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Anglo American ( AAL ) is still looking to sell more of its Australian coal mines - they may well find Chinese buyers. Although this is from multi-year lows seen in 2015, coking coal is now the top performing commodity market year to date: Source: Steel Index, Amcharts.com According to CME data , the futures curve for Australian Coking Coal is in steep backwardation out to December 2017 delivery. The Debt to GDP ratio continues to rise.
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94300c52-072b-4f7b-930a-446327372880
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7818.0
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2016-09-30 00:00:00 UTC
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Will The Alaska Air-Virgin America Deal Get Delayed?
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AAL
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https://www.nasdaq.com/articles/will-alaska-air-virgin-america-deal-get-delayed-2016-09-30
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nan
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nan
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Alaska Air faced yet another hurdle in its acquisition of Virgin America, in a deal worth $2.6 billion. The deal has been under the lens of the Department of Justice for a while now, to assess for any anti-trust issues. Earlier in May, the two carriers had received a "second request" for more information. Although the request was termed customary, it delayed the closing of the deal by at least 30 days. Since then, another extension has been asked for by the DoJ, in order to complete the review. This, in turn, has made investors wary, causing Alaska's stock to dip.
Fall in Alaska's Stock Price- An Over-reaction
However, according to our analysis , the deal should pass the anti-competition review quite smoothly, as its share of the U.S. market, even after the combination, would remain really small as compared to the legacy carriers, who together dominate over 60% of the market.
On a related note, Virgin America's flight attendants, recently, rejected the salary contract negotiated by its union, creating confusion on the way forward for the two airlines. The contract would have provided an immediate 7.5% pay hike, in addition to a signing bonus. Further, Virgin's employees could have expected pay hikes after the completion of the merger. The affect of the rejection of the contract is two-fold. On one hand, Virgin's employees, who are paid a considerably lower salary, will see no instant improvement in their pay, missing out on raises until integration completes. Apart from that, 8% of the work-force at Virgin is expected to be laid-off. On the other hand, this dismissal will deter the two airlines from achieving operational efficiency at the get-go. This comes as a blow to Alaska's management, which hoped to quickly integrate the two airlines, their employees, and reservation systems, in order to realize the operational synergies.
The market's reaction to the two snippets of news can be read as mostly an over-reaction. Trefis believes that the deal between Alaska Air and Virgin America will be successfully completed before the end of the year, without any litigation issues. Consequently, the stock should bounce back to levels seen earlier in the year.
Have more questions about Alaska Air ( ALK )? See the following links:
Why Are The Air Fares Offered By The U.S. Airlines Falling?
What Is The Role Of Passenger Airlines In The Air Cargo Industry?
How Did Alaska Air Perform Operationally In August?
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
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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On a related note, Virgin America's flight attendants, recently, rejected the salary contract negotiated by its union, creating confusion on the way forward for the two airlines. 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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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? 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. 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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Trefis believes that the deal between Alaska Air and Virgin America will be successfully completed before the end of the year, without any litigation issues. 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's Market Share Change Post The Virgin America Deal?
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Trefis believes that the deal between Alaska Air and Virgin America will be successfully completed before the end of the year, without any litigation issues. How Will Alaska Air's Market Share Change Post The Virgin America Deal? How Will Alaska Air Benefit From The Virgin America Deal Operationally?
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0f364137-f2f9-48d6-922a-ebf2917895a2
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7819.0
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2016-09-27 00:00:00 UTC
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Nasdaq 100 Movers: GILD, NCLH
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-gild-nclh-2016-09-27
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nan
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nan
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In early trading on Tuesday, shares of Norwegian Cruise Line Holdings ( NCLH ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.2%. Year to date, Norwegian Cruise Line Holdings has lost about 35.3% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Gilead Sciences ( GILD ), trading down 1.2%. Gilead Sciences is lower by about 21.3% looking at the year to date performance.
Two other components making moves today are Amgen ( AMGN ), trading down 0.9%, and American Airlines Group ( AAL ), trading up 3.0% on the day.
VIDEO: Nasdaq 100 Movers: GILD, NCLH
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 Amgen ( AMGN ), trading down 0.9%, and American Airlines Group ( AAL ), trading up 3.0% on the day. In early trading on Tuesday, shares of Norwegian Cruise Line Holdings ( NCLH ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.2%. Year to date, Norwegian Cruise Line Holdings has lost about 35.3% of its value.
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Two other components making moves today are Amgen ( AMGN ), trading down 0.9%, and American Airlines Group ( AAL ), trading up 3.0% on the day. In early trading on Tuesday, shares of Norwegian Cruise Line Holdings ( NCLH ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.2%. Year to date, Norwegian Cruise Line Holdings has lost about 35.3% of its value.
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Two other components making moves today are Amgen ( AMGN ), trading down 0.9%, and American Airlines Group ( AAL ), trading up 3.0% on the day. In early trading on Tuesday, shares of Norwegian Cruise Line Holdings ( NCLH ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.2%. And the worst performing Nasdaq 100 component thus far on the day is Gilead Sciences ( GILD ), trading down 1.2%.
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Two other components making moves today are Amgen ( AMGN ), trading down 0.9%, and American Airlines Group ( AAL ), trading up 3.0% on the day. In early trading on Tuesday, shares of Norwegian Cruise Line Holdings ( NCLH ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.2%. And the worst performing Nasdaq 100 component thus far on the day is Gilead Sciences ( GILD ), trading down 1.2%.
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0720b739-e161-4d73-8dc3-bd4a87636c16
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7820.0
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2016-09-27 00:00:00 UTC
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American Airlines: Is Unit Revenue Growth Right Around the Corner?
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AAL
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https://www.nasdaq.com/articles/american-airlines-unit-revenue-growth-right-around-corner-2016-09-27
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nan
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nan
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Despite earning record profits, U.S. airlines have been on their heels for the past year or so due to persistent unit revenue declines. Top carriers like American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) have slashed their capacity plans multiple times in the last year in order to stabilize unit revenue. So far, they haven't succeeded.
However, the unit revenue trajectory is finally starting to improve at American Airlines. This could potentially enable the company to return to modest unit revenue growth within the next two to three quarters.
Delta's false recovery
During 2015, Delta Air Lines posted shallower unit revenue declines than American Airlines. By the end of the year, it appeared to be on the road to recovery. Indeed, Delta's passenger revenue per available seat mile (PRASM) fell just 1.6% year over year in Q4 2015. This supported management's frequent assertions that Delta would return to unit revenue growth before its rivals.
US Dollar to Brazilian Real Exchange Rate , data by YCharts .
As a result, there is an outside chance that American Airlines could return to (modest) unit revenue growth in Q4. If that proves too challenging, additional tailwinds will arrive in early 2016, including another step up in credit card revenue and the rollout of new basic economy fares and international premium economy seats.
American Airlines could beat Delta to the punch
In recent weeks, Delta executives have repeated their contention that Delta will be the first legacy carrier to return to unit revenue growth. However, American Airlines' fast-moving unit revenue recovery could spoil Delta's plans.
American Airlines stock has been falling out of favor among some airline analysts after it surged more than 50% between late June and early September. But if American can return to unit revenue growth by late 2016 or early 2017, the stock will probably continue its ascent.
A secret billion-dollar stock opportunity
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Adam Levine-Weinberg is long January 2017 $30 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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Top carriers like American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) have slashed their capacity plans multiple times in the last year in order to stabilize unit revenue. Despite earning record profits, U.S. airlines have been on their heels for the past year or so due to persistent unit revenue declines. A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology.
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Top carriers like American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) have slashed their capacity plans multiple times in the last year in order to stabilize unit revenue. Delta's false recovery During 2015, Delta Air Lines posted shallower unit revenue declines than American Airlines. As a result, there is an outside chance that American Airlines could return to (modest) unit revenue growth in Q4.
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Top carriers like American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) have slashed their capacity plans multiple times in the last year in order to stabilize unit revenue. Delta's false recovery During 2015, Delta Air Lines posted shallower unit revenue declines than American Airlines. American Airlines could beat Delta to the punch In recent weeks, Delta executives have repeated their contention that Delta will be the first legacy carrier to return to unit revenue growth.
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Top carriers like American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) have slashed their capacity plans multiple times in the last year in order to stabilize unit revenue. Delta's false recovery During 2015, Delta Air Lines posted shallower unit revenue declines than American Airlines. However, American Airlines' fast-moving unit revenue recovery could spoil Delta's plans.
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7a7778b4-2ffb-47d6-924e-ba000ca4e2c2
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7821.0
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2016-09-26 00:00:00 UTC
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ViaSat: Air Business Prospects Bright, Competition a Drag
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AAL
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https://www.nasdaq.com/articles/viasat%3A-air-business-prospects-bright-competition-a-drag-2016-09-26
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nan
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nan
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On Sep 26, we issued an updated research report on ViaSat Inc.VSAT .
Headquartered in Carlsbad, CA, ViaSat is a global broadband services and technology company, enjoying a dominant position in the satellite and wireless communications market. The company continuously leverages on its advanced technology and competency to occupy major share of the market. ViaSat's sturdy government and commercial air business, in-flight Internet services and mobile broadband services have been propelling its growth momentum.
In particular, robust sales of government satellite communication systems and tactical data link products have been improving the company's government business. Moreover, ViaSat's Satellite business has been benefiting from growth in residential broadband offerings. These, in turn, hold brilliant prospects, as indicated by the year-over-year residential ARPU (Average revenue/user) growth of 8% to $60 per month, which is a new record.
Also, ViaSat's Commercial Air business is proving to be a key profit driver, strongly supplementing growth. Going forward, higher value service plans, including the recent 25-megabit speed boost, strategy to serve more people per plane and addition of other ancillary services looks promising. Additionally, ViaSat's in-flight Internet services are on a roll, winning lucrative contracts from leading commercial flights like Virgin America Inc. VA and American Airlines Group Inc. AAL . This is also proving to be conducive to top-line growth.
Previously, the company had entered into a partnership with Eutelsat Communications to integrate ViaSat's broadband technologies and consumer Internet Service Provider ("ISP") business expertise with Eutelsat's current European broadband business. This alliance is progressing extremely well, with the partners clinching some major contracts from leading airliners like Finnair and Scandinavian Airlines, during second-quarter fiscal 2017.
We believe that ViaSat's ambitious plans regarding its satellite business will also contribute to the company's growth. The company has garnered enough economics of scale and scope to serve vast emerging markets in South America, Africa, the Middle East and Western Asia. Momentous market traction of ViaSat-1 satellites, along with strategically planned launches of ViaSat-2 and ViaSat 3 satellites, are expected to provide ViaSat with a solid competitive edge over its peers, thereby bolstering growth.
Despite these positives, stiff competition in the industry proves to be a major growth deterrent for the company. While its satellite services segment faces stiff competition from companies like AT&T, Inc. T , the government systems segment has been grappling with challenges from aerospace and defense giants like General Dynamics Corporation. Rise in competition results in price reductions, reduced margins, and loss of market share, which adversely affect the results of operations, financial position, and cash flows.
Increasing operating costs are also posing as a major headwind for the company. ViaSat has been experiencing huge rise in research and development activities related to the launch of ViaSat-2 and ViaSat-3 satellites that are likely to hurt its margins and bottom line, going forward. For instance, in fiscal 2016, the company's discretionary R&D investments surged by over 61% year over year. Further, R&D expenses for ViaSat-3 for fiscal year 2017 are estimated to increase substantially, which are likely to put significant pressure on EBITDA.
The Defense Department's decision to reduce its budget by nearly $500 billion over the next decade may significantly impact ViaSat. This is because the company is highly dependent on the U.S. Government contracts for revenue generation. In the future, any additional Federal budgetary pressures may result in deeper-than-expected cuts in defense spending, which may affect the company's business prospects. This apart, the seasonality of demand materially impacts the Zacks Rank #3 (Hold) company's satellite services segment, thereby thwarting growth.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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
VIASAT INC (VSAT): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
VIRGIN AMERICA (VA): 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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Additionally, ViaSat's in-flight Internet services are on a roll, winning lucrative contracts from leading commercial flights like Virgin America Inc. VA and American Airlines Group Inc. AAL . Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report AT&T INC (T): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. Headquartered in Carlsbad, CA, ViaSat is a global broadband services and technology company, enjoying a dominant position in the satellite and wireless communications market.
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Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report AT&T INC (T): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, ViaSat's in-flight Internet services are on a roll, winning lucrative contracts from leading commercial flights like Virgin America Inc. VA and American Airlines Group Inc. AAL . ViaSat's sturdy government and commercial air business, in-flight Internet services and mobile broadband services have been propelling its growth momentum.
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Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report AT&T INC (T): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, ViaSat's in-flight Internet services are on a roll, winning lucrative contracts from leading commercial flights like Virgin America Inc. VA and American Airlines Group Inc. AAL . Previously, the company had entered into a partnership with Eutelsat Communications to integrate ViaSat's broadband technologies and consumer Internet Service Provider ("ISP") business expertise with Eutelsat's current European broadband business.
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Additionally, ViaSat's in-flight Internet services are on a roll, winning lucrative contracts from leading commercial flights like Virgin America Inc. VA and American Airlines Group Inc. AAL . Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report AT&T INC (T): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. ViaSat's sturdy government and commercial air business, in-flight Internet services and mobile broadband services have been propelling its growth momentum.
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7b786e88-c2a7-4cb6-b882-6b329e5d85bf
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7822.0
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2016-09-23 00:00:00 UTC
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Virgin America Stock Declines as Merger Concerns Surface
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AAL
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https://www.nasdaq.com/articles/virgin-america-stock-declines-as-merger-concerns-surface-2016-09-23
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nan
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nan
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Virgin America Inc.'sVA stock tanked 4.4% on Sep 22, as new concerns have cropped up regarding its proposed acquisition by Alaska Air Group, Inc. ALK .
Per some media reports , the companies presented their merger proposal to the Justice Department officials last week. The companies' representatives are also reported to have had a meeting with the chief of antitrust division as well as other officials reviewing the merger. The main purpose of the review is to alleviate government concerns that the combined entity could hamper competition. Per reports, the companies have agreed not to close up till Sep 30 by which they possibly expect a response from the Justice Department.
Another major setback for Virgin America, which carries a Zacks Rank #5 (Strong Sell), was the rejection of a tentative agreement by flight attendants earlier this week. This contract was expected to become effective once the merger deal closed by the end of this year. Further discussions on the vote are expected to be held between the union representing flight attendants and Virgin America's management. It remains to be seen if the involved parties iron out their differences and the merger plans proceed as expected.
Deal Timeline
Alaska Air and Virgin America have been in talks regarding the merger over the past several months. The acquisition was first proposed around April this year. In July, Alaska Air mentioned that it expected the takeover to be completed in the fourth quarter of 2016. However, the deal is shrouded in uncertainty at present and the possibility of it being completed by this year looks a bit unlikely. However, per media reports, a Virgin America spokesman reiterated that the company expects the deal to be closed in the fourth quarter of this year as planned initially. There has been no comment from Alaska Air or Department of Justice on this.
VIRGIN AMERICA Price
VIRGIN AMERICA Price | VIRGIN AMERICA Quote
Past Consolidations in the Airline Industry
There have been several consolidations in the past few years in the U.S. airlines industry. Some of the most significant ones were the merger between United Airlines and Continental Airlines, which created the combined entity United Continental Holdings Inc. UAL . Another notable merger was that of American Airlines with US Airways, which is now part of American Airlines Group Inc. AAL . Both United Continental and American Airlines carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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
ALASKA AIR GRP (ALK): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
VIRGIN AMERICA (VA): 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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Another notable merger was that of American Airlines with US Airways, which is now part of American Airlines Group Inc. AAL . Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. Virgin America Inc.'sVA stock tanked 4.4% on Sep 22, as new concerns have cropped up regarding its proposed acquisition by Alaska Air Group, Inc. ALK .
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Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. Another notable merger was that of American Airlines with US Airways, which is now part of American Airlines Group Inc. AAL . VIRGIN AMERICA Price VIRGIN AMERICA Price | VIRGIN AMERICA Quote Past Consolidations in the Airline Industry There have been several consolidations in the past few years in the U.S. airlines industry.
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Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. Another notable merger was that of American Airlines with US Airways, which is now part of American Airlines Group Inc. AAL . However, per media reports, a Virgin America spokesman reiterated that the company expects the deal to be closed in the fourth quarter of this year as planned initially.
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Another notable merger was that of American Airlines with US Airways, which is now part of American Airlines Group Inc. AAL . Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report VIRGIN AMERICA (VA): Free Stock Analysis Report To read this article on Zacks.com click here. Per some media reports , the companies presented their merger proposal to the Justice Department officials last week.
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e79c54e8-b5c8-4c95-8873-8973755c8783
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7823.0
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2016-09-21 00:00:00 UTC
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Nasdaq 100 Movers: NFLX, ADBE
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-nflx-adbe-2016-09-21
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nan
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nan
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In early trading on Wednesday, shares of Adobe Systems ( ADBE ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.7%. Year to date, Adobe Systems registers a 14.3% gain.
And the worst performing Nasdaq 100 component thus far on the day is Netflix ( NFLX ), trading down 3.7%. Netflix is lower by about 17.3% looking at the year to date performance.
Two other components making moves today are American Airlines Group ( AAL ), trading down 1.6%, and Baidu ( BIDU ), trading up 4.3% on the day.
VIDEO: Nasdaq 100 Movers: NFLX, ADBE
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 1.6%, and Baidu ( BIDU ), trading up 4.3% on the day. In early trading on Wednesday, shares of Adobe Systems ( ADBE ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.7%. And the worst performing Nasdaq 100 component thus far on the day is Netflix ( NFLX ), trading down 3.7%.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 1.6%, and Baidu ( BIDU ), trading up 4.3% on the day. Year to date, Adobe Systems registers a 14.3% gain. VIDEO: Nasdaq 100 Movers: NFLX, ADBE 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 1.6%, and Baidu ( BIDU ), trading up 4.3% on the day. In early trading on Wednesday, shares of Adobe Systems ( ADBE ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.7%. And the worst performing Nasdaq 100 component thus far on the day is Netflix ( NFLX ), trading down 3.7%.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 1.6%, and Baidu ( BIDU ), trading up 4.3% on the day. In early trading on Wednesday, shares of Adobe Systems ( ADBE ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.7%. And the worst performing Nasdaq 100 component thus far on the day is Netflix ( NFLX ), trading down 3.7%.
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98f6d1d9-4b9f-4f14-ad61-5d7f975df98f
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7824.0
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2016-09-21 00:00:00 UTC
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Why Netflix, Inc. (NFLX), American Airlines Group Inc (AAL) and Skechers USA Inc (SKX) Are 3 of Today’s Worst Stocks
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AAL
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https://www.nasdaq.com/articles/why-netflix-inc.-nflx-american-airlines-group-inc-aal-and-skechers-usa-inc-skx-are-3-of
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nan
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
All eyes were on Janet Yellen this afternoon, waiting for the Federal Reserve chairperson to catapult stocks higher or send them into a tailspin. When the decision to not raise interest rates was packaged with a still-optimistic bent, investors weren't sure what to think … initially. They made a decision soon enough. The S&P 500 ended the session at 2,163.12, up 1.09%, and putting pressure on a key technical ceiling.
Not every name rode the bullish wave though. Skechers USA Inc (NYSE: SKX ), American Airlines Group Inc (NASDAQ: AAL ) and Netflix, Inc. (NASDAQ: NFLX ) were all sent markedly lower thanks to brewing analyst doubts.
Netflix, Inc. (NFLX)
It's a concern that has been swirling in the market's ether for a while now, but it at least partially solidified for Netflix shareholders today. That is, the company's subscriber growth appears to be slowing, and Q3's subscriber additions figure may validate that worry.
Data mining company M Science presented the idea, explaining its information suggested Netflix isn't going to add any net subscribers for the quarter about to end. Higher subscription prices means the company is losing members just as quickly (or just as slowly) as it is adding them. NFLX had projected net growth of 400,000 subscribers for the third quarter, and analysts were predicting 351,000 net additions.
Fanning the bearish flames that burned NFLX on Wednesday was this detailed look at the company's problems by Forbes contributor David Trainer. Namely, shrinking margins and an increasing cash burn . He makes a case that's tough to argue with.
7 Energy Stocks You Need to Dump Right Now
NFLX ended the day down 3.4%.
American Airlines Group Inc (AAL)
NFLX wasn't the only name to suffer a downgrade on Wednesday. American Airlines Group shares fell 1.4% after Raymond James lowered its opinion on the airline and the current valuation of AAL stock.
Raymond James analysts Savanthi Syth and Matt Roberts cut their stance on AAL from an "Outperform" to a "Market perform," explaining :
"We are downgrading American Airlines from Outperform to Market Perform due to relative valuation compared to legacy peers and downside to consensus despite anticipated favorable RASM trends… Our 2016E and 2017E EPS are lowered from $5.25 to $5.20 (-9% y/y on a tax-adjusted basis) and $5.30 to $4.35 (-16% y/y), respectively, primarily reflecting the new mechanics contract. We are also introducing 2018E EPS of $5.30 (+22% y/y). These compare to consensus of $5.43, $4.83, and $4.95, respectively… we expect a sharper decrease in annual buybacks at American in 2017, albeit from levels well above that of its peers. A curtailment is expected in 2019 due to an increase in debt repayment, pension payments, and potential cash taxes (likely in 2019 or 2020). However, this is unlikely to be focus for investors in the near term."
Roberts and Syth also noted that AAL shares were more expensive, based on earnings, compared to stocks of peersDelta Air Lines, Inc. (NYSE: DAL ) and United Continental Holdings Inc (NYSE: UAL ).
Skechers USA Inc (SKX)
Finally, like NFLX and AAL, Skechers was downgraded today, inspiring more selling than most stocks experienced for the session.
Morgan Stanley did the deed, sending SKX down 8.7% when it lowered its stance on the shoemaker to only an "Equal weight," simultaneously lowering its 2016 earnings estimate for the company from $2.25 per share of SKX to only $1.85 per share. Morgan Stanley also lowered its price target on SKX from $41 to $25, citing logistical problems stemming from a transition to new shoe fashions.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
More From InvestorPlace
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The post Why Netflix, Inc. (NFLX), American Airlines Group Inc (AAL) and Skechers USA Inc (SKX) Are 3 of Today's Worst Stocks 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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Raymond James analysts Savanthi Syth and Matt Roberts cut their stance on AAL from an "Outperform" to a "Market perform," explaining : "We are downgrading American Airlines from Outperform to Market Perform due to relative valuation compared to legacy peers and downside to consensus despite anticipated favorable RASM trends… Our 2016E and 2017E EPS are lowered from $5.25 to $5.20 (-9% y/y on a tax-adjusted basis) and $5.30 to $4.35 (-16% y/y), respectively, primarily reflecting the new mechanics contract. Skechers USA Inc (NYSE: SKX ), American Airlines Group Inc (NASDAQ: AAL ) and Netflix, Inc. (NASDAQ: NFLX ) were all sent markedly lower thanks to brewing analyst doubts. American Airlines Group Inc (AAL) NFLX wasn't the only name to suffer a downgrade on Wednesday.
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Skechers USA Inc (NYSE: SKX ), American Airlines Group Inc (NASDAQ: AAL ) and Netflix, Inc. (NASDAQ: NFLX ) were all sent markedly lower thanks to brewing analyst doubts. Raymond James analysts Savanthi Syth and Matt Roberts cut their stance on AAL from an "Outperform" to a "Market perform," explaining : "We are downgrading American Airlines from Outperform to Market Perform due to relative valuation compared to legacy peers and downside to consensus despite anticipated favorable RASM trends… Our 2016E and 2017E EPS are lowered from $5.25 to $5.20 (-9% y/y on a tax-adjusted basis) and $5.30 to $4.35 (-16% y/y), respectively, primarily reflecting the new mechanics contract. The Top 10 S&P 500 Dividend Stocks to Buy Now The post Why Netflix, Inc. (NFLX), American Airlines Group Inc (AAL) and Skechers USA Inc (SKX) Are 3 of Today's Worst Stocks appeared first on InvestorPlace .
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Skechers USA Inc (NYSE: SKX ), American Airlines Group Inc (NASDAQ: AAL ) and Netflix, Inc. (NASDAQ: NFLX ) were all sent markedly lower thanks to brewing analyst doubts. Raymond James analysts Savanthi Syth and Matt Roberts cut their stance on AAL from an "Outperform" to a "Market perform," explaining : "We are downgrading American Airlines from Outperform to Market Perform due to relative valuation compared to legacy peers and downside to consensus despite anticipated favorable RASM trends… Our 2016E and 2017E EPS are lowered from $5.25 to $5.20 (-9% y/y on a tax-adjusted basis) and $5.30 to $4.35 (-16% y/y), respectively, primarily reflecting the new mechanics contract. The Top 10 S&P 500 Dividend Stocks to Buy Now The post Why Netflix, Inc. (NFLX), American Airlines Group Inc (AAL) and Skechers USA Inc (SKX) Are 3 of Today's Worst Stocks appeared first on InvestorPlace .
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Skechers USA Inc (NYSE: SKX ), American Airlines Group Inc (NASDAQ: AAL ) and Netflix, Inc. (NASDAQ: NFLX ) were all sent markedly lower thanks to brewing analyst doubts. American Airlines Group shares fell 1.4% after Raymond James lowered its opinion on the airline and the current valuation of AAL stock. The Top 10 S&P 500 Dividend Stocks to Buy Now The post Why Netflix, Inc. (NFLX), American Airlines Group Inc (AAL) and Skechers USA Inc (SKX) Are 3 of Today's Worst Stocks appeared first on InvestorPlace .
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a1ab00e5-5938-4584-8e19-06c23a61f758
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7825.0
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2016-09-18 00:00:00 UTC
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With Cuba Open for Business, How Can Investors Profit?
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AAL
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https://www.nasdaq.com/articles/cuba-open-business-how-can-investors-profit-2016-09-18
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nan
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nan
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Last month, a JetBlue (NASDAQ: JBLU) flight originating from Fort Lauderdale touched down in Santa Clara, a city in central Cuba. Upon landing, the plane was met with a water cannon salute, a traditional honor for flights or sea journeys that are notable in some respect.
This one qualified: It was the first commercial passenger flight between the two countries in more than 50 years, making it a powerful symbol of the thaw in Cuban-American relations. Closer ties mean stronger business links -- so let's explore whether this happy development can also bring in serious money for investors.
Slow change
Before we dive into that, we have to keep firmly in mind that the country is still run by veterans and devotees of the country's 1959 revolution -- the revolution installed an inflexible Communist government and economy.
The transition from that disaster of an economic model to one approaching modern capitalism has been gradual and tentative. Going forward, it will probably continue to evolve slowly. For nearly 60 years, the government has had a firm grip on even the most trivial aspects of Cuban society, and it won't let go easily. So while prominent companies based in the capitalist world are winning business in Cuba, their victories are limited. At the moment, many are effectively forced to partner with state-owned entities, and they often have other profitability-dampening restrictions.
For instance, Starwood Hotels & Resorts Worldwide , soon to be owned by Marriott International , has signed deals to operate three hotels in Havana. However, the trio will remain state-owned, and the company has agreed to spend millions of dollars renovating them.
Consumer goods multinational Unilever entered into a joint venture agreement with local state-owned peer Intersuchel. The resulting entity will produce consumer staples for the Cuban market. But Unilever's stake in the JV is only 60%, while the government-held partner owns the remainder.
Warm but not wealthy
In addition to being weighed down by a heavy-handed government, the country remains poor. Although its gross domestic product has grown, both in absolute and per-capita terms, it's still low compared to other markets. Per head, its GDP stood at just under $6,800 in 2013, according to the World Bank. That's below the level of some of the world's more sluggish emerging economies.
If Cuba takes bigger strides toward freeing up its business sector, its citizens stand a chance of getting substantially richer. But at the moment, it doesn't look like that's on the horizon. These steps toward capitalism are small and halting.
Outside of the above factors, we need to remember that at the moment, big multinationals are practically the only ones dipping their toes into the island's warm waters.
Cuba's a big island, but it's a small fish in the global market in which these companies operate. Even if the country ends up being a resounding success for them, it probably won't make a major difference in their results.
Caribbean skies
There is one sector that shows brighter promise, though: tourism, specifically the transportation segment.
JetBlue is one of seven publicly traded carriers that have been tentatively approved by our government to fly into Cuba. The others are American Airlines (NASDAQ: AAL) , Alaska Airlines (NYSE: ALK) , Delta (NYSE: DAL) , Southwest , United , and Spirit . The big caveat is that the government is limiting these companies to only a few daily flights connecting the most tantalizing of the destinations: Havana.
Image source: Havana.
Out of that pack, American Airlines is the big winner: It will offer five direct flights per day to the capital, four of which are to originate in Miami (home to a large Cuban-American population). Also carving out early niches are Delta, which will fly from Atlanta and Miami and run a once-daily route from New York's JFK, and Alaska Airlines. On the West Coast, Alaska Airlines will operate its one daily Havana flight from Los Angeles, with a plane originating from Seattle.
The airlines haven't released revenue and traffic estimates for these routes. Regardless, they're sure to be popular, given the fascination with the country among many Americans, not to mention the number of people of Cuban descent in the States.
This Fool's take
These are exciting times for the two countries, which, considering their proximity (they're only 90 miles apart) should be natural partners and collaborators.
Cuba has gone down the road of change, and it's probably too far to turn back now. The gradual opening of its market presents a good, if initially modest, opportunity for adventurous businesses. Investors could be rewarded if they choose carefully -- and if they're willing to wait.
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Eric Volkman has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Marriott International. The Motley Fool recommends Spirit Airlines. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The others are American Airlines (NASDAQ: AAL) , Alaska Airlines (NYSE: ALK) , Delta (NYSE: DAL) , Southwest , United , and Spirit . Last month, a JetBlue (NASDAQ: JBLU) flight originating from Fort Lauderdale touched down in Santa Clara, a city in central Cuba. Out of that pack, American Airlines is the big winner: It will offer five direct flights per day to the capital, four of which are to originate in Miami (home to a large Cuban-American population).
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The others are American Airlines (NASDAQ: AAL) , Alaska Airlines (NYSE: ALK) , Delta (NYSE: DAL) , Southwest , United , and Spirit . Consumer goods multinational Unilever entered into a joint venture agreement with local state-owned peer Intersuchel. The Motley Fool recommends Spirit Airlines.
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The others are American Airlines (NASDAQ: AAL) , Alaska Airlines (NYSE: ALK) , Delta (NYSE: DAL) , Southwest , United , and Spirit . Slow change Before we dive into that, we have to keep firmly in mind that the country is still run by veterans and devotees of the country's 1959 revolution -- the revolution installed an inflexible Communist government and economy. Out of that pack, American Airlines is the big winner: It will offer five direct flights per day to the capital, four of which are to originate in Miami (home to a large Cuban-American population).
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The others are American Airlines (NASDAQ: AAL) , Alaska Airlines (NYSE: ALK) , Delta (NYSE: DAL) , Southwest , United , and Spirit . But at the moment, it doesn't look like that's on the horizon. On the West Coast, Alaska Airlines will operate its one daily Havana flight from Los Angeles, with a plane originating from Seattle.
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59776fd6-e32a-446c-a4db-1e8eb92475ee
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7826.0
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2016-09-16 00:00:00 UTC
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ViaSat (VSAT) Rolls Out New Wi-Fi Service Plans for NCDOT
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AAL
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https://www.nasdaq.com/articles/viasat-vsat-rolls-out-new-wi-fi-service-plans-for-ncdot-2016-09-16
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nan
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nan
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Global broadband services and technology company, ViaSat Inc.VSAT , has signed an agreement to offer new Wi-Fi service plans to the North Carolina Department of Transportation (NCDOT) Rail Division. The service will cater to the Piedmont railway passengers traveling between Raleigh and Charlotte, NC.
Passengers will now be able to enjoy faster speed and more options when surfing the web, engaging in social media, checking and responding to email and staying connected while traveling, thanks to the tiered new service plans.
ViaSat has assisted NCDOT to launch their wireless Internet services onboard the Piedmont Rail earlier; and the new service will enable it to deliver a more consistent Wi-Fi experience with higher speed. ViaSat managed Wi-Fi services include end-to-end management of Wi-Fi networks, right from network design, installation and reporting to monitoring and end-user support.
Earlier this month, ViaSat and its long-time partner - Eutelsat - signed an agreement to provide in-flight Wi-Fi services with Finnair. The contract entails the installation of a high-speed wireless Internet network on the airline's entire Airbus A320 series short-haul fleet flying in Europe.This followed a similar contract with EL AL Israel Airlines, which is currently in the customer trials phase, and is scheduled to enter full retail service by the end of this year.
ViaSat has, to date, installed its system on about 500 commercial airplanes. This figure includes most of the United Continental Holdings, Inc.'s UAL Boeing 737 fleet as well as the JetBlue Airways' aircraft.
VIASAT INC Price and Consensus
VIASAT INC Price and Consensus | VIASAT INC Quote
ViaSat has been rapidly expanding its Wi-Fi business. In June, the company secured a contract to provide internet access on 100 new American Airlines Group AAL planes. The company is also reportedly supplying Wi-Fi to Air Force One and other government aircraft.
Further, ViaSat recently inked a multi-year agreement with leading aerospace company - Dassault Aviation - to deliver advanced Internet and corporate network access to operators. In addition, ViaSat secured a deal in February to deliver Wi-Fi services to the domestic fleet of Qantas Airways.
We believe that the company's significant contract wins will boost its leading position in end-markets, allowing it to gain a competitive edge over its peers.
ViaSat expects robust growth as it capitalizes on its competitive advantage and sturdy demand for its highly cost-effective satellite bandwidth products. The company projects strong growth opportunities in satellite services and government systems segments, which are expected drive top-line growth in the coming quarters.
ViaSat currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same space is Clearfield, Inc. CLFD , holding a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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VIASAT INC (VSAT): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
CLEARFIELD INC (CLFD): 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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In June, the company secured a contract to provide internet access on 100 new American Airlines Group AAL planes. Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report CLEARFIELD INC (CLFD): Free Stock Analysis Report To read this article on Zacks.com click here. Passengers will now be able to enjoy faster speed and more options when surfing the web, engaging in social media, checking and responding to email and staying connected while traveling, thanks to the tiered new service plans.
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Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report CLEARFIELD INC (CLFD): Free Stock Analysis Report To read this article on Zacks.com click here. In June, the company secured a contract to provide internet access on 100 new American Airlines Group AAL planes. ViaSat managed Wi-Fi services include end-to-end management of Wi-Fi networks, right from network design, installation and reporting to monitoring and end-user support.
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Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report CLEARFIELD INC (CLFD): Free Stock Analysis Report To read this article on Zacks.com click here. In June, the company secured a contract to provide internet access on 100 new American Airlines Group AAL planes. ViaSat managed Wi-Fi services include end-to-end management of Wi-Fi networks, right from network design, installation and reporting to monitoring and end-user support.
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In June, the company secured a contract to provide internet access on 100 new American Airlines Group AAL planes. Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report CLEARFIELD INC (CLFD): Free Stock Analysis Report To read this article on Zacks.com click here. ViaSat has assisted NCDOT to launch their wireless Internet services onboard the Piedmont Rail earlier; and the new service will enable it to deliver a more consistent Wi-Fi experience with higher speed.
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5620e264-f30f-4693-9046-5bc88f7828e3
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7827.0
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2016-09-14 00:00:00 UTC
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Nasdaq 100 Movers: AAL, VIAB
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-viab-2016-09-14
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nan
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nan
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In early trading on Wednesday, shares of Viacom topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.0%. Year to date, Viacom has lost about 7.9% of its value.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.3%. American Airlines Group is lower by about 13.8% looking at the year to date performance.
Two other components making moves today are Bed, Bath & Beyond, trading down 1.3%, and NetEase, trading up 2.9% on the day.
VIDEO: Nasdaq 100 Movers: AAL, VIAB
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, VIAB 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 2.3%. American Airlines Group is lower by about 13.8% looking at the year to date performance.
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VIDEO: Nasdaq 100 Movers: AAL, VIAB 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 2.3%. 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, VIAB 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 Wednesday, shares of Viacom topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.0%. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.3%.
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VIDEO: Nasdaq 100 Movers: AAL, VIAB 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 Wednesday, shares of Viacom topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.0%. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.3%.
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fe02ec61-ecd7-4399-a6a6-0ad65fbd507d
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7828.0
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2016-09-13 00:00:00 UTC
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American Airlines (AAL) Hurt by August Load Factor Decline
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-hurt-by-august-load-factor-decline-2016-09-13
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nan
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nan
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Shares of Fort Worth, TX-based American Airlines GroupAAL declined significantly following its dismal August report on Sep 12. However, the stock recovered to close the trading session at $38.34, down only 0.39% from the previous day's closing price.
Traffic measured in revenue passenger miles (RPMs) dipped 2.8% on a year-over-year basis to 20.4 billion. The downside was attributable to lackluster performances both on the international as well as domestic front.
Consolidated capacity (available seat miles/ASMs) inched up 1.4% to 24.7 billion in the month. However, load factor or the percentage of seats filled by passengers decreased to 82.9% from 86.5% in Aug 2015. This was primarily because capacity expanded but traffic contracted, leading to empty planes.
American Airlines is not the only carrier to report a decline in August load factor. Other carriers like United Continental Holdings UAL and Southwest Airlines LUV too reported declining load factors for August.
In the first eight months of 2016, American Airlines recorded 1% growth in RPMs to 152.3 billion, while ASMs climbed 2.5% to 186 billion, both on a year-over-year basis. Also, load factor declined 120 basis points year over year to 81.9%. Moreover, total passenger count (Enplanements) slipped 0.5% to 135.1 billion for the same period.
AMER AIRLINES Price
AMER AIRLINES Price | AMER AIRLINES Quote
View Maintained
American Airlines still expects its PRASM (passenger revenue per available seat mile: a key measure of unit revenue) to decline in the band of 3-5% for the third quarter of 2016. The company continues to expect a pre-tax margin of 12-14% for the third quarter.
Zacks Rank and a Key Pick
American Airlines carries a Zacks Rank #3 (Hold). A better-ranked stock in the airline space is Copa Holdings SA CPA , which sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today's Zacks #1 Rank stocks here .
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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 AIR (LUV): Free Stock Analysis Report
COPA HLDGS SA-A (CPA): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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Shares of Fort Worth, TX-based American Airlines GroupAAL declined significantly following its dismal August report on Sep 12. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Other carriers like United Continental Holdings UAL and Southwest Airlines LUV too reported declining load factors for August.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Fort Worth, TX-based American Airlines GroupAAL declined significantly following its dismal August report on Sep 12. Other carriers like United Continental Holdings UAL and Southwest Airlines LUV too reported declining load factors for August.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Fort Worth, TX-based American Airlines GroupAAL declined significantly following its dismal August report on Sep 12. AMER AIRLINES Price AMER AIRLINES Price | AMER AIRLINES Quote View Maintained American Airlines still expects its PRASM (passenger revenue per available seat mile: a key measure of unit revenue) to decline in the band of 3-5% for the third quarter of 2016.
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Shares of Fort Worth, TX-based American Airlines GroupAAL declined significantly following its dismal August report on Sep 12. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines is not the only carrier to report a decline in August load factor.
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6f545acc-9c1e-46ef-bad2-54ae61be4df8
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7829.0
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2016-09-13 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Qualcomm, Priceline, Walgreens, American Airlines and Pepsi
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-qualcomm-priceline-walgreens-american-airlines-and
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nan
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nan
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For Immediate Release
Chicago, IL - September 13, 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 Qualcomm ( QCOM ), Priceline ( PCLN ), Walgreens ( WBA ), American Airlines ( AAL ) and Pepsi ( PEP ).
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 Today
Today's must-read reports are for Qualcomm ( QCOM ), Priceline ( PCLN ) and Walgreens ( WBA ).
Shares of Qualcomm declined over the last trading session due to broader market concerns. But the analyst still likes the buy-rated stock for its leadership position in the global wireless baseband chipset market and its growing presence in related opportunities such as mobile computing and IoT. The company's new patent license agreements with Chinese smartphone makers should boost Qualcomm's top line and also solidify its footing in the Chinese market. (You can read the full research report on Qualcomm here. )
Priceline 's shares also moved lower over the last trading session due to rate hike related concerns. However, the analyst remains optimistic about the buy-rated stock since its strong quarterly report has helped sustain the stock's positive momentum, which reflect the online travel vendor's impressive execution and strong growth in an otherwise tough macro environment. With almost 80% of its bookings coming from international markets, Priceline's guidance shows none of the issues that we saw with peers Expedia and tripAdvisor. (You can read the full research report on Priceline here .)
Walgreens ' shares were down by over 2% following the U.S. FTC's update regarding the Walgreens store divestment, needed for the Rite Aid acquisition to be closed. The analyst still likes the stock since the proposed buyout of Rite Aid, should expand Walgreens Boots' business realm in the U.S. over the long term. Walgreens continues to hold a strong cash position, which is evident from its increased cash flow reserve in the last-reported third quarter. (You can read the full research report on Walgreens here .)
Other noteworthy reports we are featuring today include American Airlines ( AAL ) and Pepsi ( PEP ).
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. Would you like to peek behind the curtain and view them? 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 option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for all Zacks trades >>
You can find all of today's stock research reports here .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock 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.
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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! Register for your free subscription to Profit from the Pros .
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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
QUALCOMM INC (QCOM): Free Stock Analysis Report
PRICELINE.COM (PCLN): Free Stock Analysis Report
WALGREENS BAI (WBA): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
PEPSICO INC (PEP): 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 Qualcomm ( QCOM ), Priceline ( PCLN ), Walgreens ( WBA ), American Airlines ( AAL ) and Pepsi ( PEP ). Other noteworthy reports we are featuring today include American Airlines ( AAL ) and Pepsi ( PEP ). Click to get this free report QUALCOMM INC (QCOM): Free Stock Analysis Report PRICELINE.COM (PCLN): Free Stock Analysis Report WALGREENS BAI (WBA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report PEPSICO INC (PEP): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Qualcomm ( QCOM ), Priceline ( PCLN ), Walgreens ( WBA ), American Airlines ( AAL ) and Pepsi ( PEP ). Click to get this free report QUALCOMM INC (QCOM): Free Stock Analysis Report PRICELINE.COM (PCLN): Free Stock Analysis Report WALGREENS BAI (WBA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report PEPSICO INC (PEP): Free Stock Analysis Report To read this article on Zacks.com click here. Other noteworthy reports we are featuring today include American Airlines ( AAL ) and Pepsi ( PEP ).
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Click to get this free report QUALCOMM INC (QCOM): Free Stock Analysis Report PRICELINE.COM (PCLN): Free Stock Analysis Report WALGREENS BAI (WBA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report PEPSICO INC (PEP): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Qualcomm ( QCOM ), Priceline ( PCLN ), Walgreens ( WBA ), American Airlines ( AAL ) and Pepsi ( PEP ). Other noteworthy reports we are featuring today include American Airlines ( AAL ) and Pepsi ( PEP ).
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Stocks recently featured in the blog include Qualcomm ( QCOM ), Priceline ( PCLN ), Walgreens ( WBA ), American Airlines ( AAL ) and Pepsi ( PEP ). Other noteworthy reports we are featuring today include American Airlines ( AAL ) and Pepsi ( PEP ). Click to get this free report QUALCOMM INC (QCOM): Free Stock Analysis Report PRICELINE.COM (PCLN): Free Stock Analysis Report WALGREENS BAI (WBA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report PEPSICO INC (PEP): Free Stock Analysis Report To read this article on Zacks.com click here.
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e0877221-924d-4d1e-aae6-40db1847d428
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7830.0
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2016-09-12 00:00:00 UTC
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Nasdaq 100 Movers: AAL, NTES
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-ntes-2016-09-12
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nan
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nan
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In early trading on Monday, shares of NetEase ( NTES ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.1%. Year to date, NetEase registers a 22.5% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 2.4%. American Airlines Group is lower by about 11.3% looking at the year to date performance.
Two other components making moves today are Western Digital ( WDC ), trading down 1.8%, and Illumina ( ILMN ), trading up 2.0% on the day.
VIDEO: Nasdaq 100 Movers: AAL, NTES
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 2.4%. VIDEO: Nasdaq 100 Movers: AAL, NTES 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 11.3% 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 2.4%. VIDEO: Nasdaq 100 Movers: AAL, NTES 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 2.4%. VIDEO: Nasdaq 100 Movers: AAL, NTES 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 NetEase ( NTES ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.1%.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 2.4%. VIDEO: Nasdaq 100 Movers: AAL, NTES 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 11.3% looking at the year to date performance.
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71cbcfd0-adce-4c9d-9f98-340896ceac63
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7831.0
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2016-09-12 00:00:00 UTC
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S&P 500 Movers: AAL, PRGO
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AAL
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https://www.nasdaq.com/articles/sp-500-movers-aal-prgo-2016-09-12
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nan
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nan
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In early trading on Monday, shares of Perrigo Company ( PRGO ) topped the list of the day's best performing components of the S&P 500 index, trading up 3.6%. Year to date, Perrigo Company has lost about 36.5% of its value.
And the worst performing S&P 500 component thus far on the day is American Airlines Group ( AAL ), trading down 2.7%. American Airlines Group is lower by about 11.5% looking at the year to date performance.
Two other components making moves today are Transocean ( RIG ), trading down 2.7%, and Amgen ( AMGN ), trading up 2.0% on the day.
VIDEO: S&P 500 Movers: AAL, PRGO
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 S&P 500 component thus far on the day is American Airlines Group ( AAL ), trading down 2.7%. VIDEO: S&P 500 Movers: AAL, PRGO 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 Perrigo Company ( PRGO ) topped the list of the day's best performing components of the S&P 500 index, trading up 3.6%.
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And the worst performing S&P 500 component thus far on the day is American Airlines Group ( AAL ), trading down 2.7%. VIDEO: S&P 500 Movers: AAL, PRGO 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 S&P 500 component thus far on the day is American Airlines Group ( AAL ), trading down 2.7%. VIDEO: S&P 500 Movers: AAL, PRGO 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 Perrigo Company ( PRGO ) topped the list of the day's best performing components of the S&P 500 index, trading up 3.6%.
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And the worst performing S&P 500 component thus far on the day is American Airlines Group ( AAL ), trading down 2.7%. VIDEO: S&P 500 Movers: AAL, PRGO 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 Perrigo Company ( PRGO ) topped the list of the day's best performing components of the S&P 500 index, trading up 3.6%.
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2c4aad0c-cfa8-4787-af8c-d8f31725eef9
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7832.0
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2016-09-12 00:00:00 UTC
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Consumer Sector Update for 09/12/2016: MANU, AAL
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AAL
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https://www.nasdaq.com/articles/consumer-sector-update-09122016-manu-aal-2016-09-12
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nan
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nan
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Top Consumer Shares:
WMT: +0.8%
MCD: -0.6%
DIS: -0.5%
CVS: -0.1%
KO: -0.2%
GE: -0.2%
Consumer shares were mainly lower ahead of the opening bell on Monday.
In consumer stocks news, American Airlines ( AAL ) said late Friday it has reached a tentative agreement with the Transport Workers Union, which represents its flight simulator engineers, on a new joint collective bargaining deal.
Shares in the company were 2.7% lower at $37.47 pre-bell. The stock has traded between $24.85 and $47.09 over the past 52 weeks.
And Manchester United ( MANU ) reported fiscal Q4 results that missed the Street view on adjusted earnings per share but exceeded revenue expectations.
Shares in the company were unchanged at $17.26 pre-bell. The stock has traded between $13.30 and $19.74 over the past 52 weeks.
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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In consumer stocks news, American Airlines ( AAL ) said late Friday it has reached a tentative agreement with the Transport Workers Union, which represents its flight simulator engineers, on a new joint collective bargaining deal. Consumer shares were mainly lower ahead of the opening bell on Monday. And Manchester United ( MANU ) reported fiscal Q4 results that missed the Street view on adjusted earnings per share but exceeded revenue expectations.
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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. In consumer stocks news, American Airlines ( AAL ) said late Friday it has reached a tentative agreement with the Transport Workers Union, which represents its flight simulator engineers, on a new joint collective bargaining deal. Top Consumer Shares:
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In consumer stocks news, American Airlines ( AAL ) said late Friday it has reached a tentative agreement with the Transport Workers Union, which represents its flight simulator engineers, on a new joint collective bargaining deal. 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 consumer stocks news, American Airlines ( AAL ) said late Friday it has reached a tentative agreement with the Transport Workers Union, which represents its flight simulator engineers, on a new joint collective bargaining deal. Consumer shares were mainly lower ahead of the opening bell on Monday. Shares in the company were 2.7% lower at $37.47 pre-bell.
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fb9a67f5-7fe4-4f75-ae7f-3dcebfcb3840
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7833.0
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2016-09-09 00:00:00 UTC
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FAA Issues Samsung Galaxy Note 7 Warning to Air Travelers
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AAL
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https://www.nasdaq.com/articles/faa-issues-samsung-galaxy-note-7-warning-air-travelers-2016-09-09
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nan
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nan
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InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Federal Aviation Administration (FAA) has warned travelers about the use of Samsung Galaxy Note 7 phones.
Source: Samsung
You may own such a device and even use it in airports, but once you get in the airplane, the use of the gadget is strictly prohibited. You may not use or charge your Samsung Galaxy Note 7 due to the mobile phone's battery, which could overheat and cause a fire.
The South Korean company recalled a number of the devices recently due to a flaw discovered in a line of Note 7 due to battery fire problems. There are many airlines that have complied with this regulation, including Singapore Airlines Ltd. (OTCMKTS: SINGF ), which made the decision on Friday.
The previous day, Australian company Qantas Airways Ltd (OTCMKTS: QUBSF ), Virgin Australia Holdings Ltd (OTCMKTS: VBHLF ) and Jetstar Airways banned Samsung Galaxy Note 7 devices from its flights.
Naturally, you will not be able to plug your phones into in-flight entertainment systems. Other airlines are still considering the FAA's move, such as Delta Air Lines Inc (NYSE: DAL ).
United Continental Holdings Inc (NYSE: UAL ) and American Airlines Group Inc (NASDAQ: AAL ) have yet to comment on the matter as they are reviewing their own policies regarding such regulations.
However, the FAA's lack of clarity in other circumstances suggest that you can carry other items, such as phone chargers for other devices.
DAL slumped 3.7% and UAL stock fell 3.3% to end the week. AAL shares slipped 2.1% Friday.
More From InvestorPlace:
7 Energy Stocks You Can Actually Trust in Retirement
5 Stocks to Buy for September
5 Stocks to Sell for September
The post FAA Issues Samsung Galaxy Note 7 Warning to Air Travelers 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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United Continental Holdings Inc (NYSE: UAL ) and American Airlines Group Inc (NASDAQ: AAL ) have yet to comment on the matter as they are reviewing their own policies regarding such regulations. AAL shares slipped 2.1% Friday. You may not use or charge your Samsung Galaxy Note 7 due to the mobile phone's battery, which could overheat and cause a fire.
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United Continental Holdings Inc (NYSE: UAL ) and American Airlines Group Inc (NASDAQ: AAL ) have yet to comment on the matter as they are reviewing their own policies regarding such regulations. AAL shares slipped 2.1% Friday. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips The Federal Aviation Administration (FAA) has warned travelers about the use of Samsung Galaxy Note 7 phones.
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United Continental Holdings Inc (NYSE: UAL ) and American Airlines Group Inc (NASDAQ: AAL ) have yet to comment on the matter as they are reviewing their own policies regarding such regulations. AAL shares slipped 2.1% Friday. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips The Federal Aviation Administration (FAA) has warned travelers about the use of Samsung Galaxy Note 7 phones.
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United Continental Holdings Inc (NYSE: UAL ) and American Airlines Group Inc (NASDAQ: AAL ) have yet to comment on the matter as they are reviewing their own policies regarding such regulations. AAL shares slipped 2.1% Friday. You may not use or charge your Samsung Galaxy Note 7 due to the mobile phone's battery, which could overheat and cause a fire.
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88a12bfa-29f0-449a-9be3-386ba3fd5699
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7834.0
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2016-09-09 00:00:00 UTC
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Can Passenger Airlines Revive The Growth In The Air Cargo Industry?
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AAL
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https://www.nasdaq.com/articles/can-passenger-airlines-revive-growth-air-cargo-industry-2016-09-09
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nan
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nan
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In continuation with our previous article on the role played by passenger airlines in the air cargo industry , in this note we talk about what issues plague these airlines and their expected performance in the cargo space in the future.
Constraints on Air Cargo
By reducing economic activity and decreasing purchasing power, recessions result in the erosion of international trade and of demand for goods. This, in turn, leads to a decline in demand for air cargo.
Trade barriers set up by governments and lobbyists, through the establishment of export tariffs and import duties, to promote nationalist agendas, hamper trade between nations. This discourages international trade and thus, demand for air cargo.
To deal with the increased carbon footprint and other environmental concerns such as loud noise, and emissions causing pollution, a number of regulations are put in place on aircraft manufacturers and airlines. Meeting these regulations calls for additional resources and results in increased expenses for cargo operators. This, in turn, may affect air cargo adversely, by increasing costs.
Volatility in oil prices results in cost fluctuations. While at the time of high oil prices, airlines may have to increase the price for cargo transportation, at times of low oil prices they suffer due to increased competition, pressurizing their yields.
It is the most expensive mode of cargo transportation, when compared to the other transport options available. This may discourage less urgent and low value cargo to use air as the transportation mode.
The absence of high quality transport infrastructure may hinder sustained growth in air cargo.
Recent Trends
Post 9/11 and the subprime mortgage crisis, demand for air cargo suffered a hit. The weak world economy has had an adverse impact on the mature air cargo routes connecting America-Europe, resulting in a slowdown in air cargo traffic.
As global economic growth and trade rebounded, thanks to strong emerging market growth, the revenue earned by the air cargo industry expanded. However, due to factors such as the weakness in demand, expansion in cargo capacity, appreciation of the dollar, lower surcharges, and competition from now-faster water transport, air cargo revenue became sluggish again in 2013-2014.
That said, the long-term outlook for air freight remains strong, on the back of growth forecast in online retail store sales and consumers willing to pay a premium for quick delivery of these products. Further, the new free trade agreements and unexplored opportunities in the Asia-Pacific region hold immense potential to bolster this industry, with passenger airlines leading the way.
Passenger Airlines' Role In Air Cargo Industry
The following table talks about Trefis' forecasts of cargo revenue for a number of airlines.
In order to see the growth in cargo returning to historic highs, it is important to ensure that the relationships within the industry are strengthened such that airlines are able to respond to the changing consumer patterns.
Collaboration with supply chain partners is a must in order to efficiently deliver to customers by incorporating "click-buy-fly," "home-to-home," and "factory-to-home" models.
To keep worries at bay, more awareness needs to be created regarding the carbon footprint of air cargo which is limited to only 2% of total carbon dioxide emission.
A level of safety and security is a must by fully embracing technology and reducing human intervention.
Creating awareness regarding air cargo's role in developing emerging nations and connecting them to the rest of the world by providing trade opportunities, which earlier were not available.
Have more questions about JetBlue Corporation ( JBLU )? See the links below:
Why Has Trefis Revised Its Price Estimate For JetBlue To $18 Per Share?
Capacity Growth Fuels JetBlue's Q2'16 Revenues, Slightly Offset By Declining PRASM
JetBlue's Q2'16 Earnings Preview: Capacity Expansion And Mint Services To Drive Results
What Impact Will Crude Oil Prices Have On JetBlue's Enterprise Value?
How Are US Air Fares Correlated To Crude Oil Prices?
Rapid Capacity Growth And Lower Fuel Costs Drive JetBlue's 1Q'16 Results
How Has JetBlue Utilized Its Cash Flows Over The Last Three Years?
How Has JetBlue's Revenue And EBITDA Grown Over The Last Five Years?
What Will Drive JetBlue's Revenue And EBITDA In The Next Five Years?
How Would JetBlue's Equity Value Be Impacted If Crude Oil Prices Reach $100 Per Barrel By 2018?
How Much Value Will JetBlue's International Operations Contribute To Its Revenue By 2020?
How Will JetBlue's Equity Value Be Impacted If Crude Oil Prices Average At $50 Per Barrel In 2018?
Capacity Expansions And Fuel Cost Savings Drive JetBlue's Earnings in 2015
How Did The Oil Slump Impact JetBlue's Operating Margins In 2015?
What Is JetBlue's Fundamental Value Based On 2016 Expected Numbers?
How Has JetBlue's Revenue And EBITDA Composition Changed Over The Last Five Years?
What Is JetBlue's Revenue And EBITDA Breakdown?
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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Constraints on Air Cargo By reducing economic activity and decreasing purchasing power, recessions result in the erosion of international trade and of demand for goods. To deal with the increased carbon footprint and other environmental concerns such as loud noise, and emissions causing pollution, a number of regulations are put in place on aircraft manufacturers and airlines. That said, the long-term outlook for air freight remains strong, on the back of growth forecast in online retail store sales and consumers willing to pay a premium for quick delivery of these products.
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While at the time of high oil prices, airlines may have to increase the price for cargo transportation, at times of low oil prices they suffer due to increased competition, pressurizing their yields. Passenger Airlines' Role In Air Cargo Industry The following table talks about Trefis' forecasts of cargo revenue for a number of airlines. 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 at the time of high oil prices, airlines may have to increase the price for cargo transportation, at times of low oil prices they suffer due to increased competition, pressurizing their yields. Passenger Airlines' Role In Air Cargo Industry The following table talks about Trefis' forecasts of cargo revenue for a number of airlines. Capacity Growth Fuels JetBlue's Q2'16 Revenues, Slightly Offset By Declining PRASM JetBlue's Q2'16 Earnings Preview: Capacity Expansion And Mint Services To Drive Results What Impact Will Crude Oil Prices Have On JetBlue's Enterprise Value?
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This discourages international trade and thus, demand for air cargo. While at the time of high oil prices, airlines may have to increase the price for cargo transportation, at times of low oil prices they suffer due to increased competition, pressurizing their yields. As global economic growth and trade rebounded, thanks to strong emerging market growth, the revenue earned by the air cargo industry expanded.
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aede43c1-cb6a-4e15-bd37-4336ace7f0b8
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7835.0
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2016-09-07 00:00:00 UTC
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Wednesday Sector Leaders: Shipping, Airlines
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AAL
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https://www.nasdaq.com/articles/wednesday-sector-leaders-shipping-airlines-2016-09-07
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nan
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nan
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In trading on Wednesday, shipping shares were relative leaders, up on the day by about 3.2%. Leading the group were shares of Eagle Bulk Shipping, up about 16.9% and shares of Diana Shipping up about 8.3% on the day.
Also showing relative strength are airlines shares, up on the day by about 1.9% as a group, led by Allegiant Travel, trading up by about 7.3% and American Airlines Group, trading up by about 6.3% on Wednesday.
VIDEO: Wednesday Sector Leaders: Shipping, Airlines
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, shipping shares were relative leaders, up on the day by about 3.2%. Also showing relative strength are airlines shares, up on the day by about 1.9% as a group, led by Allegiant Travel, trading up by about 7.3% and American Airlines Group, trading up by about 6.3% on Wednesday. VIDEO: Wednesday Sector Leaders: Shipping, Airlines 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, shipping shares were relative leaders, up on the day by about 3.2%. VIDEO: Wednesday Sector Leaders: Shipping, Airlines 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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Leading the group were shares of Eagle Bulk Shipping, up about 16.9% and shares of Diana Shipping up about 8.3% on the day. Also showing relative strength are airlines shares, up on the day by about 1.9% as a group, led by Allegiant Travel, trading up by about 7.3% and American Airlines Group, trading up by about 6.3% on Wednesday. VIDEO: Wednesday Sector Leaders: Shipping, Airlines 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, shipping shares were relative leaders, up on the day by about 3.2%. Leading the group were shares of Eagle Bulk Shipping, up about 16.9% and shares of Diana Shipping up about 8.3% on the day. VIDEO: Wednesday Sector Leaders: Shipping, Airlines 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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5ffc3af2-dd2a-4be2-8d49-3bee5d6407d5
|
7836.0
|
2016-09-07 00:00:00 UTC
|
Bullish Two Hundred Day Moving Average Cross - AAL
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AAL
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https://www.nasdaq.com/articles/bullish-two-hundred-day-moving-average-cross-aal-2016-09-07
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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 above their 200 day moving average of $37.38, changing hands as high as $39.52 per share. American Airlines Group Inc shares are currently trading up about 6.3% 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 $47.09 as the 52 week high point - that compares with a last trade of $39.38.
According to the ETF Finder at ETF Channel, AAL makes up 6.44% of the PowerShares Dynamic Leisure and Entertainment Portfolio ETF (Symbol: PEJ) which is trading higher by about 1.4% on the day Wednesday.
Click here to find out which 9 other stocks recently crossed above 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 above their 200 day moving average of $37.38, changing hands as high as $39.52 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 $47.09 as the 52 week high point - that compares with a last trade of $39.38. According to the ETF Finder at ETF Channel, AAL makes up 6.44% of the PowerShares Dynamic Leisure and Entertainment Portfolio ETF (Symbol: PEJ) which is trading higher by about 1.4% on the day Wednesday.
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $37.38, changing hands as high as $39.52 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 $47.09 as the 52 week high point - that compares with a last trade of $39.38. According to the ETF Finder at ETF Channel, AAL makes up 6.44% of the PowerShares Dynamic Leisure and Entertainment Portfolio ETF (Symbol: PEJ) which is trading higher by about 1.4% on the day Wednesday.
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $37.38, changing hands as high as $39.52 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 $47.09 as the 52 week high point - that compares with a last trade of $39.38. According to the ETF Finder at ETF Channel, AAL makes up 6.44% of the PowerShares Dynamic Leisure and Entertainment Portfolio ETF (Symbol: PEJ) which is trading higher by about 1.4% on the day Wednesday.
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $37.38, changing hands as high as $39.52 per share. According to the ETF Finder at ETF Channel, AAL makes up 6.44% of the PowerShares Dynamic Leisure and Entertainment Portfolio ETF (Symbol: PEJ) which is trading higher by about 1.4% on the day Wednesday. 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 $47.09 as the 52 week high point - that compares with a last trade of $39.38.
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7c35379e-f795-4bfa-af02-c422c7ec4487
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7837.0
|
2016-09-07 00:00:00 UTC
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Nasdaq 100 Movers: WFM, WDC
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-wfm-wdc-2016-09-07
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nan
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nan
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In early trading on Wednesday, shares of Western Digital topped the list of the day's best performing components of the Nasdaq 100 index, trading up 11.0%. Year to date, Western Digital has lost about 12.1% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Whole Foods Market, trading down 5.6%. Whole Foods Market is lower by about 13.5% looking at the year to date performance.
Two other components making moves today are Fastenal, trading down 2.8%, and American Airlines Group, trading up 5.2% on the day.
VIDEO: Nasdaq 100 Movers: WFM, WDC
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 Whole Foods Market, trading down 5.6%. Whole Foods Market is lower by about 13.5% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: WFM, WDC 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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Year to date, Western Digital has lost about 12.1% of its value. VIDEO: Nasdaq 100 Movers: WFM, WDC 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 early trading on Wednesday, shares of Western Digital topped the list of the day's best performing components of the Nasdaq 100 index, trading up 11.0%. And the worst performing Nasdaq 100 component thus far on the day is Whole Foods Market, trading down 5.6%. VIDEO: Nasdaq 100 Movers: WFM, WDC 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 early trading on Wednesday, shares of Western Digital topped the list of the day's best performing components of the Nasdaq 100 index, trading up 11.0%. And the worst performing Nasdaq 100 component thus far on the day is Whole Foods Market, trading down 5.6%. VIDEO: Nasdaq 100 Movers: WFM, WDC 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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e2d38fe5-13fa-412d-ba97-267b9a221351
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7838.0
|
2016-09-07 00:00:00 UTC
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American Airlines (AAL) Finalizes Deal with Republic Airways
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-finalizes-deal-with-republic-airways-2016-09-07
|
nan
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nan
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As per media reports, American Airlines Group Inc.AAL has finalized a long-term deal with Republic Airways Holdings Inc. RJETQ . The deal pertains to provision of regional flights by the latter. Notably, American Airlines is the largest customer of Republic Airways. The agreement will be effective only if approved by the U.S. Bankruptcy Court for the Southern District of New York in a hearing scheduled for Sep 21, 2016.
Based in Indianapolis, Republic Airways has been facing operational issues in recent times. Owing to the difficulties encountered, the airlines company filed for Chapter 11 bankruptcy protection in February this year. In 2015, the company had signed a new contract with workers but had to opt for bankruptcy after it was unable to secure deals with leading carriers U.S. carriers to fund higher pay for its pilots.
Terms of the Deal
According to the terms of the latest agreement, Republic Airways will continue to provide regional flights to American Airlines. As part of the settlement, Republic Airways will pay $250 million to American Airlines as unsecured bankruptcy claim. Per reports, American Airlines will be paying for the reconfiguration of some of Embraer E175 aircraft operated by Republic Airways. The reconfiguration will result in 76 seats instead of 80 for the changed aircraft, thereby taking them to the same standard as the other aircraft in Republic Airways' fleet. This change will also result in the aircrafts being compliant with pilot contracts of other large partners of Republic Airways, such as United Continental Holdings Inc. UAL and Delta Air Lines Inc. DAL . Republic Airwayshas reached an agreement with these airlines too.
American Airlines, which currently carries a Zacks Rank #3 (Hold), has a broad domestic flight services network in addition to its international operations. The company has an impressive record of continuous route additions to cater to customer needs.
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DELTA AIR LINES (DAL): Free Stock Analysis Report
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AMER AIRLINES (AAL): Free Stock Analysis Report
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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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As per media reports, American Airlines Group Inc.AAL has finalized a long-term deal with Republic Airways Holdings Inc. RJETQ . Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. This change will also result in the aircrafts being compliant with pilot contracts of other large partners of Republic Airways, such as United Continental Holdings Inc. UAL and Delta Air Lines Inc. DAL .
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Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. As per media reports, American Airlines Group Inc.AAL has finalized a long-term deal with Republic Airways Holdings Inc. RJETQ . Terms of the Deal According to the terms of the latest agreement, Republic Airways will continue to provide regional flights to American Airlines.
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Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. As per media reports, American Airlines Group Inc.AAL has finalized a long-term deal with Republic Airways Holdings Inc. RJETQ . Terms of the Deal According to the terms of the latest agreement, Republic Airways will continue to provide regional flights to American Airlines.
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As per media reports, American Airlines Group Inc.AAL has finalized a long-term deal with Republic Airways Holdings Inc. RJETQ . Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, American Airlines is the largest customer of Republic Airways.
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486f5fb9-6d44-47a6-a8fe-2e76eaafe374
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7839.0
|
2016-09-07 00:00:00 UTC
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How Did Delta Perform Operationally In August?
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AAL
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https://www.nasdaq.com/articles/how-did-delta-perform-operationally-august-2016-09-07
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nan
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nan
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In the month of August 2016, the legacy carrier, Delta, saw its capacity increase slightly, in line with the guidance. However, its passenger traffic decreased by 2.8%, and passengers boarded declined by 3.1%. To make matters worse, the carrier's unit revenues dropped by as much as 9.5%. Delta attributes most of this decline to the outage in August that led to approximately 2,300 cancellations. The other reasons sighted by the airline included the ongoing supply-demand imbalance in the transatlantic region, and headwinds from its yen hedge positions. The fall in PRASM led to Delta suffering a loss of approximately $100 million in the month of August. The company has revised its third quarter unit revenue outlook downward to 4%-6%, on the back of this incident, but remains confident about turning the metric around by the end of the year as planned.
Have more questions about Delta Air Lines ( DAL )? See the links below:
How Will Delta Air Lines Utilize Its Cash Flows?
Delta Airlines Re-Fleeting Program: How Will It Help?
Why Has Trefis Lowered Delta's Price Estimate From $51 To $44 Per Share?
Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues
Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2'16
Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16
What Should We Expect From Delta's 1Q'16 Results?
How Did The Legacy Carriers Perform Operationally In January?
Why Did Delta's Operating Margin Soar In 2015?
Delta Air Lines: The Year 2015 In Review
How Will Delta's Revenue And EBITDA Grow Between 2015 and 2018?
How Has Delta's Revenue And EBITDA Changed Over The Last Five Years
What Is Delta's Revenue And EBITDA Brekdown?
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 other reasons sighted by the airline included the ongoing supply-demand imbalance in the transatlantic region, and headwinds from its yen hedge positions. The fall in PRASM led to Delta suffering a loss of approximately $100 million in the month of August. The company has revised its third quarter unit revenue outlook downward to 4%-6%, on the back of this incident, but remains confident about turning the metric around by the end of the year as planned.
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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. Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2'16 Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16 What Should We Expect From Delta's 1Q'16 Results?
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Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2'16 Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16 What Should We Expect From Delta's 1Q'16 Results? Delta Air Lines: The Year 2015 In Review How Will Delta's Revenue And EBITDA Grow Between 2015 and 2018? How Has Delta's Revenue And EBITDA Changed Over The Last Five Years What Is Delta's Revenue And EBITDA Brekdown?
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Delta attributes most of this decline to the outage in August that led to approximately 2,300 cancellations. How Did The Legacy Carriers Perform Operationally In January? How Has Delta's Revenue And EBITDA Changed Over The Last Five Years What Is Delta's Revenue And EBITDA Brekdown?
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8dfa1e5d-c3a2-47f4-b873-f2039fee3ab3
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7840.0
|
2016-09-02 00:00:00 UTC
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ViaSat, Eutelsat to Provide In-Flight Internet to Finnair
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AAL
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https://www.nasdaq.com/articles/viasat-eutelsat-to-provide-in-flight-internet-to-finnair-2016-09-02
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nan
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nan
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Global broadband services and technology company, ViaSat Inc.VSAT , with its long-time partner Eutelsat, is spreading its wings across the Atlantic, as it signed an agreement to provide in-flight Wi-Fi services with Finnair.
This follows a similar contract with EL AL Israel Airlines, which is currently in customer trials phase, and is scheduled to enter full retail service by the end of this year.
The Finnair Contract
The Finnair contract entails the installation of a high-speed wireless Internet network on the airline's entire Airbus A320 series short-haul fleet flying in Europe. The installation will begin in May 2017, and is slated to finish by Jun 2018.
As the prime contractor to the airlines, ViaSat will supply its vertically integrated in-flight Internet system, which will include an end-to-end service that will leverage connectivity from Eutelsat. The connectivity service will leverage KA-SAT, Eutelsat's high-capacity Ka-band broadband satellite.
With passengers increasingly valuing high-speed Internet during their flights these days, the ViaSat in-flight Wi-Fi system will allow Finnair to unlock greater value for its clients by enabling them to use their own device to engage with the Internet. ViaSat delivers download speed of 12 megabits per second, faster than most existing services. It also allows passengers to stream Internet video.
ViaSat's Booming Wi-Fi Business
ViaSat has, till date, installed its system on about 500 commercial airplanes. This figure includes most of the United Continental Holdings, Inc.'s UAL Boeing 737 fleet as well as the JetBlue Airways' aircraft.
VIASAT INC Price and Consensus
VIASAT INC Price and Consensus | VIASAT INC Quote
ViaSat has been expanding its Wi-Fi business further. In June, the company secured a contract to provide internet access on 100 new American Airlines Group AAL planes. ViaSat is also reportedly supplying Wi-Fi to Air Force One and other government aircraft.
Further, ViaSat recently inked a multi-year agreement with leading aerospace company, Dassault Aviation. Per the deal, ViaSat will equip the first Falcon 8X with its Ku-band terminal to deliver advanced Internet and corporate network access to operators. In addition, in February, ViaSat secured a deal to deliver Wi-Fi services to the domestic fleet of Qantas Airways.
Growth Prospects
We believe that the company's significant contract wins will boost its leading position in end-markets, allowing it to gain a competitive edge over its peers.
ViaSat expects robust growth as it capitalizes on its competitive advantage and sturdy demand for its highly cost-effective satellite bandwidth products. The company projects strong growth opportunities in satellite services and government systems segments, which should drive top-line growth in the coming quarters.
ViaSat currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same space is Clearfield, Inc. CLFD , holding a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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VIASAT INC (VSAT): Free Stock Analysis Report
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AMER AIRLINES (AAL): Free Stock Analysis Report
CLEARFIELD INC (CLFD): 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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In June, the company secured a contract to provide internet access on 100 new American Airlines Group AAL planes. Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report CLEARFIELD INC (CLFD): Free Stock Analysis Report To read this article on Zacks.com click here. This follows a similar contract with EL AL Israel Airlines, which is currently in customer trials phase, and is scheduled to enter full retail service by the end of this year.
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Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report CLEARFIELD INC (CLFD): Free Stock Analysis Report To read this article on Zacks.com click here. In June, the company secured a contract to provide internet access on 100 new American Airlines Group AAL planes. As the prime contractor to the airlines, ViaSat will supply its vertically integrated in-flight Internet system, which will include an end-to-end service that will leverage connectivity from Eutelsat.
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Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report CLEARFIELD INC (CLFD): Free Stock Analysis Report To read this article on Zacks.com click here. In June, the company secured a contract to provide internet access on 100 new American Airlines Group AAL planes. Global broadband services and technology company, ViaSat Inc.VSAT , with its long-time partner Eutelsat, is spreading its wings across the Atlantic, as it signed an agreement to provide in-flight Wi-Fi services with Finnair.
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In June, the company secured a contract to provide internet access on 100 new American Airlines Group AAL planes. Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report CLEARFIELD INC (CLFD): Free Stock Analysis Report To read this article on Zacks.com click here. Global broadband services and technology company, ViaSat Inc.VSAT , with its long-time partner Eutelsat, is spreading its wings across the Atlantic, as it signed an agreement to provide in-flight Wi-Fi services with Finnair.
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dcc3e80d-1deb-416c-8434-8c2bde1bd6ab
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7841.0
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2016-09-01 00:00:00 UTC
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The Zacks Analyst Blog Highlights: United Continental, American Airlines, Southwest Airlines, Delta Air Lines and JetBlue Airways
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-united-continental-american-airlines-southwest-airlines
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nan
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nan
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For Immediate Release
Chicago, IL - September 01, 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 United Continental Holdings ( UAL ), American Airlines Group ( AAL ), Southwest Airlines ( LUV ), Delta Air Lines ( DAL ) and JetBlue Airways ( JBLU ) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Wednesday's Analyst Blog:
The most eye-catching update of the otherwise news-thin week came from United Continental Holdings ( UAL ) when it announced the appointment of Scott Kirby as President- a newly created position at the carrier. The news of the vastly experienced Kirby moving to United Continental from American Airlines Group ( AAL ) led to a surge in the former's stock price.
Apart from the management change, the Dallas, TX-based Southwest Airlines ( LUV ) received good news on the labor front when it inked a tentative pay-related deal with its pilots' union. Moreover, news pertaining to the engine failure of a Southwest Airlines flight from New Orleans to Orlando, FL also invited attention. Additionally, the past week saw an update regarding the Atlanta, GA-based Delta Air Lines' ( DAL ) modernization plans at the Los Angeles International Airport (LAX).
(Read the last Airline Stock Roundup for Aug 24, 2016 ).
Recap of the Past Week's Most Important Stories
1. United Continental announced that Scott Kirby has joined the carrier as President. Kirby has vast experience in the airlines space and his appointment is a prudent move by United Continental as it seeks to turn around its fortunes. At United Continental, Kirby assumes a wide array of responsibilities ranging from overseeing its activities pertaining to marketing, sales, alliances, and network planning along with revenue management (read more: United Continental Hires Scott Kirby as President, Stock Up ).
2. Delta's lease and license agreement to relocate to terminals 2 and 3 from terminals 5 and 6 at LAX received approval from Los Angeles City Council. The carrier plans to invest $1.9 billion for the upgradation purpose. The agreement aims at expanding Delta's gates at this key hub (read more: LA City Council OKs Delta's $1.9B LAX Modernization Plans ).
3. Southwest Airlines inked a tentative agreement with its pilots. The company and the union representing its pilots, Southwest Airlines Pilots' Association, have agreed "in principle" to the terms of this new contract (read more: Southwest Airlines Pilots Agree on Tentative Contract ).
On a separate note, a Southwest Airlines flight (3742) made an emergency landing at Pensacola International Airport after the pilot detected an issue with one of its two engines. According to media reports, there were 99 passengers on the plane and five crew members. Luckily no one was injured (read more: Southwest Airplane Suffers Engine Issue En-route to Florida ).
4. In a bid to expand further, low-cost carrier JetBlue Airways ( JBLU ) plans to initiate operations from Fort Lauderdale-Hollywood to Aruba - a popular Caribbean destination. The service is slated to start from Jan 4, 2017.
5. According to a report appearing in Reuters, the U.S. Department of Transportation on Friday has fined 4 major US carriers including American Airlines and United Continental for inaccurately informing passengers about compensation. According to the report, American Airlines was fined the maximum amount.
What's Next in the Airline Space?
JetBlue's flight from Fort Lauderdale to Santa Clara, Cuba will mark the resumption of commercial flights connecting the US and Cuba after more than 50 years. We anticipate further updates on the issue in the coming days. Moreover, August traffic reports from the likes of Delta Air Lines and Alaska Air Group (ALK) are expected over the next few days.
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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.
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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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UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
JETBLUE AIRWAYS (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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Stocks recently featured in the blog include United Continental Holdings ( UAL ), American Airlines Group ( AAL ), Southwest Airlines ( LUV ), Delta Air Lines ( DAL ) and JetBlue Airways ( JBLU ) . The news of the vastly experienced Kirby moving to United Continental from American Airlines Group ( AAL ) led to a surge in the former's stock price. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include United Continental Holdings ( UAL ), American Airlines Group ( AAL ), Southwest Airlines ( LUV ), Delta Air Lines ( DAL ) and JetBlue Airways ( JBLU ) . Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. The news of the vastly experienced Kirby moving to United Continental from American Airlines Group ( AAL ) led to a surge in the former's stock price.
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Stocks recently featured in the blog include United Continental Holdings ( UAL ), American Airlines Group ( AAL ), Southwest Airlines ( LUV ), Delta Air Lines ( DAL ) and JetBlue Airways ( JBLU ) . Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. The news of the vastly experienced Kirby moving to United Continental from American Airlines Group ( AAL ) led to a surge in the former's stock price.
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Stocks recently featured in the blog include United Continental Holdings ( UAL ), American Airlines Group ( AAL ), Southwest Airlines ( LUV ), Delta Air Lines ( DAL ) and JetBlue Airways ( JBLU ) . The news of the vastly experienced Kirby moving to United Continental from American Airlines Group ( AAL ) led to a surge in the former's stock price. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here.
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7ced7e8e-58d5-4ddf-bd35-87080a0ac5a1
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7842.0
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2016-09-01 00:00:00 UTC
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Better Buy: Delta Air Lines, Inc. vs. American Airlines Group Inc
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AAL
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https://www.nasdaq.com/articles/better-buy-delta-air-lines-inc-vs-american-airlines-group-inc-2016-09-01
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nan
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nan
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AAL data by YCharts .
Some investors may see in this chart a buying opportunity, which raises a related question: Which of the two mammoth airlines is the better buy?
It turns out that Delta and American share many similarities, from annual revenue levels to operating characteristics. So bear with me as I run through a series of tables in order to isolate meaningful differences, and thus gain a holistic perspective about which runway your investment dollars should land on.
The top line, the bottom line, and operating cash
Data source: SEC filings, YCharts. All dollar figures in billions. "TTM" = Trailing 12 Months.
The key takeaway in this first table is that, despite nearly identical revenue, Delta enjoys higher operating income than American. In the last 12 months, American showed greater net profit, but this was a function of a $3.0 billion net income tax benefit that the company realized when it reversed a deferred tax asset allowance in December of 2015.
Both companies wring handsome operating cash out of revenue, especially as they function in an extremely capital-intensive industry. Delta, however, has generated $1.5 billion more in operating cash during the last 12 months.
Current resources and long-term borrowings
This next table examines liquidity, the extent to which current assets exceed current liabilities, and solvency -- that is, the ability to meet long-term debt and other obligations. Ratios and balance-sheet items are as of June 30th, 2016:
Data source: SEC filings, YCharts. Balance sheet metrics for both companies as of 6/30/2016. All dollar figures in billions. "TTM" = Trailing 12 Months.
As expressed by the current ratio, American could boast of being slightly more liquid than Delta at the end of the second quarter. On the other hand, the long-term debt held by American is nearly triple that of Delta's, pushing its debt-to-equity ratio to nearly nine times Delta's metric. And when we calculate long-term debt to net property and equipment, we see that American has more than twice Delta's indebtedness against airplanes and other equipment.
Delta's higher solvency is also indicated by "times interest earned," a measure of how many times over a company's EBIT (earnings before interest and taxes) the company can cover the interest on its debt. In fact, Delta has assiduously reduced its debt over the last several years, securing an investment-grade rating from Moody's credit-rating agency in February of this year.
A final note in this section: Both companies carry rather sizable retirement obligations to past and present employees. When I read an airline's balance sheet, I like to add retirement liabilities to long-term debt to get a clearer picture of the major liabilities that a carrier is on the hook for. Using data from the table above, Delta's debt plus retirement obligations comes to more than $20 billion, while American's hovers around $30 billion.
Shareholder-friendly actions and valuation
Both Delta and American pay a modest dividend to shareholders. And both have purchased a significant amount of their own shares over the last 12 months. But American's $6.2 billion buyback splurge within a year bears some responsibility for the aggressive borrowing discussed above.
Data source: SEC filings, YCharts. All dollar figures in billions. "TTM" = Trailing 12 Months.
Neither airline is exactly on fire from a valuation standpoint. At less than seven times forward earnings, both carriers will likely be considered cheap by many a bargain hunter. Note that the market appears to be placing a premium on Delta's forward earnings growth potential versus American's, as seen in the PEG ratio.
Industry operating stats
Let's line these two titans up one final time and review standard airline industry operating statistics, as reported for Q2 2016:
Data source: SEC filings, YCharts, planespotters.net (for average fleet age). Metrics for both companies drawn from Q2 2016, ended 6/30/2016.
American's passenger-revenue-per-available-seat-mile (PRASM) deficit was offset partially by its greater revenue passenger miles during the quarter. While the two airlines have similar cost-per-available-seat-mile (CASM) profiles, American still seems to lag Delta in operating margin each quarter. This is due to a higher general and administrative expense on its profit and loss statement, which can be traced, in part, to its noticeably larger employee count.
Finally, Delta maintains a much older fleet than American Airlines, and most other legacy carriers, for that matter. Delta's long-held emphasis on using well-maintained, but older, planes is changing, however. During the second quarter of 2016, Delta placed orders for 37 Airbus A321ceo aircraft, and 75 C-series planes from Bombardier , at a total list price of nearly $10 billion. Of course, the prices Delta will finally record on delivery should be substantially discounted from list, as is industry practice.
Determining the better buy
Having run through the tables above, we can conclude that Delta holds three key advantages over American Airlines. First, it's more efficient operationally. Except for a period of three quarters from late 2014 through mid-2015, when Delta recorded significant mark-to-market adjustments on its fuel hedges, the company has produced consistently higher operating margins than American over the last five years.
Second, Delta is also more efficient with its capital. A determination to minimize debt and win its investment-grade rating means that the company's fleet expansion can be financed at a lower cost. More importantly, Delta is better positioned to weather a cyclical downturn in the airline sector due to its more modest leverage.
Last, and related to the first two factors, Delta produces highly impressive operating cash flow, better than even American's fine-tuned ability to wrench cash from operations. This allows it more flexibility in making capital decisions, and provides room for ample future share buybacks.
None of these factors alone illuminates Delta as being clearly superior to American Airlines. Both brands are vast and well-run enterprises. But as the business quarters add up, Delta's combined modest advantages over its worthy competitor should reward the patient investor with a higher multiple of earnings for Delta stock.
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Asit Sharma has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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AAL data by YCharts . So bear with me as I run through a series of tables in order to isolate meaningful differences, and thus gain a holistic perspective about which runway your investment dollars should land on. This is due to a higher general and administrative expense on its profit and loss statement, which can be traced, in part, to its noticeably larger employee count.
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AAL data by YCharts . The top line, the bottom line, and operating cash Data source: SEC filings, YCharts. In the last 12 months, American showed greater net profit, but this was a function of a $3.0 billion net income tax benefit that the company realized when it reversed a deferred tax asset allowance in December of 2015.
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AAL data by YCharts . On the other hand, the long-term debt held by American is nearly triple that of Delta's, pushing its debt-to-equity ratio to nearly nine times Delta's metric. Delta's higher solvency is also indicated by "times interest earned," a measure of how many times over a company's EBIT (earnings before interest and taxes) the company can cover the interest on its debt.
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AAL data by YCharts . Delta, however, has generated $1.5 billion more in operating cash during the last 12 months. Using data from the table above, Delta's debt plus retirement obligations comes to more than $20 billion, while American's hovers around $30 billion.
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12732cb5-3a6c-4fd2-823f-5036ffb51387
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7843.0
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2016-08-31 00:00:00 UTC
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Nasdaq 100 Movers: BIDU, KHC
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-bidu-khc-2016-08-31
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nan
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nan
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In early trading on Wednesday, shares of Kraft Heinz topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.5%. Year to date, Kraft Heinz registers a 22.7% gain.
And the worst performing Nasdaq 100 component thus far on the day is Baidu, trading down 1.9%. Baidu is lower by about 8.9% looking at the year to date performance.
Two other components making moves today are American Airlines Group, trading down 1.6%, and Liberty Global, trading up 1.4% on the day.
VIDEO: Nasdaq 100 Movers: BIDU, KHC
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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Year to date, Kraft Heinz registers a 22.7% gain. And the worst performing Nasdaq 100 component thus far on the day is Baidu, trading down 1.9%. VIDEO: Nasdaq 100 Movers: BIDU, KHC 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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Year to date, Kraft Heinz registers a 22.7% gain. VIDEO: Nasdaq 100 Movers: BIDU, KHC 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 early trading on Wednesday, shares of Kraft Heinz topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.5%. And the worst performing Nasdaq 100 component thus far on the day is Baidu, trading down 1.9%. VIDEO: Nasdaq 100 Movers: BIDU, KHC 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 early trading on Wednesday, shares of Kraft Heinz topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.5%. And the worst performing Nasdaq 100 component thus far on the day is Baidu, trading down 1.9%. VIDEO: Nasdaq 100 Movers: BIDU, KHC 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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f76924c7-c133-4399-ad5e-d948db82fdb6
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7844.0
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2016-08-31 00:00:00 UTC
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How Is United Continental Driving Cost Efficiency?
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AAL
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https://www.nasdaq.com/articles/how-united-continental-driving-cost-efficiency-2016-08-31
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nan
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nan
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Despite weakness in topline, United Continental ( UAL ) has managed to reign in its expenses, both fuel and non-fuel. Over the past year, the company has consistently shown improvement in its consolidated unit costs, majorly due to the positive impact of plummeting oil prices on fuel costs. The non-fuel costs incurred on salary, aircraft rent, and other general expenses have also remained subdued. However, going forward, the company expects its costs, excluding fuel to increase slightly owing to the recently ratified labor deals.
Non-fuel CASM
(year-on-year change)
Initiatives Undertaken By United To Manage Costs:
Structural efficiency by getting rid of 50 seaters.
Upgauging its existing fleet to add capacity efficiently and to help margin expansion and address pilot shortage. Expected net benefit from upgauging is $800 million by 2018.
Source: united.com
A strong U.S. dollar provides expense tailwind.
Efficient use of in-house maintenance abilities by migrating to a single maintenance system, to help in accretion of benefits to the tune of $500 million.
Optimization of supplier contracts.
Introduction of bundled and entry level fares to address the misalignment between customer's willingness to pay and the products offered.
Have more questions about United Continental ( UAL )? See the links below:
United Witnessed A Decline In Q2'16 Earnings, Despite Substantial Fuel Cost Savings
United Continental Q2'16 Earnings Preview: Higher Oil Prices & Declining PRASM To Weigh On Results
Here's Why We Have Revised United Continental's Price Estimate To $52 Per Share
Lower PRASM And Higher Tax Bill Caused United Continental's 1Q'16 Earnings To Drop Despite Huge Fuel Cost Savings
Currency Headwinds To Offset United Continental's Fuel Cost Savings For 1Q'16
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?
How Will United's Revenue And EBITDA Grow Over The Next Five Years?
How Important Is United's International Division For Its Overall Equity Value?
What Is United's Fundamental Value Based On 2016 Estimated Numbers?
Why We Think United Continental Is Worth $65 Per Share?
What Drove United's Revenue And EBITDA Growth Over The Last Five Years?
How Has United's Revenue And EBITDA Composition Changed Over The Last Five Years?
What Is United Continental's Revenue And EBITDA Breakdown?
How Has United Continental Utilized Its Cash Flows Over The Last Three Years?
How Have Plummeting Crude Oil Prices Impacted United Continental's Operating Margin?
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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However, going forward, the company expects its costs, excluding fuel to increase slightly owing to the recently ratified labor deals. Non-fuel CASM (year-on-year change) Initiatives Undertaken By United To Manage Costs: Structural efficiency by getting rid of 50 seaters. 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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See the links below: United Witnessed A Decline In Q2'16 Earnings, Despite Substantial Fuel Cost Savings United Continental Q2'16 Earnings Preview: Higher Oil Prices & Declining PRASM To Weigh On Results Here's Why We Have Revised United Continental's Price Estimate To $52 Per Share Lower PRASM And Higher Tax Bill Caused United Continental's 1Q'16 Earnings To Drop Despite Huge Fuel Cost Savings Currency Headwinds To Offset United Continental's Fuel Cost Savings For 1Q'16 How Will United's Equity Value Be Impacted If The Crude Oil Prices Rebound To $100 Per Barrel By 2018? How Have Plummeting Crude Oil Prices Impacted United Continental's Operating Margin? 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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Over the past year, the company has consistently shown improvement in its consolidated unit costs, majorly due to the positive impact of plummeting oil prices on fuel costs. See the links below: United Witnessed A Decline In Q2'16 Earnings, Despite Substantial Fuel Cost Savings United Continental Q2'16 Earnings Preview: Higher Oil Prices & Declining PRASM To Weigh On Results Here's Why We Have Revised United Continental's Price Estimate To $52 Per Share Lower PRASM And Higher Tax Bill Caused United Continental's 1Q'16 Earnings To Drop Despite Huge Fuel Cost Savings Currency Headwinds To Offset United Continental's Fuel Cost Savings For 1Q'16 How Will United's Equity Value Be Impacted If The Crude Oil Prices Rebound To $100 Per Barrel By 2018? How Have Plummeting Crude Oil Prices Impacted United Continental's Operating Margin?
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Despite weakness in topline, United Continental ( UAL ) has managed to reign in its expenses, both fuel and non-fuel. Expected net benefit from upgauging is $800 million by 2018. How Has United's Revenue And EBITDA Composition Changed Over The Last Five Years?
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5e0ce230-28af-413b-8a50-02d0028bdf03
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7845.0
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2016-08-30 00:00:00 UTC
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United Continental Hires Scott Kirby as President, Stock Up
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AAL
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https://www.nasdaq.com/articles/united-continental-hires-scott-kirby-as-president-stock-up-2016-08-30
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nan
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nan
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Chicago-based United Continental HoldingsUAL has been making quite a few changes to its management team of late as it strives to improve its operational performance under Oscar Munoz. Munoz himself has been serving as the Chief Executive Officer (CEO) of United Continental for less than a year.
United Continental in its latest bid to rearrange its management team has appointed Scott Kirby as the president, a newly created position at the carrier. Kirby has vast experience in the airline space and his appointment is a prudent move by United Continental as it seeks to turn around its fortunes. At United Continental, Kirby will assume a wide array of responsibilities ranging from overseeing its activities pertaining to marketing, sales, alliances, and network planning along with revenue management. Shares of United Continental gained value following the news of this key appointment.
UNITED CONT HLD Price
UNITED CONT HLD Price | UNITED CONT HLD Quote
Kirby's Vast Airline Experience
Kirby moved to United Continental from another powerhouse in the airlines space, Fort Worth, TX - based American Airlines Group AAL where he served as the president. Kirby has over 20 years of experience in the airline space, having joined the erstwhile America West Airlines in 1995. Kirby was a key member of the executive team that oversaw the merger of America West and US Airways in 2005. Kirby became US Airways' President in 2006. American Airlines Group in the current form was created in 2013 following the merger of US Airways and American Airlines. Kirby had served as American Airlines Group's president, occupying the second-most important position behind CEO Doug Parker, since 2013.
Kirby has been replaced as president by Robert Isom at American Airlines. Isom, prior to his elevation, served as American Airlines' Chief Operating Officer. Isom, who like Kirby is incredibly experienced in the airline space, will continue to oversee the carrier's operations apart from assuming all revenue responsibilities at American Airlines.
United's New Hires Aimed to Counter Criticism?
Kirby's appointment comes within a few days of key managerial changes at United Continental. Earlier in the month, the carrier appointed Andrew Levy as Executive Vice President and Chief Financial Officer. The highly experienced Levy has joined United Continental from Allegiant Travel Company ALGT . Additionally, United Continental appointed Julia Haywood as its executive vice president and chief commercial officer.
United Continental's endeavors to appoint people with significant experience in the airline space appear to be in response to the revolt it faced earlier in the year from some of its shareholders. Hedge funds PAR Capital Management, Inc. and Altimeter Capital Management, L.P, with over 7% collective stake in the company, were apparently dissatisfied with the company's performance as management apparently lacked enough understanding of the airline business. In fact, Munoz himself had served railroad operator CSX Corporation CSX before being chosen to replace Jeff Smisek as United Continental's CEO in Sep 2015.
Investor focus will remain on whether United Continental manages to revive its sagging fortunes through the above appointments.
United Continental like American Airlines currently has a Zacks Rank #3 (Hold).
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ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report
CSX CORP (CSX): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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UNITED CONT HLD Price UNITED CONT HLD Price | UNITED CONT HLD Quote Kirby's Vast Airline Experience Kirby moved to United Continental from another powerhouse in the airlines space, Fort Worth, TX - based American Airlines Group AAL where he served as the president. Click to get this free report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental in its latest bid to rearrange its management team has appointed Scott Kirby as the president, a newly created position at the carrier.
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UNITED CONT HLD Price UNITED CONT HLD Price | UNITED CONT HLD Quote Kirby's Vast Airline Experience Kirby moved to United Continental from another powerhouse in the airlines space, Fort Worth, TX - based American Airlines Group AAL where he served as the president. Click to get this free report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Isom, who like Kirby is incredibly experienced in the airline space, will continue to oversee the carrier's operations apart from assuming all revenue responsibilities at American Airlines.
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UNITED CONT HLD Price UNITED CONT HLD Price | UNITED CONT HLD Quote Kirby's Vast Airline Experience Kirby moved to United Continental from another powerhouse in the airlines space, Fort Worth, TX - based American Airlines Group AAL where he served as the president. Click to get this free report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Kirby has vast experience in the airline space and his appointment is a prudent move by United Continental as it seeks to turn around its fortunes.
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UNITED CONT HLD Price UNITED CONT HLD Price | UNITED CONT HLD Quote Kirby's Vast Airline Experience Kirby moved to United Continental from another powerhouse in the airlines space, Fort Worth, TX - based American Airlines Group AAL where he served as the president. Click to get this free report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Munoz himself has been serving as the Chief Executive Officer (CEO) of United Continental for less than a year.
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47c01d0e-a1a2-4e60-80a5-56850285b547
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7846.0
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2016-08-30 00:00:00 UTC
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Airline ETF Takes Flight After United Finds a New Co-Pilot
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AAL
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https://www.nasdaq.com/articles/airline-etf-takes-flight-after-united-finds-new-co-pilot-2016-08-30
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nan
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nan
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In an attempt to reinvigorate the business, United Continental Holdings ( UAL ) tapped former American Airlines Group ( AAL ) executive Scott Kirby to be its new president, lifting airline industry shares and sector-related exchange traded funds.
The U.S. Global Jets ETF (NYSEArca: JETS ) , the only dedicated airline industry-related ETF on the market, rose 2.4% Tuesday. JETS, though, was down 10.8% year-to-date.
Kirby, the former president of American Airlines, will be taking on the newly created president tag at United Continental, a move one analyst said gives United someone regarded as "one of the best revenue managers in the industry," Investor Business Daily reports.
SEE MORE: When to Buy the Airline ETF JETS
UAL shares jumped 7.9% and were testing their resistance at the 200-day simple moving average on Tuesday. Meanwhile, AAL shares gained 1.8%.
JETS include a 14.1% tilt toward AAL and 12.8% to UAL.
"United has lacked intellectual rigor," consultant Robert Mann told Fortune. "Scott going over there will absolutely shake up the place."
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United is currently strengthening its management team under Oscar Munoz, the chief executive, as the company is under pressure to address lagging financial and operational performances. United also recently appointed Andrew Levy as chief financial officer and Julia Haywood as chief commercial officer.
SEE MORE: Airlines ETF Flying High This Week
Kirby will report directly to Munoz and have have responsibility for operations, marketing, sales, revenue management, and network planning, the Wall Street Journal reports.
"Some may view this as negative for Spirit with a view that Kirby will bring the same aggression on pricing to a new seat at United, potentially creating more weakness in the pricing environment," Credit Suisse analyst Julie Yates said. "However, others may argue it could be a positive catalyst if American eases aggressive pricing behavior that many were led to believe was a function of Mr. Kirby's strategy."
For more information on the airline industry, visit our airlines category.
U.S. Global Jets ETF
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
This article was provided by our partner Tom Lydon of etftrends.com.
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 an attempt to reinvigorate the business, United Continental Holdings ( UAL ) tapped former American Airlines Group ( AAL ) executive Scott Kirby to be its new president, lifting airline industry shares and sector-related exchange traded funds. Meanwhile, AAL shares gained 1.8%. JETS include a 14.1% tilt toward AAL and 12.8% to UAL.
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In an attempt to reinvigorate the business, United Continental Holdings ( UAL ) tapped former American Airlines Group ( AAL ) executive Scott Kirby to be its new president, lifting airline industry shares and sector-related exchange traded funds. Meanwhile, AAL shares gained 1.8%. JETS include a 14.1% tilt toward AAL and 12.8% to UAL.
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In an attempt to reinvigorate the business, United Continental Holdings ( UAL ) tapped former American Airlines Group ( AAL ) executive Scott Kirby to be its new president, lifting airline industry shares and sector-related exchange traded funds. Meanwhile, AAL shares gained 1.8%. JETS include a 14.1% tilt toward AAL and 12.8% to UAL.
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In an attempt to reinvigorate the business, United Continental Holdings ( UAL ) tapped former American Airlines Group ( AAL ) executive Scott Kirby to be its new president, lifting airline industry shares and sector-related exchange traded funds. Meanwhile, AAL shares gained 1.8%. JETS include a 14.1% tilt toward AAL and 12.8% to UAL.
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588b48ae-e42d-47a9-8947-d61a266435bf
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7847.0
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2016-08-30 00:00:00 UTC
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How Will American Airlines Benefit From Its New Fleet Plan?
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AAL
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https://www.nasdaq.com/articles/how-will-american-airlines-benefit-its-new-fleet-plan-2016-08-30
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nan
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nan
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American Airlines, along with all other airlines, has benefited hugely from the low oil prices . Consequently, the low cost environment has enabled the carrier to refurbish, upgauge, and add more capacity to its fleet. While refurbishing will help the company provide its clients a more convenient and comfortable flying experience, fleet replacement will reduce its expenditure on depreciation and help save fuel costs.
*All numbers as of February 2016
The significant steps being taken by American to transform its fleet have resulted in the U.S. airline industry's youngest and most fuel-efficient fleet. Average fleet age is an important factor in an airline's performance. Usually, old airplanes cost more to operate due to their tendency to have higher maintenance expenses to keep up their performance. From the standpoint of operating costs, newer aircraft are preferred since they're more economical to maintain.
Attracted by the enhanced overall customer experience, the carrier can be expected to maintain, and even grow its market share, in the face of intense competition from low cost players such as JetBlue and Southwest. Further, the savings from a fuel efficient fleet will lower the company's operating costs, helping it offer the lowest airfares possible.
Have more questions about American Airlines ( AAL )? See the following links:
Lower Unit Revenues, Higher Tax Provisions Weigh On American Airlines' Q2'16 Results
American Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues To Weigh Heavily
Here Are The Key Factors That Can Impact American Airlines' Earnings Growth
Here's Why We Revised American Airlines' Price Estimate To $46 Per Share
American Airlines' 1Q'16 Revenue And Earnings Decline; Investors Penalize Airline For Downward Revision Of 2016 Capacity Growth Target
US Legacy Carriers: A Comparison Of Aircraft Fleet
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?
How Will American Airlines' Equity Value Move, If Crude Oil Prices Average $50 Per Barrel In 2018?
How Did American Airlines' Revenue And EBITDA Grow Over The Last Five Years?
How Did American Airlines Use Its Increased Cash Flows In 2015?
How Will American Airlines' Revenue And EBITDA Grow Over The Next Five Years?
What Is American Airlines' Fundamental Value Based On 2016 Estimated Numbers?
How Has The Oil Slump Impacted American Airlines' Operating Margins?
How Has American Airlines' Revenue And EBITDA Composition Changes Over The Last Five Years?
What Is American Airlines' Revenue And EBITDA Breakdown?
US Airlines: A Comparison Of Operating Margins
US Airlines: A Comparison Of Dividend Yields
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):
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.
|
Have more questions about American Airlines ( AAL )? Attracted by the enhanced overall customer experience, the carrier can be expected to maintain, and even grow its market share, in the face of intense competition from low cost players such as JetBlue and Southwest. Further, the savings from a fuel efficient fleet will lower the company's operating costs, helping it offer the lowest airfares possible.
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Have more questions about American Airlines ( AAL )? See the following links: Lower Unit Revenues, Higher Tax Provisions Weigh On American Airlines' Q2'16 Results American Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues To Weigh Heavily Here Are The Key Factors That Can Impact American Airlines' Earnings Growth Here's Why We Revised American Airlines' Price Estimate To $46 Per Share American Airlines' 1Q'16 Revenue And Earnings Decline; Investors Penalize Airline For Downward Revision Of 2016 Capacity Growth Target US Legacy Carriers: A Comparison Of Aircraft Fleet How Important Will American's International Operations Be In 2020? How Will American Airlines' Equity Value Move, If Crude Oil Prices Average $50 Per Barrel In 2018?
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Have more questions about American Airlines ( AAL )? American Airlines, along with all other airlines, has benefited hugely from the low oil prices . See the following links: Lower Unit Revenues, Higher Tax Provisions Weigh On American Airlines' Q2'16 Results American Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues To Weigh Heavily Here Are The Key Factors That Can Impact American Airlines' Earnings Growth Here's Why We Revised American Airlines' Price Estimate To $46 Per Share American Airlines' 1Q'16 Revenue And Earnings Decline; Investors Penalize Airline For Downward Revision Of 2016 Capacity Growth Target US Legacy Carriers: A Comparison Of Aircraft Fleet How Important Will American's International Operations Be In 2020?
|
Have more questions about American Airlines ( AAL )? Attracted by the enhanced overall customer experience, the carrier can be expected to maintain, and even grow its market share, in the face of intense competition from low cost players such as JetBlue and Southwest. See the following links: Lower Unit Revenues, Higher Tax Provisions Weigh On American Airlines' Q2'16 Results American Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues To Weigh Heavily Here Are The Key Factors That Can Impact American Airlines' Earnings Growth Here's Why We Revised American Airlines' Price Estimate To $46 Per Share American Airlines' 1Q'16 Revenue And Earnings Decline; Investors Penalize Airline For Downward Revision Of 2016 Capacity Growth Target US Legacy Carriers: A Comparison Of Aircraft Fleet How Important Will American's International Operations Be In 2020?
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ed5f7b32-e714-4724-afec-3c660148e573
|
7848.0
|
2016-08-30 00:00:00 UTC
|
Air Traffic Under Liberal Economic Policies: Upside Scenario
|
AAL
|
https://www.nasdaq.com/articles/air-traffic-under-liberal-economic-policies-upside-scenario-2016-08-30
|
nan
|
nan
|
Air transport, or the aviation industry, is the fundamental pillar of the world, indispensable to our daily lives, and essential for social and economic progress. The growing availability of affordable air travel has considerably widened aviation's role, making it no longer a luxury commodity. The industry has brought enormous benefits to developing economies by unlocking their potential for trade and tourism.
As one of the world's most important industries in terms of contribution to advancement and economic benefits, aviation's development is critical to any nation. The industry plays a decisive role in the lives of people, promoting a better quality of life by improving living standards. Research conducted by the International Air Transport Association (IATA) forecasts the growth in air traffic to almost double in the next two decades, hitting close to 7.3 billion in 2034, driven by socioeconomic recovery, low air fares, and demographic changes.
However, if the aviation industry is helped by seamless boundaries and liberal economic policies promoting immigration and cross-border trade, we may see an upside in this forecast of air traffic. As globalization results in more companies establishing international operations and foreign subsidiaries, leading to greater import penetration, we expect traffic to increase by approximately 4.7% year-on-year, as compared to 4.1% in the base case.
Under a scenario where liberal economic policies are coupled with higher standards of living due to a faster economic recovery in the world, we may see a still higher upside of 6.5% in air traffic.
This could be a happy surprise for the airline industry which, after a long struggle, has recently bounced due to the impact of low oil prices on its bottom line.
Have more questions about American Airlines ( AAL )? See the following links:
Lower Unit Revenues, Higher Tax Provisions Weigh On American Airlines' Q2'16 Results
American Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues To Weigh Heavily
Here Are The Key Factors That Can Impact American Airlines' Earnings Growth
Here's Why We Revised American Airlines' Price Estimate To $46 Per Share
American Airlines' 1Q'16 Revenue And Earnings Decline; Investors Penalize Airline For Downward Revision Of 2016 Capacity Growth Target
US Legacy Carriers: A Comparison Of Aircraft Fleet
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?
How Will American Airlines' Equity Value Move, If Crude Oil Prices Average $50 Per Barrel In 2018?
How Did American Airlines' Revenue And EBITDA Grow Over The Last Five Years?
How Did American Airlines Use Its Increased Cash Flows In 2015?
How Will American Airlines' Revenue And EBITDA Grow Over The Next Five Years?
What Is American Airlines' Fundamental Value Based On 2016 Estimated Numbers?
How Has The Oil Slump Impacted American Airlines' Operating Margins?
How Has American Airlines' Revenue And EBITDA Composition Changes Over The Last Five Years?
What Is American Airlines' Revenue And EBITDA Breakdown?
US Airlines: A Comparison Of Operating Margins
US Airlines: A Comparison Of Dividend Yields
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):
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.
|
Have more questions about American Airlines ( AAL )? However, if the aviation industry is helped by seamless boundaries and liberal economic policies promoting immigration and cross-border trade, we may see an upside in this forecast of air traffic. As globalization results in more companies establishing international operations and foreign subsidiaries, leading to greater import penetration, we expect traffic to increase by approximately 4.7% year-on-year, as compared to 4.1% in the base case.
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Have more questions about American Airlines ( AAL )? See the following links: Lower Unit Revenues, Higher Tax Provisions Weigh On American Airlines' Q2'16 Results American Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues To Weigh Heavily Here Are The Key Factors That Can Impact American Airlines' Earnings Growth Here's Why We Revised American Airlines' Price Estimate To $46 Per Share American Airlines' 1Q'16 Revenue And Earnings Decline; Investors Penalize Airline For Downward Revision Of 2016 Capacity Growth Target US Legacy Carriers: A Comparison Of Aircraft Fleet How Important Will American's International Operations Be In 2020? How Will American Airlines' Equity Value Move, If Crude Oil Prices Average $50 Per Barrel In 2018?
|
Have more questions about American Airlines ( AAL )? Under a scenario where liberal economic policies are coupled with higher standards of living due to a faster economic recovery in the world, we may see a still higher upside of 6.5% in air traffic. See the following links: Lower Unit Revenues, Higher Tax Provisions Weigh On American Airlines' Q2'16 Results American Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues To Weigh Heavily Here Are The Key Factors That Can Impact American Airlines' Earnings Growth Here's Why We Revised American Airlines' Price Estimate To $46 Per Share American Airlines' 1Q'16 Revenue And Earnings Decline; Investors Penalize Airline For Downward Revision Of 2016 Capacity Growth Target US Legacy Carriers: A Comparison Of Aircraft Fleet How Important Will American's International Operations Be In 2020?
|
Have more questions about American Airlines ( AAL )? Air transport, or the aviation industry, is the fundamental pillar of the world, indispensable to our daily lives, and essential for social and economic progress. See the following links: Lower Unit Revenues, Higher Tax Provisions Weigh On American Airlines' Q2'16 Results American Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues To Weigh Heavily Here Are The Key Factors That Can Impact American Airlines' Earnings Growth Here's Why We Revised American Airlines' Price Estimate To $46 Per Share American Airlines' 1Q'16 Revenue And Earnings Decline; Investors Penalize Airline For Downward Revision Of 2016 Capacity Growth Target US Legacy Carriers: A Comparison Of Aircraft Fleet How Important Will American's International Operations Be In 2020?
|
445135b7-ee6b-4e97-a30d-1fe4800fe166
|
7849.0
|
2016-08-30 00:00:00 UTC
|
Air Traffic Under Closed Economic Policies Due To Hostile Situations: Downside Scenario
|
AAL
|
https://www.nasdaq.com/articles/air-traffic-under-closed-economic-policies-due-hostile-situations-downside-scenario-2016
|
nan
|
nan
|
Research conducted by the International Air Transport Association (IATA) forecasts the growth in air traffic to almost double in the next two decades, hitting close to 7.3 billion in 2034, driven by socioeconomic recovery, low air fares, and demographic changes. In our previous note , we discussed the potential upside in future air traffic growth on account of more liberalized economic policies, resulting in globalization and better standards of living.
However, if the world continues to face terror attacks such as the recent serial bombings in Paris, growth in air traffic is likely to slow down, putting an end to the surging profits that airlines across the world have been enjoying due to depressed oil prices . The fear of such incidents puts pressure on air travel demand due to safety concerns, causing the aviation industry to suffer. Further, such incidents also prompt policy-makers to rethink globalization, causing severe distress to not only the citizens of the world but also air carriers.
To make matters worse, after such acts of terrorism, the drop in air traffic is usually coupled with a surge in prices of commodities such as crude oil and gold due to the uncertain economic outlook. Although short-lived, these trends impact air carriers' top line in the short term. In such a case, we can expect air traffic to only grow approximately 1.6% year-on-year, as compared to 4% in the base case.
Have more questions about American Airlines ( AAL )? See the following links:
Lower Unit Revenues, Higher Tax Provisions Weigh On American Airlines' Q2'16 Results
American Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues To Weigh Heavily
Here Are The Key Factors That Can Impact American Airlines' Earnings Growth
Here's Why We Revised American Airlines' Price Estimate To $46 Per Share
American Airlines' 1Q'16 Revenue And Earnings Decline; Investors Penalize Airline For Downward Revision Of 2016 Capacity Growth Target
US Legacy Carriers: A Comparison Of Aircraft Fleet
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?
How Will American Airlines' Equity Value Move, If Crude Oil Prices Average $50 Per Barrel In 2018?
How Did American Airlines' Revenue And EBITDA Grow Over The Last Five Years?
How Did American Airlines Use Its Increased Cash Flows In 2015?
How Will American Airlines' Revenue And EBITDA Grow Over The Next Five Years?
What Is American Airlines' Fundamental Value Based On 2016 Estimated Numbers?
How Has The Oil Slump Impacted American Airlines' Operating Margins?
How Has American Airlines' Revenue And EBITDA Composition Changes Over The Last Five Years?
What Is American Airlines' Revenue And EBITDA Breakdown?
US Airlines: A Comparison Of Operating Margins
US Airlines: A Comparison Of Dividend Yields
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):
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.
|
Have more questions about American Airlines ( AAL )? In our previous note , we discussed the potential upside in future air traffic growth on account of more liberalized economic policies, resulting in globalization and better standards of living. To make matters worse, after such acts of terrorism, the drop in air traffic is usually coupled with a surge in prices of commodities such as crude oil and gold due to the uncertain economic outlook.
|
Have more questions about American Airlines ( AAL )? See the following links: Lower Unit Revenues, Higher Tax Provisions Weigh On American Airlines' Q2'16 Results American Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues To Weigh Heavily Here Are The Key Factors That Can Impact American Airlines' Earnings Growth Here's Why We Revised American Airlines' Price Estimate To $46 Per Share American Airlines' 1Q'16 Revenue And Earnings Decline; Investors Penalize Airline For Downward Revision Of 2016 Capacity Growth Target US Legacy Carriers: A Comparison Of Aircraft Fleet How Important Will American's International Operations Be In 2020? How Will American Airlines' Equity Value Move, If Crude Oil Prices Average $50 Per Barrel In 2018?
|
Have more questions about American Airlines ( AAL )? Research conducted by the International Air Transport Association (IATA) forecasts the growth in air traffic to almost double in the next two decades, hitting close to 7.3 billion in 2034, driven by socioeconomic recovery, low air fares, and demographic changes. However, if the world continues to face terror attacks such as the recent serial bombings in Paris, growth in air traffic is likely to slow down, putting an end to the surging profits that airlines across the world have been enjoying due to depressed oil prices .
|
Have more questions about American Airlines ( AAL )? To make matters worse, after such acts of terrorism, the drop in air traffic is usually coupled with a surge in prices of commodities such as crude oil and gold due to the uncertain economic outlook. See the following links: Lower Unit Revenues, Higher Tax Provisions Weigh On American Airlines' Q2'16 Results American Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues To Weigh Heavily Here Are The Key Factors That Can Impact American Airlines' Earnings Growth Here's Why We Revised American Airlines' Price Estimate To $46 Per Share American Airlines' 1Q'16 Revenue And Earnings Decline; Investors Penalize Airline For Downward Revision Of 2016 Capacity Growth Target US Legacy Carriers: A Comparison Of Aircraft Fleet How Important Will American's International Operations Be In 2020?
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f01b24e7-69bd-478a-9816-c46ed376be02
|
7850.0
|
2016-08-26 00:00:00 UTC
|
LA City Council OKs Delta's $1.9B LAX Modernization Plans
|
AAL
|
https://www.nasdaq.com/articles/la-city-council-oks-deltas-%241.9b-lax-modernization-plans-2016-08-26
|
nan
|
nan
|
Good news flowed in at the Atlanta, GA-based Delta Air Lines DAL regarding its efforts to modernize its terminals at the Los Angeles International Airport (LAX). The airline behemoth's lease and license agreement to relocate to terminals 2 and 3 from terminals 5 and 6 at the airport received approval from Los Angeles City Council. The carrier plans to invest $1.9 billion for the upgradation purpose. The agreement aims at expanding Delta's gates at this key hub.
The sanction marks a huge step toward fulfilling Delta's aim to upgrade its facilities at the busy airport where it has grown considerably over the years. An extent of its growth at LAX can be measured from the fact that departures (on a daily basis) are currently in excess of 175 compared to 70 in 2009. By relocating to terminals 2 and 3, Delta aspires to carve out "a premier space" for its operations at the busy airport along with its partners in the airline space like Virgin Atlantic and Virgin Australia.
DELTA AIR LINES Price
DELTA AIR LINES Price | DELTA AIR LINES Quote
The $1.9 billion plan has already gained authorization from Los Angeles World Airports' Board of Airport Commissioners. The City Council's approval has removed a big hurdle as far as the materialization of Delta's plan is concerned.
An environmental impact review process will now take place. In the event of Delta succeeding in its efforts to modernize its LAX operations, passengers will be the greatest benefactors and it will pave the way for Delta in becoming a dominant carrier at LAX.. In fact, Delta is not the only carrier looking to expand at LAX. Earlier this year, American Airlines Group AAL had announced its expansion plans at LAX.
Apart from Delta and American Airlines, almost all major US carriers including United Continental Holdings UAL operate at LAX. Consequently, we expect investor focus to remain on updates regarding Delta's efforts to beat the competition and become a dominant player at LAX.
We note that carriers are making huge investments for infrastructural developments driven by cheap oil. Soft oil prices have resulted in huge savings for carriers thereby improving their financial status tremendously.
Zacks Rank & A Key Pick
Delta Air Lines carries a Zacks Rank #5 (Strong Sell). A better-ranked stock in the airline space is Copa Holdings CPA with a Zacks Rank #2 (Buy).
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 >>
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 (DAL): Free Stock Analysis Report
COPA HLDGS SA-A (CPA): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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Earlier this year, American Airlines Group AAL had announced its expansion plans at LAX. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Good news flowed in at the Atlanta, GA-based Delta Air Lines DAL regarding its efforts to modernize its terminals at the Los Angeles International Airport (LAX).
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Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Earlier this year, American Airlines Group AAL had announced its expansion plans at LAX. Good news flowed in at the Atlanta, GA-based Delta Air Lines DAL regarding its efforts to modernize its terminals at the Los Angeles International Airport (LAX).
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Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Earlier this year, American Airlines Group AAL had announced its expansion plans at LAX. DELTA AIR LINES Price DELTA AIR LINES Price | DELTA AIR LINES Quote The $1.9 billion plan has already gained authorization from Los Angeles World Airports' Board of Airport Commissioners.
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Earlier this year, American Airlines Group AAL had announced its expansion plans at LAX. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The airline behemoth's lease and license agreement to relocate to terminals 2 and 3 from terminals 5 and 6 at the airport received approval from Los Angeles City Council.
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a18f15a6-0eea-4bc3-a946-5b8e48d1113f
|
7851.0
|
2016-08-25 00:00:00 UTC
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Is A Turnaround In The Cards For United Continental?
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AAL
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https://www.nasdaq.com/articles/turnaround-cards-united-continental-2016-08-25
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nan
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nan
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United Continental Holdings ( UAL ) has been in the doldrums for quite some time now. It has witnessed currency headwinds resulting in pressure on unit revenues, causing its international revenue to decline sharply. Further, the gradual recovery in oil prices has also pulled down its operating margins in the last quarter. However, the major blow that has rocked United's boat is the frequent changes and scandals that its senior executive body have faced over the last one year. This has not only left investors wary of the company and its capabilities, but has also raised a question on the carrier's ability to perform operationally.
Senior Management Shake-Up
To give some background, United's President and Chief Executive Officer ( CEO ), Jeff Smisek, along with two other senior officials, were forced to step down due to a federal investigation questioning their connections with the Port Authority of New York and New Jersey in September 2015. Following this development, United's stock price dropped drastically, indicating the unrest among investors. As a result, Oscar Munoz was named the new CEO, tasked with the mammoth work of turning around the under-performing airline. However, a month into his role, Munoz suffered a heart attack causing him to return to full-time work only in March 2016. On his return, he had to confront a proxy battle, which owing to his excellent tactics ended in an agreement, overhauling the composition of United's board.
Munoz's Achievements So Far
Since his appointment, Munoz has managed to improve United's on-time performance and won back some crucial high-spending business travelers. These are important developments for an airline which had left many of its passengers disgruntled after numerous episodes of technical glitches post its merger with Continental in 2010. Further, the CEO was able to successfully maneuver the ratification of two important labor agreements with technicians and flight attendants, extending their contracts and allowing the laborers from United and Continental to finally work together.
However, the gradual recovery in oil prices has weighed on United's operating margins in the last quarter. In addition, the airline's position is being challenged by other legacy carriers such as Delta and American who have been restricting their capacity growth to turn their unit revenues (PRASM) positive by end of this year. Also, the Chicago-based airline is facing competition from low-cost carriers such as JetBlue, and Alaska Air, who are relentlessly expanding their existing capacity.
Thus, in a recent and an unexpected move, Munoz appointed Andrew Levy to serve as the new Chief Financial Officer ( CFO ), and Julia Haywood as the new Chief Commercial Officer ( CCO ). This news is widely being seen as a positive for the airline due to the Levy's credibility in the industry, who single-handedly transformed the Allegiant Travel Co. into one of the world's most profitable carriers.
The Path Forward
In June this year, CEO Munoz said that he was reviewing United's operations to understand the routes and hubs that are profitable for the company. On the basis of this review, we can expect the company to add capacity to strengthen its best performing markets, including domestic hubs in San Francisco, Newark, Houston, Denver, and Chicago, and an Asia-Pacific presence that surpasses many of its peers, while lowering its capacity in the international markets. In line with this, United has reduced its 2016 capacity growth target by 0.75% since the beginning of the year.
Revision In Capacity
(Between January'16 To June'16)
Delta and JetBlue recently announced plans to expand their services in Boston and other Caribbean routes to establish their foothold on these crowded and busy trans-continental routes. However, we haven't heard much in terms of expansion plans from United. In order to come out of the rut it finds itself in, it will be important for the company to ensure it remains competitive in the face of falling unit revenues and low profit margins, despite the windfall from low oil prices.
If the airline does not work towards improving its operational performance and overall perception in the market in the near future, it may become difficult for the world's second largest airline to catch up with its peers. While it remains to be seen what the new leadership will bring to the table, we foresee a tough road ahead for United.
Have more questions about United Continental ( UAL )? See the links below:
United Witnesse d A Decline In Q2'16 Earnings, Despite Substantial Fuel Cost Savings
United Continental Q2'16 Earnings Preview: Higher Oil Prices & Declining PRASM To Weigh On Results
Here's Why We Have Revised United Continental's Price Estimate To $52 Per Share
Lower PRASM And Higher Tax Bill Caused United Continental's 1Q'16 Earnings To Drop Despite Huge Fuel Cost Savings
Currency Headwinds To Offset United Continental's Fuel Cost Savings For 1Q'16
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?
How Will United's Revenue And EBITDA Grow Over The Next Five Years?
How Important Is United's International Division For Its Overall Equity Value?
What Is United's Fundamental Value Based On 2016 Estimated Numbers?
Why We Think United Continental Is Worth $65 Per Share?
What Drove United's Revenue And EBITDA Growth Over The Last Five Years?
How Has United's Revenue And EBITDA Composition Changed Over The Last Five Years?
What Is United Continental's Revenue And EBITDA Breakdown?
How Has United Continental Utilized Its Cash Flows Over The Last Three Years?
How Have Plummeting Crude Oil Prices Impacted United Continental's Operating Margin?
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.
|
This news is widely being seen as a positive for the airline due to the Levy's credibility in the industry, who single-handedly transformed the Allegiant Travel Co. into one of the world's most profitable carriers. The Path Forward In June this year, CEO Munoz said that he was reviewing United's operations to understand the routes and hubs that are profitable for the company. 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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See the links below: United Witnesse d A Decline In Q2'16 Earnings, Despite Substantial Fuel Cost Savings United Continental Q2'16 Earnings Preview: Higher Oil Prices & Declining PRASM To Weigh On Results Here's Why We Have Revised United Continental's Price Estimate To $52 Per Share Lower PRASM And Higher Tax Bill Caused United Continental's 1Q'16 Earnings To Drop Despite Huge Fuel Cost Savings Currency Headwinds To Offset United Continental's Fuel Cost Savings For 1Q'16 How Will United's Equity Value Be Impacted If The Crude Oil Prices Rebound To $100 Per Barrel By 2018? How Have Plummeting Crude Oil Prices Impacted United Continental's Operating Margin? 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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In addition, the airline's position is being challenged by other legacy carriers such as Delta and American who have been restricting their capacity growth to turn their unit revenues (PRASM) positive by end of this year. In order to come out of the rut it finds itself in, it will be important for the company to ensure it remains competitive in the face of falling unit revenues and low profit margins, despite the windfall from low oil prices. See the links below: United Witnesse d A Decline In Q2'16 Earnings, Despite Substantial Fuel Cost Savings United Continental Q2'16 Earnings Preview: Higher Oil Prices & Declining PRASM To Weigh On Results Here's Why We Have Revised United Continental's Price Estimate To $52 Per Share Lower PRASM And Higher Tax Bill Caused United Continental's 1Q'16 Earnings To Drop Despite Huge Fuel Cost Savings Currency Headwinds To Offset United Continental's Fuel Cost Savings For 1Q'16 How Will United's Equity Value Be Impacted If The Crude Oil Prices Rebound To $100 Per Barrel By 2018?
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In addition, the airline's position is being challenged by other legacy carriers such as Delta and American who have been restricting their capacity growth to turn their unit revenues (PRASM) positive by end of this year. If the airline does not work towards improving its operational performance and overall perception in the market in the near future, it may become difficult for the world's second largest airline to catch up with its peers. How Will United's Revenue And EBITDA Grow Over The Next Five Years?
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8fe5d17b-3d10-42f1-9466-bc268ecb9576
|
7852.0
|
2016-08-24 00:00:00 UTC
|
Delta Versus JetBlue: Expansion Into Boston And Its Effect On Unit Revenues
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AAL
|
https://www.nasdaq.com/articles/delta-versus-jetblue-expansion-boston-and-its-effect-unit-revenues-2016-08-24
|
nan
|
nan
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After flying high on low fuel prices for almost two years, the U.S. airlines are grappling with the hard reality of falling unit revenues and intense competition in the aviation space. The legacy carriers' unit revenues face pressure not only from international foreign currency fluctuations and economic uncertainty, but also domestically due to strong competition from low-fare airlines like JetBlue, Alaska Air, and SouthWest. JetBlue, with its premium seat offering program "Mint," has taken the U.S. transcontinental market by wind, establishing its foothold in the markets of Boston, Fort Lauderdale, and New York. To compete with these small-time players and reiterate its presence within the space, Delta Air Lines ( DAL ) is planning an expansion strategy in the very busy and crowded market of Boston.
Expansion In Boston
In a press release last week, Delta Air Lines announced its plan to expand its operations from Boston, offering new service to San Francisco and Nashville, as well as more flights to Seattle, Orlando, and Milwaukee. It will also add weekly service from Boston to key destinations in Caribbean-Montego Bay, Jamaica, Punta Cana, and U.S. Virgin Islands-St. Thomas. The company will offer these services in a phased manner beginning in November, expecting completion by June 2017. By June of next year, Delta expects 90 departures at peak periods to 26 destinations, effecting its capacity significantly.
Source: Delta Press Release
This move is being seen as a response to JetBlue's increasing dominance in Boston, which already offers services on all of the aforementioned routes, except Milwaukee. Jetblue's share of total enplaned passengers at the Boston airport stands at a strong 30% as of May 2016, as opposed to Delta's 12%. Over the years, JetBlue has become the largest airline at the Boston Logan International Airport, offering more flights and nonstop destinations than any other carrier at the airport. With the already significant presence in the city, it has also initiated Mint services on its flights on the Boston-San Francisco route to capture business travelers.
JetBlue's Domestic Market Share By Geography
Source: Bureau of Transportation Statistics
Impact On PRASM
In its latest earnings release, Delta cut its capacity guidance, both domestically and internationally, by half a percentage point to 2% for the second half of the year. This cut was aimed at pushing the company's unit revenues in the positive territory after a prolonged decrease in the statistic. The legacy carrier expected a 3.0% - 3.5% drop in its capacity from peak summer to the winter. Although positive unit revenues are an important metric by which the industry judges any airline, it is also important that the company continues showcasing growth in the face of significant growth coming from JetBlue and west coast rival Alaska Airlines.
Have more questions about Delta Air Lines ( DAL )? See the links below:
Delta Airlines Re-Fleeting Program: How Will It Help?
Why Has Trefis Lowered Delta's Price Estimate From $51 To $44 Per Share?
Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues
Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2'16
Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16
What Should We Expect From Delta's 1Q'16 Results?
How Did The Legacy Carriers Perform Operationally In January?
Why Did Delta's Operating Margin Soar In 2015?
Delta Air Lines: The Year 2015 In Review
How Will Delta's Revenue And EBITDA Grow Between 2015 and 2018?
How Has Delta's Revenue And EBITDA Changed Over The Last Five Years
What Is Delta's Revenue And EBITDA Brekdown?
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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After flying high on low fuel prices for almost two years, the U.S. airlines are grappling with the hard reality of falling unit revenues and intense competition in the aviation space. The legacy carriers' unit revenues face pressure not only from international foreign currency fluctuations and economic uncertainty, but also domestically due to strong competition from low-fare airlines like JetBlue, Alaska Air, and SouthWest. To compete with these small-time players and reiterate its presence within the space, Delta Air Lines ( DAL ) is planning an expansion strategy in the very busy and crowded market of Boston.
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To compete with these small-time players and reiterate its presence within the space, Delta Air Lines ( DAL ) is planning an expansion strategy in the very busy and crowded market of Boston. Expansion In Boston In a press release last week, Delta Air Lines announced its plan to expand its operations from Boston, offering new service to San Francisco and Nashville, as well as more flights to Seattle, Orlando, and Milwaukee. Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2'16 Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16 What Should We Expect From Delta's 1Q'16 Results?
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Expansion In Boston In a press release last week, Delta Air Lines announced its plan to expand its operations from Boston, offering new service to San Francisco and Nashville, as well as more flights to Seattle, Orlando, and Milwaukee. Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2'16 Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16 What Should We Expect From Delta's 1Q'16 Results? How Has Delta's Revenue And EBITDA Changed Over The Last Five Years What Is Delta's Revenue And EBITDA Brekdown?
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The legacy carriers' unit revenues face pressure not only from international foreign currency fluctuations and economic uncertainty, but also domestically due to strong competition from low-fare airlines like JetBlue, Alaska Air, and SouthWest. Expansion In Boston In a press release last week, Delta Air Lines announced its plan to expand its operations from Boston, offering new service to San Francisco and Nashville, as well as more flights to Seattle, Orlando, and Milwaukee. Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2'16 Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16 What Should We Expect From Delta's 1Q'16 Results?
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b2a752db-c4d1-4bee-a9b0-172dd37445f7
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7853.0
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2016-08-19 00:00:00 UTC
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Bears Are Betting Big Against Gogo Inc. Are They Wrong?
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AAL
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https://www.nasdaq.com/articles/bears-are-betting-big-against-gogo-inc-are-they-wrong-2016-08-19
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nan
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nan
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GOGO data by YCharts .
Even though shares have slid over 60% since December 2013, investors are still betting against Gogo in droves. A full 36% of the company's shares outstanding are being sold short. Could those bears be on to something, or are they making a huge mistake?
The crux of the argument: Is there any moat?
The thesis for an investment in Gogo looks like this:
The company was the first-mover in the industry, starting in 2008 and now being used in nearly 2,600 aircrafts in North America.
The status would help Gogo lock in long-term contracts with airlines.
Those contracts would provide revenue to create an unmatched connectivity infrastructure. The newest iteration of this service is the company's 2Ku technology.
With competition unable to match this infrastructure, Gogo would have pricing power in a growing worldwide industry.
The problem is that over the past year, the wheels have come off of this thesis. The moat, or sustainable competitive advantage, that investors were counting on has completely dried up with the entrance of ViaSat (NASDAQ: VSAT) into the industry.
The first cracks emerged in February when American Airlines Group (NASDAQ: AAL) sued to get out of its contract with Gogo in favor of ViaSat. Although that lawsuit was dropped, it wasn't the last time ViaSat would meddle with Gogo's partnership with American.
In May, Gogo's stock surged when management announced that it had received a major proposal from an airline customer. So confident was management in the deal that it decided to cancel a debt issuance worth over $500 million. But just a week later, CEO Michael Small was wiping egg off of his face: The deal had been with American Airlines, and Gogo would be providing next-gen hardware to some of American's fleet, but American announced that it was ViaSat, not Gogo, that would be providing connectivity to American's new 737 MAX planes.
Why short-sellers have a strong case
The takeaway from this is clear: ViaSat provides a solution that is just as good as Gogo's (at least in the eyes of one major airline). That's bad news for Gogo investors, because it eliminates anything that resembles a moat that Gogo was believed to have.
Clearly, the technology that Gogo provides is being commoditized. When that happens, the company with the most cash is usually the winner. Pricing wars will commence, with each company trying to gain market share while sacrificing margins over the short term. Once competition is driven out, the winner can slowly raise prices and focus on profitability.
There are two variables decidedly working against Gogo. First, ViaSat is vertically integrated: It owns and operates its own satellites, instead of relying on third-parties, as Gogo must do. While Gogo doesn't have to pay nosebleed prices for these services, ViaSat undoubtedly has a cost advantage here.
If we look at each company's financials, it would be easy to assume that Gogo might have the advantage.
Data source: Yahoo! Finance. Net income and FCF presented in trailing-12-month basis.
ViaSat's profitability over the past 12 months doesn't mean much in the face of such steep FCF losses. But part of that has to do with the company's entrance into in-flight connectivity. Unlike Gogo, it has several other, more profitable divisions.
For instance, in the company's first fiscal 2016 quarter, satellite services brought in $82 million in operating profit, and government systems hauled in $87 million. It was only the commercial networks division -- of which in-flight connectivity is included -- that lost cash, $111 million.
Without this endeavor, ViaSat would likely have a much easier time generating free cash flow. The takeaway is the fact that ViaSat can rely on two other segments to effectively subsidize its in-flight ambitions. That's something Gogo can't rely on.
And that's why, at the end of the day, I think those that are shorting Gogo have a fairly strong case. Though I certainly could be proven wrong, I don't see the coming price wars benefiting Gogo or its shareholders.
A secret billion-dollar stock opportunity
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Brian Stoffel has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The first cracks emerged in February when American Airlines Group (NASDAQ: AAL) sued to get out of its contract with Gogo in favor of ViaSat. The moat, or sustainable competitive advantage, that investors were counting on has completely dried up with the entrance of ViaSat (NASDAQ: VSAT) into the industry. Why short-sellers have a strong case The takeaway from this is clear: ViaSat provides a solution that is just as good as Gogo's (at least in the eyes of one major airline).
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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 first cracks emerged in February when American Airlines Group (NASDAQ: AAL) sued to get out of its contract with Gogo in favor of ViaSat. But just a week later, CEO Michael Small was wiping egg off of his face: The deal had been with American Airlines, and Gogo would be providing next-gen hardware to some of American's fleet, but American announced that it was ViaSat, not Gogo, that would be providing connectivity to American's new 737 MAX planes.
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The first cracks emerged in February when American Airlines Group (NASDAQ: AAL) sued to get out of its contract with Gogo in favor of ViaSat. But just a week later, CEO Michael Small was wiping egg off of his face: The deal had been with American Airlines, and Gogo would be providing next-gen hardware to some of American's fleet, but American announced that it was ViaSat, not Gogo, that would be providing connectivity to American's new 737 MAX planes. That's bad news for Gogo investors, because it eliminates anything that resembles a moat that Gogo was believed to have.
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The first cracks emerged in February when American Airlines Group (NASDAQ: AAL) sued to get out of its contract with Gogo in favor of ViaSat. The moat, or sustainable competitive advantage, that investors were counting on has completely dried up with the entrance of ViaSat (NASDAQ: VSAT) into the industry. While Gogo doesn't have to pay nosebleed prices for these services, ViaSat undoubtedly has a cost advantage here.
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808c5f88-eda6-4bb2-9002-622060cf52a9
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7854.0
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2016-08-11 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Virgin America, Copa Holdings, American Airlines Group, Delta Air Lines and Alaska Air Group
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-virgin-america-copa-holdings-american-airlines-group
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nan
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nan
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For Immediate Release
Chicago, IL - August 11, 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 Virgin America ( VA ), Copa Holdings ( CPA ), American Airlines Group ( AAL ), Delta Air Lines ( DAL ) and Alaska Air Group ( ALK ).
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: Q2 Earnings Wrap-Up
The past week saw CA-based low cost carrier Virgin America ( VA ) report lackluster Q2 results with both earnings and revenues lagging expectations. On the other hand, Latin American carrier Copa Holdings ( CPA ) performed impressively in the second quarter, coming up with better-than-expected earnings as well as revenues.
On the non-earnings front, American Airlines Group ( AAL ) stole the limelight by virtue of its improved unit revenue forecast for the third quarter and the tentative pay-related deal pertaining to its ground employees. Other notable highlights in the week included the disruption at Delta Air Lines ( DAL ) due to a power outage.
TRANSPORTATION-AIRLINE Industry Price Index
(Read the last Airline Stock Roundup for Aug 03, 2016 ).
Recap of the Past Week's Most Important Stories
1. Virgin America, which is expected to be acquired by Alaska Air Group ( ALK ) by year-end, reported lower-than-expected earnings and revenues in the second quarter of 2016. Earnings declined 36.3% from the year-ago quarter (read more: Virgin America Q2 Earnings & Revenues Miss ).
2. Copa Holdings' second-quarter earnings (on an adjusted basis) of 51 cents per share were well above the Zacks Consensus Estimate of 23 cents. Earnings were however significantly below the year-ago figure of 93 cents. Quarterly revenues declined 8.2% on a year-over-year basis to $494 million. Revenues, however, beat the Zacks Consensus Estimate of $483 million.
The year-over-year decline was primarily due to the 8.6% decline in passenger revenues. Operating revenue per available seat mile declined 7.7% and yield per passenger mile decreased 14%. Average fuel price per gallon declined 21.3% year over year. Passenger traffic (on a consolidated basis) climbed 6.2% and capacity contracted 0.4% during the quarter. Load factor climbed 490 basis points to 78.3% as traffic expanded while capacity contracted.
3. Delta Air Lines had to call off over 400 flights and delay several due to a power outage in Atlanta on Aug 8. The outage affected the computer systems which disrupted the company's operations worldwide (read more: Delta Air Lines: Power Outage Disrupts Operations ).
4. Shares of American Airlines were boosted by the tentative labor deal with the TWU-IAM Association, covering 30,000 of its ground employees. The TWU-IAM Association, formed in 2013, is an alliance between the Transport Workers Union (TWU) and the International Association of Machinists and Aerospace Workers (IAM). The deal, covering 12 organized workers' groups in maintenance, fleet service and other ground services, increases pay by an average of 22%, according to the union (read more: Here's Why American Airlines Stock is Popping Today ).
On a separate note, American Airlines revealed July traffic numbers wherein revenue passenger miles (RPMs: a measure of traffic) declined 0.3% while available seat miles (ASMs: a measure of capacity) climbed 2.3%. Load factor declined 210 basis points to 85.2% as traffic contracted while capacity expanded. American Airlines now expects total revenue per available seat mile (RASM: a measure of unit revenue) decline in the band of 3% to 5% for the third quarter (previous outlook had called for a decline in the range of 3.5% to 5.5%). The carrier still expects third-quarter pretax margin, excluding special items, in the band of 12% to 14%.
5. United Continental maintains its consolidated passenger unit revenue decline projection for the third quarter in the band of 5.5% to 7.5%. Traffic - measured in revenue passenger miles - stood at 20.7 billion in Jul 2016, up 1.2% from a year ago. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 0.7% to 23.7 billion. Meanwhile, the load factor increased to 87.5% from 87% a year ago.
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Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock 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.
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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! Register for your free subscription to Profit from the Pros .
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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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VIRGIN AMERICA (VA): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
COPA HLDGS SA-A (CPA): Free Stock Analysis Report
ALASKA AIR GRP (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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On the non-earnings front, American Airlines Group ( AAL ) stole the limelight by virtue of its improved unit revenue forecast for the third quarter and the tentative pay-related deal pertaining to its ground employees. Stocks recently featured in the blog Virgin America ( VA ), Copa Holdings ( CPA ), American Airlines Group ( AAL ), Delta Air Lines ( DAL ) and Alaska Air Group ( ALK ). Click to get this free report VIRGIN AMERICA (VA): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog Virgin America ( VA ), Copa Holdings ( CPA ), American Airlines Group ( AAL ), Delta Air Lines ( DAL ) and Alaska Air Group ( ALK ). Click to get this free report VIRGIN AMERICA (VA): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. On the non-earnings front, American Airlines Group ( AAL ) stole the limelight by virtue of its improved unit revenue forecast for the third quarter and the tentative pay-related deal pertaining to its ground employees.
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Click to get this free report VIRGIN AMERICA (VA): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog Virgin America ( VA ), Copa Holdings ( CPA ), American Airlines Group ( AAL ), Delta Air Lines ( DAL ) and Alaska Air Group ( ALK ). On the non-earnings front, American Airlines Group ( AAL ) stole the limelight by virtue of its improved unit revenue forecast for the third quarter and the tentative pay-related deal pertaining to its ground employees.
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Stocks recently featured in the blog Virgin America ( VA ), Copa Holdings ( CPA ), American Airlines Group ( AAL ), Delta Air Lines ( DAL ) and Alaska Air Group ( ALK ). On the non-earnings front, American Airlines Group ( AAL ) stole the limelight by virtue of its improved unit revenue forecast for the third quarter and the tentative pay-related deal pertaining to its ground employees. Click to get this free report VIRGIN AMERICA (VA): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here.
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bb778df8-c904-4cab-be00-b875a3a92525
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7855.0
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2016-08-10 00:00:00 UTC
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After Delta's (DAL) Latest Woes, Are Airline Stocks Worth Consideration?
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AAL
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https://www.nasdaq.com/articles/after-deltas-dal-latest-woes-are-airline-stocks-worth-consideration-2016-08-10
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nan
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nan
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Delta Air Lines' DALstring of woes continued into Wednesday after the company cancelled 255 more flights, higher than its previous expectation of 90 flights. This comes after 775 cancellations on Tuesday and 1,000 on Monday. Delta had experienced a power outage on Monday, which went on to affect computer systems and thusly the company's global operations.
Southwest Air Lines LUV went through the same situation about three weeks before, when a router failure ultimately resulted in the cancellation of 2,000 flights and delays for another 7,000. In July, United Continental Holdings UAL also experienced a router issue, which resulted in a two-hour delay for all flights globally.
The airline industry is difficult to invest in, since it is exposed to many different macroeconomic factors, and is notably hurt whenever companies experience any kind of service disruption. World-renowned investor Warren Buffett once said that "Investors have poured their money into airlines and airline manufacturers for 100 years with terrible results."
Let's take a look at some major airliner's recent performance, and if they might be on track to prove Mr. Buffett wrong.
Delta Air Lines
Delta Air Lines was down 1.6% in afternoon trading on Wednesday on the aforementioned news.
The company has seen downward earnings estimate revisions for every period in the foreseeable future. Current quarter estimates stand at $1.76 in earnings per share, down from the $1.88 estimate 60 days ago. Current fiscal year estimates stand at $5.92 per share, which is down from the $6.41 estimate 60 days ago.
Although Delta reported better-than-expected earnings in Q2, it has to deal with currency headwinds and a shift in consumer sentiment due to recent terror attacks. The airline industry sits in the bottom 8% of the Zacks Rank, so I wouldn't expect anything special in the near future.
DELTA AIR LINES Price and EPS Surprise
DELTA AIR LINES Price and EPS Surprise | DELTA AIR LINES Quote
Delta currently sits at a Zacks Rank #5 (Strong Sell),
Southwest Air Lines
Southwest Air Lines has brought its operations back to normal, but shares have not recovered to pre-outage levels. As we have discussed , the company has not yet settled an agreement with its unions, missed Q2 earnings estimates, has outdated technology, and is engaged in ticket pricing wars with fellow discount airliners which are hurting revenues.
The culmination of these concerns along with downward earnings estimate revisions makes it difficult to believe that Southwest is out of the woods. Current quarter estimates stand at $0.93 in earnings per share, down from the $1.09 estimate of 60 days ago. Current fiscal year estimates are down to $3.95 from $4.23 per share.
SOUTHWEST AIR Price and EPS Surprise
SOUTHWEST AIR Price and EPS Surprise | SOUTHWEST AIR Quote
Southwest currently sits at a Zacks Rank #5 (Strong Sell).
United Continental Holdings
United beat Q2 earnings expectations, but saw a 21.1% and 5.2% respective year-over-year decline in earnings per share and revenues. However, the company did also buy back $694 million worth of shares, with $255 million remaining under its current program, and approved another $2 billion worth of buybacks.
The company will launch a business traveler focused service, United Polaris, later in the year. These new initiatives reflect increased management confidence in United's outlook, but earnings estimate revisions still serve as some cause for concern.
Current quarter estimates are down to $2.84 per share from the original $2.97 estimate. Fiscal year estimates stand at $7.94, down from the previous $8.27 estimate. Given the company's storied history and potentially new source of revenue, United could still be worth keeping an eye on moving forward.
UNITED CONT HLD Price and EPS Surprise
UNITED CONT HLD Price and EPS Surprise | UNITED CONT HLD Quote
United currently sits at a Zacks Rank #3 (Hold).
JetBlue Airways
Like Southwest, JetBlue Airways JBLU is a discount airliner, operating an average of 800 daily flights and carrying 30 million customers annually. Concerns with the company include increasing maintenance costs due to its use of an older fleet and engines. Along with being subject to the same headwinds as industry peers, JetBlue is also losing revenue on competitive ticket pricing.
However the company did also report increased traffic growth in July, which is a healthy sign. Still, JetBlue has seen multiple downward earnings estimate revisions. Current quarter estimates are down three cents to $0.57, while fiscal year estimates are down 14 cents to $2.14.
JETBLUE AIRWAYS Price and EPS Surprise
JETBLUE AIRWAYS Price and EPS Surprise | JETBLUE AIRWAYS Quote
JetBlue currently sits at a Zacks Rank #5 (Strong Sell).
American Airlines
American Airlines AAL recently made news when it reached an agreement with 30,000 employees, agreeing to provide them an average pay raise of 22%. As we noted with Southwest, union discontent can be a major source of concern for airliners, and this recent news serves to quell that concern for American.
Furthermore, American beat Q2 earnings expectations, posting its 11 th consecutive positive surprise. Unlike discount airliners, it has benefited from the oil glut, and expects to save money due to lowered fuel costs. The company also bought back $1.7 billion worth of stock in Q2 and paid out $58 million in dividends.
American is pouring money into new airliners, having retired 31 aircraft in Q2 and investing $1.2 billion towards new aircraft during the quarter. However, like every other airliner, it has seen downward earnings estimate revisions. Current quarter estimates are down 19 cents to $1.54, while fiscal year estimates are down 25 cents to $5.44.
AMER AIRLINES Price and EPS Surprise
AMER AIRLINES Price and EPS Surprise | AMER AIRLINES Quote
American currently sits at a Zacks Rank #3 (Hold).
Bottom Line
The airline industry as a whole has fallen on hard times, again. Each company has seen a drop in Passenger Revenue per Available Seat Mile (PRASM), which is a key metric for these companies. Furthermore, a stronger U.S. dollar, Brexit, and terror attacks are a few of the many factors that have impacted tourism and spending in general.
Although some companies are working on promising new initiatives, the airline industry has plenty of work ahead. Then again, it always does.
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 >>
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 AIR (LUV): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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 American Airlines AAL recently made news when it reached an agreement with 30,000 employees, agreeing to provide them an average pay raise of 22%. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The airline industry is difficult to invest in, since it is exposed to many different macroeconomic factors, and is notably hurt whenever companies experience any kind of service disruption.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines American Airlines AAL recently made news when it reached an agreement with 30,000 employees, agreeing to provide them an average pay raise of 22%. DELTA AIR LINES Price and EPS Surprise DELTA AIR LINES Price and EPS Surprise | DELTA AIR LINES Quote Delta currently sits at a Zacks Rank #5 (Strong Sell), Southwest Air Lines Southwest Air Lines has brought its operations back to normal, but shares have not recovered to pre-outage levels.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines American Airlines AAL recently made news when it reached an agreement with 30,000 employees, agreeing to provide them an average pay raise of 22%. DELTA AIR LINES Price and EPS Surprise DELTA AIR LINES Price and EPS Surprise | DELTA AIR LINES Quote Delta currently sits at a Zacks Rank #5 (Strong Sell), Southwest Air Lines Southwest Air Lines has brought its operations back to normal, but shares have not recovered to pre-outage levels.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines American Airlines AAL recently made news when it reached an agreement with 30,000 employees, agreeing to provide them an average pay raise of 22%. Current quarter estimates stand at $1.76 in earnings per share, down from the $1.88 estimate 60 days ago.
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99e3998c-3a1e-4a89-9b6c-396f14d187a7
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7856.0
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2016-08-10 00:00:00 UTC
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After Hours Most Active for Aug 10, 2016 : QLGC, FNF, SHAK, LMT, XIV, TTWO, T, BAC, FOXA, CSCO, RAD, AAL
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AAL
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https://www.nasdaq.com/articles/after-hours-most-active-aug-10-2016-qlgc-fnf-shak-lmt-xiv-ttwo-t-bac-foxa-csco-rad-aal
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nan
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The NASDAQ 100 After Hours Indicator is down -.35 to 4,783.04. The total After hours volume is currently 21,820,605 shares traded.
The following are the most active stocks for the after hours session :
QLogic Corporation ( QLGC ) is +0.01 at $15.70, with 1,944,883 shares traded. QLGC's current last sale is 104.67% of the target price of $15.
Fidelity National Financial, Inc. ( FNF ) is unchanged at $36.60, with 1,572,319 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2016. The consensus EPS forecast is $0.72. As reported by Zacks, the current mean recommendation for FNF is in the "buy range".
Shake Shack, Inc. ( SHAK ) is -3.57 at $37.30, with 1,233,936 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2016. The consensus EPS forecast is $0.15. Business Wire Reports: Shake Shack Announces Second Quarter 2016 Financial Results
Lockheed Martin Corporation ( LMT ) is +0.4 at $261.70, with 1,155,941 shares traded. LMT's current last sale is 102.03% of the target price of $256.5.
Credit Suisse AG ( XIV ) is -0.02 at $36.32, with 1,051,114 shares traded.
Take-Two Interactive Software, Inc. ( TTWO ) is unchanged at $41.34, with 921,683 shares traded. As reported in the last short interest update the days to cover for TTWO is 14.469866; this calculation is based on the average trading volume of the stock.
AT&T Inc. ( T ) is unchanged at $43.20, with 904,346 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2016. The consensus EPS forecast is $0.68. As reported by Zacks, the current mean recommendation for T is in the "buy range".
Bank of America Corporation ( BAC ) is +0.01 at $14.82, with 735,810 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Twenty-First Century Fox, Inc. ( FOXA ) is unchanged at $25.58, with 650,625 shares traded. As reported by Zacks, the current mean recommendation for FOXA is in the "buy range".
Cisco Systems, Inc. ( CSCO ) is unchanged at $30.85, with 644,952 shares traded.CSCO is scheduled to provide an earnings report on 8/17/2016, for the fiscal quarter ending Jul2016. The consensus earnings per share forecast is 0.55 per share, which represents a 52 percent increase over the EPS one Year Ago
Rite Aid Corporation ( RAD ) is -0.01 at $7.47, with 618,627 shares traded. RAD's current last sale is 83% of the target price of $9.
American Airlines Group, Inc. ( AAL ) is unchanged at $34.18, with 437,748 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2016. The consensus EPS forecast is $1.54. As reported by Zacks, the current mean recommendation for AAL is in the "buy range".
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 unchanged at $34.18, with 437,748 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". Business Wire Reports: Shake Shack Announces Second Quarter 2016 Financial Results Lockheed Martin Corporation ( LMT ) is +0.4 at $261.70, with 1,155,941 shares traded.
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2016. American Airlines Group, Inc. ( AAL ) is unchanged at $34.18, with 437,748 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range".
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American Airlines Group, Inc. ( AAL ) is unchanged at $34.18, with 437,748 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". Business Wire Reports: Shake Shack Announces Second Quarter 2016 Financial Results Lockheed Martin Corporation ( LMT ) is +0.4 at $261.70, with 1,155,941 shares traded.
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American Airlines Group, Inc. ( AAL ) is unchanged at $34.18, with 437,748 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -.35 to 4,783.04.
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3da21296-a561-42cb-a6c2-1c96fd1c3d54
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7857.0
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2016-08-10 00:00:00 UTC
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Why American Airlines and United Continental Outpaced Delta With Big Gains in July
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-and-united-continental-outpaced-delta-big-gains-july-2016-08-10
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nan
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2016 has been an up-and-down year for airline stocks. The roller coaster ride continued last month, with numerous airline stocks posting big gains. Shares of American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) surged 25% and 14%, respectively, during July, according to data from S&P Global Market Intelligence .
Airlines July stock performance, data by YCharts .
By contrast, their top rival -- Delta Air Lines (NYSE: DAL) -- was limited to a 6% gain in July. Let's take a look at why American Airlines and United Continental soared last month while Delta remained grounded.
The revenue trajectory improves at American Airlines
American Airlines posted the biggest gain of any airline stock last month. Its big bounce was driven in part by signs that its revenue outlook is improving.
On July 12, American announced that it had reached new agreements with its two credit card partners that issue AAdvantage-branded rewards cards. The new agreements have significantly better financial terms . This will boost pre-tax income by about $200 million in the second half of 2016, $550 million in 2017, and $800 million in 2018, according to the company.
The growth in this ancillary revenue stream will add roughly two percentage points to American's unit revenue by 2018. This is already helping to offset lingering fare weakness.
American Airlines YTD Stock Performance, data by YCharts .
United Continental looks for smaller improvements
Compared to American Airlines stock's 25% surge last month, United Continental's 14% gain appears somewhat pedestrian.
United was also lifted by a better-than-feared Q2 unit revenue performance. PRASM declined 6.6% at United Continental last quarter, roughly in line with American Airlines' performance. Investors were relieved the PRASM drop wasn't any greater -- in April, the company had forecast PRASM would sink 6.5%-8.5% in Q2.
However, United doesn't expect much sequential improvement in Q3. The company projects that PRASM will decline 5.5%-7.5% this quarter . At the midpoint, that's roughly in line with its Q2 performance. Because of this mixed performance, United Continental stock didn't rise as much as American Airlines stock during July.
Delta loses some of its luster
Meanwhile, Delta had the most disappointing Q2 earnings report and Q3 guidance among the top three airlines. PRASM declined 4.9% year over year at Delta last quarter. That fell short of the company's April guidance, which called for PRASM to fall just 2.5%-4.5% in Q2.
Unlike its rivals, Delta missed its unit revenue guidance in Q2. Image source: The Motley Fool.
Additionally, Delta doesn't expect meaningful improvement in Q3, with PRASM for the full quarter expected to sink 4%-6% year over year. Moreover, Delta is relying on a big sequential improvement in September to meet that PRASM guidance.
To be fair, Delta still posted the best unit revenue results among the legacy carriers in Q2. But it appears to be sliding toward the middle of the pack now. Thus, it's not too surprising that Delta shares underperformed the rest of the airline industry last month with a 6% gain.
Are the gains sustainable?
American Airlines, Delta Air Lines, and United Continental are all starting to face margin pressure as they lose the benefit of huge year-over-year fuel price declines. That's made it more critical than ever for all three airlines to return to unit revenue growth.
American appears to be making the most progress in that direction, helped by its recent credit card deal. That's why American Airlines stock bounced back in July, following a terrible first-half performance. The outlook is cloudier for United and Delta, leading to smaller gains for those carriers last month.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early, in-the-know investors! To be one of them, just click here .
Adam Levine-Weinberg owns shares of United Continental Holdings and is long January 2017 $30 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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Shares of American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) surged 25% and 14%, respectively, during July, according to data from S&P Global Market Intelligence . The roller coaster ride continued last month, with numerous airline stocks posting big gains. American Airlines, Delta Air Lines, and United Continental are all starting to face margin pressure as they lose the benefit of huge year-over-year fuel price declines.
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Shares of American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) surged 25% and 14%, respectively, during July, according to data from S&P Global Market Intelligence . The revenue trajectory improves at American Airlines American Airlines posted the biggest gain of any airline stock last month. United Continental looks for smaller improvements Compared to American Airlines stock's 25% surge last month, United Continental's 14% gain appears somewhat pedestrian.
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Shares of American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) surged 25% and 14%, respectively, during July, according to data from S&P Global Market Intelligence . The revenue trajectory improves at American Airlines American Airlines posted the biggest gain of any airline stock last month. United Continental looks for smaller improvements Compared to American Airlines stock's 25% surge last month, United Continental's 14% gain appears somewhat pedestrian.
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Shares of American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) surged 25% and 14%, respectively, during July, according to data from S&P Global Market Intelligence . The revenue trajectory improves at American Airlines American Airlines posted the biggest gain of any airline stock last month. United Continental looks for smaller improvements Compared to American Airlines stock's 25% surge last month, United Continental's 14% gain appears somewhat pedestrian.
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52871560-5394-49d3-98c8-4fde200400fa
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7858.0
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2016-08-09 00:00:00 UTC
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5 Lowest P/E Stocks Today
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AAL
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https://www.nasdaq.com/articles/5-lowest-pe-stocks-today-2016-08-09
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nan
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nan
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Image source: Getty Images.
There are lots of ways to determine whether or not a stock is expensive. No single method is perfect, but a company's price-to-earnings ratio (P/E) is by far the most popular. Looking at all U.S.-based stocks valued at over $10 billion, we can get an idea of which blue-chip stocks are the cheapest right now.
As you'll see below, the market's five cheapest big-cap stocks are concentrated in just two industries -- and they're all names you should recognize. But are any of them buys at these prices?
Three airlines facing severe headwinds
Three of America's biggest airlines find themselves on this list: Delta (NYSE: DAL) , American Airlines (NASDAQ: AAL) , and the cheapest of the bunch, United Continental (NYSE: UAL) .
Data source: E*Trade.
Instead of diving into all three of these companies individually, I think it's more instructive to take a look at what's going on throughout the industry.
While airlines have benefited from low fuel costs, those gains have been offset by losses in a key metric: passenger revenue per available seat mile (PRASM). In essence, this lets investors know how efficiently an airline is running.
Create column charts .
As fellow Fool Adam Levine-Weinberg pointed out , there are lots of potential reasons for this: a stronger dollar, fuel surcharges, and -- since Adam wrote the piece -- the Brexit vote. "However, the fundamental reason for the sharp unit revenue declines is that capacity is growing much faster than demand."
So does that mean these stocks are worth buying right now? It depends on the type of investor you are. I like to buy companies that have huge competitive moats and are changing the way the world works. Right now, airlines don't fit that bill.
But if you're looking for value stocks, all three of these are worth at least a look. It will take time for these three airlines to cut capacity. The major unknown is where gas prices will sit once that occurs. If macroeconomic forces work in these companies' favor, then they could rebound in a big way.
Are we at the top of a car-buying cycle?
The other two companies with bargain-basement P/Es are American icons: Ford (NYSE: F) and General Motors (NYSE: GM) .
Data source: E*Trade.
Cyclical stocks can be a nightmare for beginning investors. Just when stocks look their cheapest, they plummet. And just when they look super-expensive, they boom. Car manufacturers' business is highly cyclical. In the U.S. and around the world, there are definite peaks and troughs in vehicle sales. At one extreme, sales will come to a grinding halt -- typically during tough economic times -- and at the other, there's such a flurry of car-buying that supply can barely keep up with demand.
Because "earnings" are the denominator of P/E, this metric can be somewhat misleading. At the bottom of the cycle -- just before the buying gets started -- earnings are usually so low that they make the stock look expensive. The exact opposite is true at the top of the cycle -- which is where many investors think we are now. In other words, a low P/E can indicate that it's a bad time to buy an automaker.
One difference between these automakers and the airlines is that Ford and GM offer large dividend yields of 5% and 5.1%, respectively.
As you can see, however, Ford's dividend looks much more sustainable at the moment.
Create column charts
Over the past 12 months, GM has used 84% of its free cash flow to pay out its dividend. There's nothing wrong with that, but taking a broader view of the company's history, it's clear that there's not that much room for growth left if business doesn't pick up significantly.
Ford, on the other hand, has seen its free cash flow explode over the past three years. Currently, it's only using 25% of its free cash flow to pay out its dividend. That high-yield dividend looks very safe.
So if you were deciding between these two companies, I would recommend Ford. If we're truly at the top of a car-buying cycle, and earnings are about to start dropping off, then it's far more likely that Ford can continue paying its dividend. That will allow long-term investors to keep collecting payouts through thick and thin, or perhaps automatically reinvest those dividends in more shares.
There's more to a stock than its P/E
There's a good reason why all five of these stocks are cheap. The airline industry is dealing with a supply glut, and investors are worried that car buying will start to slump. I think Ford is poised to emerge as the strongest bet five years from now, but only time will tell if I'm correct.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
Brian Stoffel has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Ford. The Motley Fool recommends General Motors. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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Three airlines facing severe headwinds Three of America's biggest airlines find themselves on this list: Delta (NYSE: DAL) , American Airlines (NASDAQ: AAL) , and the cheapest of the bunch, United Continental (NYSE: UAL) . While airlines have benefited from low fuel costs, those gains have been offset by losses in a key metric: passenger revenue per available seat mile (PRASM). At one extreme, sales will come to a grinding halt -- typically during tough economic times -- and at the other, there's such a flurry of car-buying that supply can barely keep up with demand.
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Three airlines facing severe headwinds Three of America's biggest airlines find themselves on this list: Delta (NYSE: DAL) , American Airlines (NASDAQ: AAL) , and the cheapest of the bunch, United Continental (NYSE: UAL) . The other two companies with bargain-basement P/Es are American icons: Ford (NYSE: F) and General Motors (NYSE: GM) . The Motley Fool recommends General Motors.
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Three airlines facing severe headwinds Three of America's biggest airlines find themselves on this list: Delta (NYSE: DAL) , American Airlines (NASDAQ: AAL) , and the cheapest of the bunch, United Continental (NYSE: UAL) . If we're truly at the top of a car-buying cycle, and earnings are about to start dropping off, then it's far more likely that Ford can continue paying its dividend. A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology.
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Three airlines facing severe headwinds Three of America's biggest airlines find themselves on this list: Delta (NYSE: DAL) , American Airlines (NASDAQ: AAL) , and the cheapest of the bunch, United Continental (NYSE: UAL) . I like to buy companies that have huge competitive moats and are changing the way the world works. At the bottom of the cycle -- just before the buying gets started -- earnings are usually so low that they make the stock look expensive.
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faf2b1cb-17d5-4f28-85f8-8311db1dad04
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7859.0
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2016-08-09 00:00:00 UTC
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Delta Air Lines (DAL): Power Outage Disrupts Operations
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-dal%3A-power-outage-disrupts-operations-2016-08-09
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nan
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Delta Air Lines Inc.DAL had to call off over 400 flights and delay several due to a power outage in Atlanta on Aug 8. The outage affected the computer systems which disrupted the company's operations worldwide. However, the company took prompt measures to keep customers updated on the matter and to assure speedy system recovery and resumption of flights. Delta's computers were functional by the end of the day, however, flight cancellations and delays continued as the company strived to bring operations back to normal.
Delta's Chief Operating Officer issued a statement apologizing for the delay and assuring customers that the company would be thoroughly investigating the matter. The company also declared that it would be issuing a $200 travel voucher to customers whose flights were delayed by over three hours or had been cancelled altogether.
Airlines with Similar Previous Incidents
Delta's computer outage is not the only incident to have impacted operations in the airline industry. Around three weeks back, Southwest Airlines Co. LUV experienced a computer router failure which disrupted operations for three days and resulted in cancellations of around 2000 flights and delays of approximately 7000 flights. Earlier in July, United Continental Holdings Inc. UAL also suffered a router issue resulting in its flights being grounded worldwide for around two hours.
Delta currently carries a Zacks Rank #5 (Strong Sell). Although it beat earning estimates in the second quarter, the company continues to face lower demand and declining average ticket price. Most other companies in the airline space such as American Airlines Group Inc. AAL and United Airlines are anticipating a decline in passenger revenues this year.
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 >>
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 AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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Most other companies in the airline space such as American Airlines Group Inc. AAL and United Airlines are anticipating a decline in passenger revenues this year. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta's computers were functional by the end of the day, however, flight cancellations and delays continued as the company strived to bring operations back to normal.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Most other companies in the airline space such as American Airlines Group Inc. AAL and United Airlines are anticipating a decline in passenger revenues this year. Around three weeks back, Southwest Airlines Co. LUV experienced a computer router failure which disrupted operations for three days and resulted in cancellations of around 2000 flights and delays of approximately 7000 flights.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Most other companies in the airline space such as American Airlines Group Inc. AAL and United Airlines are anticipating a decline in passenger revenues this year. Delta's computers were functional by the end of the day, however, flight cancellations and delays continued as the company strived to bring operations back to normal.
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Most other companies in the airline space such as American Airlines Group Inc. AAL and United Airlines are anticipating a decline in passenger revenues this year. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company also declared that it would be issuing a $200 travel voucher to customers whose flights were delayed by over three hours or had been cancelled altogether.
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6c7776d4-b35b-430e-88b4-057bc3f65195
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7860.0
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2016-08-05 00:00:00 UTC
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JetBlue Airways Corporation: JBLU Stock Is Ready to Fly High With Fleet Expansion
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AAL
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https://www.nasdaq.com/articles/jetblue-airways-corporation-jblu-stock-ready-fly-high-fleet-expansion-2016-08-05
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InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
JetBlue Airways Corporation (NASDAQ: JBLU ) reported strong second-quarter earnings. The biggest item from the JBLU earnings report was the addition of 30 Airbus planes that it will receive over the next several years. JetBlue stock is ready for liftoff with aggressive expansion in the United States and several new international routes. The airliner is also one of the top five American airlines, and it is doing everything it can to win over customers and reward shareholders.
Source: Grab Media
JetBlue announced plans to add 30 additional A321 aircraft from Airbus over the next 7 years. Deliveries will begin in 2017 for the first 15 on this amended deal.
JBLU is putting a big emphasis on improving the number of daily flights it offers in key cites. In March 2017 , JetBlue will offer more than 140 daily flights from Fort Lauderdale, one of the company's fastest growing cities and one airport where it is the number one airline. Boston, another airport where JBLU is a top airline, will get more daily flights as JetBlue pushes for 150 or more daily flights from Boston.
JBLU was also the first domestic airline to target Cuba as a tourist destination as Americans can travel there freely for the first time in more than 50 years. JetBlue announced Thursday plans for tickets as low as $99. Flights begin in August for JBLU to several Cuban destinations.
Mint Continues to Set the Tone for JBLU
JetBlue launched Mint, its premium airline offering back in 2014. The creation was seen as an upgrade to outdated business class and an opportunity to gain share by offering something unique, but continuing to put value in front of customers.
7 No-Name Tech Stocks That Will Make You Rich
Mint is the only domestic premium service to offer lay-flat seating. Other Mint perks are free drinks and curated food, hospitality trained crew and a Birchbox gift. Only 5% of transcontinental flights over 1,800 miles offer lay-flat seating.
The additional Airbus planes are expected to contribute to Mint expansion. As president and CEO, Robin Hayes said , "We have only scratched the surface on what Mint can do to disrupt the valuable coast-to-coast market." Mint has helped boost revenue per seat rates and also attracted new corporate clients. It has also helped JBLU continue its dominance in the J.D. Power awards for customer satisfaction for low-cost carriers. Aside from the business class perks, most JetBlue flights have more legroom than other airlines, offer free snacks, more premium TV channels and free in-flight WIFI.
Mint expansion is targeted for Fort Lauderdale, Las Vegas, San Diego and Seattle. With these expansion efforts, JetBlue Mint will offer 70 plus daily flights to 13 destinations. Further expansion is said to be announced later this year. JBLU believes it will end 2016 with 37 A321 (17 Mint configured), and there will be 52 A321 (31 Mint configured) by the end of 2017.
JBLU reported strong second-quarter figures last week. Operating income improved 11% in the quarter to $313 million. Revenue came in at $1.6 billion. Capacity increased 11.1% and passenger miles increased 10.3% to 11.6 billion - two important airline metrics. In addition, JetBlue's load factor was 85%.
In 2015 , JBLU reported revenue of $6.4 billion, an increase of 10.3%. Its operating margin was 19% for the full year, a huge improvement from the 8.9% in the prior fiscal year. Passengers increased 9.4% and passenger miles increased 10.3%, as the company continued its expansion.
Another area that can't be overlooked concerning JBLU stock is the company's rapid pace of paying off debt. JBLU is paying cash on the remaining six 2016 Airbus deliveries. JetBlue has over $1.5 billion in cash and an undrawn $600 million credit line. Debt stood at $1.7 billion at the end of the second quarter. The company reported debt of $1.8 billion to end then the prior year. As a result, interest expenses are down double digits in both quarters of 2016.
JetBlue stock is one of many publicly traded airline options for investors. What makes JBLU stand out in my mind is its opportunity to grow and gain market share versus its rivals with new products like Mint. Take a look at the following chart :
Airline 2015 Passengers Fleet Size Destinations Daily Flights American Airlines 201.2 million 964 339 6,500 Delta 179.4 million 801 322 5,400 Southwest 144.6 million 714 98 3,800 JetBlue 35.1 million 213 97 900 Alaska Air 31.9 million 147 112 1,000
Investors should note the huge gap between JBLU and United Continental Holdings Inc (NYSE: UAL ). From first place to third place, the difference is 57 million passengers. The gap from third to fourth is nearly 110 million passengers. JetBlue trails the other top six in number of destinations, which will change by the end of 2016, and daily flights, another area it is working to improve. The gap in fleet size should also improve as JBLU continues to invest in new airbuses.
When valuing airlines, investors have put a slight premium on JBLU shares, Southwest Airlines Co (NYSE: LUV ) and Alaska Air Group, Inc. (NYSE: ALK ) shares. All three of these stocks trade with price-to-earnings ratios above eight. The other three trade at less than 7 times current fiscal year estimates. Both Southwest and Alaska trade at more than one time annual revenue, while JetBlue ranks in the middle trading at 0.9 times annual revenue.
One More Reason U.S. Investors of Retirement Stocks Should Be Grateful
The two largest airlines, American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ) are both expected to see revenue decline during the current year. Estimates call for JBLU revenue to increase 2.8% this year and 7.5% next year.
Bottom Line on JetBlue Stock
JetBlue has grown substantially since its founding in 1998. The airline is among the top five in the United States, and it is the No.1 airline in several of its key markets. Expansion is coming in terms of fleet size, passenger seats and international offerings.
JBLU shares currently trade around $17, putting it towards the low end of its 52-week range. In 2016, shares are down 23.5%, after two impressive years prior. All of these factors make it particularly attractive compared to its peers, as JetBlue stock looks ready to take off soon.
As of this writing, Chris Katje did not hold a position in any of the aforementioned securities.
More From InvestorPlace
5 Stocks to Buy for August
The 7 Best Cheap Dividend Stocks to Buy Now
The post JetBlue Airways Corporation: JBLU Stock Is Ready to Fly High With Fleet Expansion 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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One More Reason U.S. Investors of Retirement Stocks Should Be Grateful The two largest airlines, American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ) are both expected to see revenue decline during the current year. In March 2017 , JetBlue will offer more than 140 daily flights from Fort Lauderdale, one of the company's fastest growing cities and one airport where it is the number one airline. The creation was seen as an upgrade to outdated business class and an opportunity to gain share by offering something unique, but continuing to put value in front of customers.
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One More Reason U.S. Investors of Retirement Stocks Should Be Grateful The two largest airlines, American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ) are both expected to see revenue decline during the current year. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips JetBlue Airways Corporation (NASDAQ: JBLU ) reported strong second-quarter earnings. Take a look at the following chart : Airline 2015 Passengers Fleet Size Destinations Daily Flights American Airlines 201.2 million 964 339 6,500 Delta 179.4 million 801 322 5,400 Southwest 144.6 million 714 98 3,800 JetBlue 35.1 million 213 97 900 Alaska Air 31.9 million 147 112 1,000 Investors should note the huge gap between JBLU and United Continental Holdings Inc (NYSE: UAL ).
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One More Reason U.S. Investors of Retirement Stocks Should Be Grateful The two largest airlines, American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ) are both expected to see revenue decline during the current year. Mint Continues to Set the Tone for JBLU JetBlue launched Mint, its premium airline offering back in 2014. Take a look at the following chart : Airline 2015 Passengers Fleet Size Destinations Daily Flights American Airlines 201.2 million 964 339 6,500 Delta 179.4 million 801 322 5,400 Southwest 144.6 million 714 98 3,800 JetBlue 35.1 million 213 97 900 Alaska Air 31.9 million 147 112 1,000 Investors should note the huge gap between JBLU and United Continental Holdings Inc (NYSE: UAL ).
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One More Reason U.S. Investors of Retirement Stocks Should Be Grateful The two largest airlines, American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ) are both expected to see revenue decline during the current year. With these expansion efforts, JetBlue Mint will offer 70 plus daily flights to 13 destinations. Further expansion is said to be announced later this year.
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903ddd90-5c56-4519-8ddc-8112d8b96709
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7861.0
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2016-08-05 00:00:00 UTC
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Here's Why American Airlines (AAL) Stock is Popping Today
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AAL
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https://www.nasdaq.com/articles/heres-why-american-airlines-aal-stock-popping-today-2016-08-05
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nan
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nan
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On Friday, shares of legacy airline American Airlines AAL are popping, up almost 3% in late-afternoon trading after the company announced it has reached a deal with 30,000 ground employees that, according to unions, will increase pay by an average of 22%.
However, this has added $75 million to the company's pre-tax costs in its third quarter, and $120 million in the fourth quarter.
Working with the TWU-IAM Association, the deal covers 12 organized worker's groups in maintenance, fleet service, and other ground services. In a statement , negotiators said the deal has made American's compensation comparable or even slightly ahead of positions at top rivals United Continental UAL and Delta Airlines DAL .
"Association members at American Airlines will receive the industry-best wages they deserve now," said Association Chair and Vice Chair Sito Pantoja and Harry Lombardo, respectively. "The process of bargaining joint contracts after a mega airline merger like American and US Airways is complex and time consuming. Association members will not have to wait to share appropriately in the success of their airline while their Negotiating Committees bargain hard to complete the process."
The pay raises will go into effect immediately. Union negotiators are continuing to argue for a bargaining agreement for the association, as they represent roughly a third of American's total workforce.
In their own statement , American elaborated on the pay increases, saying maintenance and related workers will receive a raise of 15%-36%, fleet service employees will get 24%, tower planners will get 31%, and weight and balance planners will get 55%.
"We are pleased to reach this innovative and unprecedented agreement," American Chief Operating Officer Robert Isom. "Today's interim agreement is unique, and thanks to the experienced leadership of Association Chair Sito Pantoja, Association Vice Chair Harry Lombardo, and two extremely motivated and capable negotiating committees, we have joined together to put the interests of our co-workers and Association members first. We will continue to work toward a single agreement that accommodates the unique needs of each of these diverse groups, and remain committed to reaching that single agreement as quickly as we can."
Interested in the other top stories of the week? Listen to Zacks Friday Finish Line to catch up on the week's financial and investment news.
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DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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On Friday, shares of legacy airline American Airlines AAL are popping, up almost 3% in late-afternoon trading after the company announced it has reached a deal with 30,000 ground employees that, according to unions, will increase pay by an average of 22%. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In a statement , negotiators said the deal has made American's compensation comparable or even slightly ahead of positions at top rivals United Continental UAL and Delta Airlines DAL .
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Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. On Friday, shares of legacy airline American Airlines AAL are popping, up almost 3% in late-afternoon trading after the company announced it has reached a deal with 30,000 ground employees that, according to unions, will increase pay by an average of 22%. "Association members at American Airlines will receive the industry-best wages they deserve now," said Association Chair and Vice Chair Sito Pantoja and Harry Lombardo, respectively.
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On Friday, shares of legacy airline American Airlines AAL are popping, up almost 3% in late-afternoon trading after the company announced it has reached a deal with 30,000 ground employees that, according to unions, will increase pay by an average of 22%. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. "Today's interim agreement is unique, and thanks to the experienced leadership of Association Chair Sito Pantoja, Association Vice Chair Harry Lombardo, and two extremely motivated and capable negotiating committees, we have joined together to put the interests of our co-workers and Association members first.
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Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. On Friday, shares of legacy airline American Airlines AAL are popping, up almost 3% in late-afternoon trading after the company announced it has reached a deal with 30,000 ground employees that, according to unions, will increase pay by an average of 22%. Association members will not have to wait to share appropriately in the success of their airline while their Negotiating Committees bargain hard to complete the process."
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b8b53e67-7e87-4a66-ac7e-71913a491556
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7862.0
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2016-08-02 00:00:00 UTC
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Why Delta Air Lines, Inc. (DAL), DISH Network Corp (DISH) and Macy’s Inc (M) Are 3 of Today’s Worst Stocks
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AAL
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https://www.nasdaq.com/articles/why-delta-air-lines-inc.-dal-dish-network-corp-dish-and-macys-inc-m-are-3-of-todays-worst
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After being trapped in a narrow trading range for nine days, the S&P 500 finally broke out of that rut … bearishly. The close of 2157.03 was down 0.64% from Monday's closing level. Even so, the index managed to fight its way back above some key technical floors, offering a glimmer of hope it may be able to avoid a major pullback from here.
Not every stock evaded the bears' grip, however. Delta Air Lines, Inc. (NYSE: DAL ), DISH Network Corp. (NASDAQ: DISH ) and Macy's Inc (NYSE: M ) all used more than their fair share of red ink on Tuesday.
Here's the deal.
Delta Air Lines, Inc. (DAL)
Take your pick of reasons Delta Air Lines shares were hit hard today … there was more than one.
5 Stocks to Sell for August
A warning from overseas rival airline Deutsche Lufthansa AG (ADR) (OTCMKTS: DLAKY ) spurred at least part of the 7.8% pullback DAL dished out on Tuesday. The German carrier said that in light of recent terror attacks in Europe, passenger volume was measurably falling. Lufthansa CEO Carsten Spohr commented :
"The terrorist attacks in Europe and also the increasing political and economic uncertainties are having a tangible impact on passenger volumes… The forward bookings, in particular for our long-haul services to Europe have declined significantly. We expect the high pricing pressure to continue."
Although to a lesser degree, that trend could also affect U.S. carriers like Delta, and United Continental Holdings Inc (NYSE: UAL ). American Airlines Group Inc (NASDAQ: AAL ) was down nearly 6%. DAL led the way lower though, thanks to another dose of bad news directly from Delta Air Lines.
That news? Delta also reported its July performance to shareholders on Tuesday. Consolidated passenger unit revenue was down 7% on a year-over-year basis . Fanning the bearish flames that singed DAL was commentary from CNBC's Dom Chu that suggested fuel costs for the airline were quietly on the rise.
DISH Network Corp. (DISH)
DISH Network is still adding radio airwave spectrum to its cache, but if today's 8% plunge from the stock is any indication, DISH shareholders aren't thrilled with the way the company is doing it.
The concerning news: To help fund at least part of the purchase of spectrum being auctioned off by the Federal government, DISH Network is issuing $2 billion worth of convertible debt. DISH is already sitting on sitting on $14.2 billion worth of long-term debt, and is already sitting on its existing spectrum with no apparent plans or effort to monetize it.
Macy's Inc (M)
Last but not least, Cleveland Research Company cautioned investors on Tuesday that July sales for department store chain Macy's saw a serious slowdown, along with peers Nordstrom, Inc. (NYSE: JWN ) and Kohl's Corporation (NYSE: KSS ). All were down for the day, but in terms of market cap lost, M shares doled out the most misery with its 7% setback.
The report underscored a related report from the Department of Commerce explaining consumers were starting to dip into their savings to continue spending. Savings-supported spending is a concern for investors in that, should the purse strings tighten, things like clothing and accessories bear the brunt of those cutbacks.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
More From InvestorPlace
10 Market Predictions for the Rest of 2016
7 Things Every Retirement Investor Should Own
The post Why Delta Air Lines, Inc. (DAL), DISH Network Corp (DISH) and Macy's Inc (M) Are 3 of Today's Worst Stocks 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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American Airlines Group Inc (NASDAQ: AAL ) was down nearly 6%. 5 Stocks to Sell for August A warning from overseas rival airline Deutsche Lufthansa AG (ADR) (OTCMKTS: DLAKY ) spurred at least part of the 7.8% pullback DAL dished out on Tuesday. Fanning the bearish flames that singed DAL was commentary from CNBC's Dom Chu that suggested fuel costs for the airline were quietly on the rise.
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American Airlines Group Inc (NASDAQ: AAL ) was down nearly 6%. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips After being trapped in a narrow trading range for nine days, the S&P 500 finally broke out of that rut … bearishly. Delta Air Lines, Inc. (NYSE: DAL ), DISH Network Corp. (NASDAQ: DISH ) and Macy's Inc (NYSE: M ) all used more than their fair share of red ink on Tuesday.
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American Airlines Group Inc (NASDAQ: AAL ) was down nearly 6%. Delta Air Lines, Inc. (NYSE: DAL ), DISH Network Corp. (NASDAQ: DISH ) and Macy's Inc (NYSE: M ) all used more than their fair share of red ink on Tuesday. DISH Network Corp. (DISH) DISH Network is still adding radio airwave spectrum to its cache, but if today's 8% plunge from the stock is any indication, DISH shareholders aren't thrilled with the way the company is doing it.
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American Airlines Group Inc (NASDAQ: AAL ) was down nearly 6%. Delta Air Lines, Inc. (NYSE: DAL ), DISH Network Corp. (NASDAQ: DISH ) and Macy's Inc (NYSE: M ) all used more than their fair share of red ink on Tuesday. The concerning news: To help fund at least part of the purchase of spectrum being auctioned off by the Federal government, DISH Network is issuing $2 billion worth of convertible debt.
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7863.0
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2016-08-02 00:00:00 UTC
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Why Trefis Revised Southwest's Price Estimate From $46 To $38 Per Share
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AAL
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https://www.nasdaq.com/articles/why-trefis-revised-southwests-price-estimate-46-38-share-2016-08-02
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nan
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Have more questions about Southwest Airlines ( LUV )? See the links below:
Southwest Drops Post 2Q'16 Results As The Airline Restricts Its Capacity Growth For 2017-2018
Southwest Q2'16 Earnings Preview: Capacity Growth To Partially Offset The Impact Of Declining PRAS M
How Will Different Capacity And Fuel Cost Forecasts Impact Southwest's 2016 EBITDA?
Rapid Capacity Additions And Lower Fuel Expense Drive Southwest's 1Q'16 Earnings
What Will Be The Impact On Southwest's EBITDA, If Crude Oil Prices Rebound To $100 Per Barrel by 2018?
Will Southwest's International Operations Contribute A Significant Portion Of Its Revenue By 2020?
What Will Be Southwest's Value In 2020?
What Factors Caused A Sharp Jump In Southwest's 2015 Operating Margin?
How Has Southwest's Revenue And EBITDA Composition Changed Over The Last Five Years?
Southwest Airlines: The Year 2015 In Review
What Is Southwest's Outlook For 2016?
What Is Southwest's Fundamental Value Based On 2016 Estimated Numbers?
What Is Southwest's Revenue And EBITDA Composition?
How Has Southwest's Revenue And EBITDA Grown Over The Last Five Years?
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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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.
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See the links below: Southwest Drops Post 2Q'16 Results As The Airline Restricts Its Capacity Growth For 2017-2018 Southwest Q2'16 Earnings Preview: Capacity Growth To Partially Offset The Impact Of Declining PRAS M How Will Different Capacity And Fuel Cost Forecasts Impact Southwest's 2016 EBITDA? 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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See the links below: Southwest Drops Post 2Q'16 Results As The Airline Restricts Its Capacity Growth For 2017-2018 Southwest Q2'16 Earnings Preview: Capacity Growth To Partially Offset The Impact Of Declining PRAS M How Will Different Capacity And Fuel Cost Forecasts Impact Southwest's 2016 EBITDA? Rapid Capacity Additions And Lower Fuel Expense Drive Southwest's 1Q'16 Earnings What Will Be The Impact On Southwest's EBITDA, If Crude Oil Prices Rebound To $100 Per Barrel by 2018? Southwest Airlines: The Year 2015 In Review What Is Southwest's Outlook For 2016?
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Will Southwest's International Operations Contribute A Significant Portion Of Its Revenue By 2020? Southwest Airlines: The Year 2015 In Review What Is Southwest's Outlook For 2016? 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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212c5553-6b09-4187-8f2c-c278cebca3af
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7864.0
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2016-08-02 00:00:00 UTC
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American Airlines Group, Inc. (AAL) Ex-Dividend Date Scheduled for August 03, 2016
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-aal-ex-dividend-date-scheduled-august-03-2016-2016-08-02
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American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on August 03, 2016. A cash dividend payment of $0.1 per share is scheduled to be paid on August 19, 2016. Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 9th quarter that AAL has paid the same dividend. At the current stock price of $35.6, the dividend yield is 1.12%.
The previous trading day's last sale of AAL was $35.6, representing a -24.4% decrease from the 52 week high of $47.09 and a 43.26% 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 $10.4. Zacks Investment Research reports AAL's forecasted earnings growth in 2016 as -40.36%, compared to an industry average of .2%.
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:
PowerShares Dynamic Leisure & Entertainment Portfolio ( PEJ )
iShares Transportation AverageETF ( IYT )
SPDR S&P Transportation ETF ( XTN )
U.S. Global Jets ETF ( JETS )
Guggenheim S&P 500 Equal Weight Industrials ETF ( RGI ).
The top-performing ETF of this group is RGI with an increase of 9.17% over the last 100 days. PEJ has the highest percent weighting of AAL at 5.74%.
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 2016 as -40.36%, compared to an industry average of .2%.
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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. American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on August 03, 2016. Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment.
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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: PowerShares Dynamic Leisure & Entertainment Portfolio ( PEJ ) iShares Transportation AverageETF ( IYT ) SPDR S&P Transportation ETF ( XTN ) U.S.
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American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on August 03, 2016. Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 9th quarter that AAL has paid the same dividend.
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1e3f8ef9-ec2b-4aa8-9dff-e8e555179238
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7865.0
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2016-08-01 00:00:00 UTC
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3 Stocks to Watch on Monday: American Airlines Group Inc (AAL), Evoke Pharma Inc (EVOK) and Microsoft Corporation (MSFT)
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AAL
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https://www.nasdaq.com/articles/3-stocks-to-watch-on-monday%3A-american-airlines-group-inc-aal-evoke-pharma-inc-evok-and
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Economic data will be at the forefront of U.S. stock markets next week, as we exit earnings season. Additionally, oil prices continue their steady decline.
Several companies are worth examining as we approach the new week, including American Airlines Group Inc (NASDAQ: AAL ), Evoke Pharma Inc (NASDAQ: EVOK ) and Microsoft Corporation (NASDAQ: MSFT ).
American Airlines Group Inc (AAL)
American Airlines is considering making a move that will reduce the number of flight delays.
As things currently stand, pilots can only work between nine and 14 hours at a time. If this limit is breached, the company requires flights to be delayed or cancelled.
10 Losers That Will Be 2017's Best Stocks to Buy
Now, American Airlines is considering rushing pilots to get to their destinations faster in order to ensure these flights take place in time. However, such a move would raise security concerns.
The airline states that safety is its number one concern, and such a move would require pilots to rush, which would increase the risk of the passengers.
AAL stock fell 2.3% Friday. Shares have declined 16.2% YTD.
Evoke Pharma Inc (EVOK)
Evoke Pharma shares slipped on the company's most recent drug trial news .
The company reported that EVK-001 - a drug for gastroparesis in women - failed to meet its goal. This occurred during the phase 3 trial of the medication.
The results were unexpected and they may be an anomaly of some sort. Evoke Pharma believes the product will be successful in the long run.
EVK-001 is a nasal spray that treats gastroparesis, which is a condition that hampers the stomach's ability to empty.
EVOK shares dipped 13.5% Friday, while sliding 45% over the last three months.
Microsoft Corporation (MSFT)
Microsoft is making changes to its newest operating system .
Windows 10 will receive an upgrade that will result in a few key changes to how the OS currently runs computers. Avoiding hacking attacks and using the digital pen more effectively are among the new features expected in the upcoming Windows 10.
Voice-activated assistant Cortana will be improved, becoming more of a real-life personal assistant with its expanded features.
Here's What to Look For on The GDX Charts
Windows 10 currently has more than 350 million monthly active users.
MSFT stock rose 0.2% last week, and 10.8% over the last month.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
More From InvestorPlace
8 Stocks to Buy If Hillary Clinton Becomes President
7 Things Every Retirement Investor Should Own
The post 3 Stocks to Watch on Monday: American Airlines Group Inc (AAL), Evoke Pharma Inc (EVOK) and Microsoft Corporation (MSFT) 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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More From InvestorPlace 8 Stocks to Buy If Hillary Clinton Becomes President 7 Things Every Retirement Investor Should Own The post 3 Stocks to Watch on Monday: American Airlines Group Inc (AAL), Evoke Pharma Inc (EVOK) and Microsoft Corporation (MSFT) appeared first on InvestorPlace . Several companies are worth examining as we approach the new week, including American Airlines Group Inc (NASDAQ: AAL ), Evoke Pharma Inc (NASDAQ: EVOK ) and Microsoft Corporation (NASDAQ: MSFT ). American Airlines Group Inc (AAL) American Airlines is considering making a move that will reduce the number of flight delays.
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Several companies are worth examining as we approach the new week, including American Airlines Group Inc (NASDAQ: AAL ), Evoke Pharma Inc (NASDAQ: EVOK ) and Microsoft Corporation (NASDAQ: MSFT ). More From InvestorPlace 8 Stocks to Buy If Hillary Clinton Becomes President 7 Things Every Retirement Investor Should Own The post 3 Stocks to Watch on Monday: American Airlines Group Inc (AAL), Evoke Pharma Inc (EVOK) and Microsoft Corporation (MSFT) appeared first on InvestorPlace . American Airlines Group Inc (AAL) American Airlines is considering making a move that will reduce the number of flight delays.
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Several companies are worth examining as we approach the new week, including American Airlines Group Inc (NASDAQ: AAL ), Evoke Pharma Inc (NASDAQ: EVOK ) and Microsoft Corporation (NASDAQ: MSFT ). More From InvestorPlace 8 Stocks to Buy If Hillary Clinton Becomes President 7 Things Every Retirement Investor Should Own The post 3 Stocks to Watch on Monday: American Airlines Group Inc (AAL), Evoke Pharma Inc (EVOK) and Microsoft Corporation (MSFT) appeared first on InvestorPlace . American Airlines Group Inc (AAL) American Airlines is considering making a move that will reduce the number of flight delays.
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Several companies are worth examining as we approach the new week, including American Airlines Group Inc (NASDAQ: AAL ), Evoke Pharma Inc (NASDAQ: EVOK ) and Microsoft Corporation (NASDAQ: MSFT ). More From InvestorPlace 8 Stocks to Buy If Hillary Clinton Becomes President 7 Things Every Retirement Investor Should Own The post 3 Stocks to Watch on Monday: American Airlines Group Inc (AAL), Evoke Pharma Inc (EVOK) and Microsoft Corporation (MSFT) appeared first on InvestorPlace . American Airlines Group Inc (AAL) American Airlines is considering making a move that will reduce the number of flight delays.
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8a10326d-cd49-4ac3-82ae-d7896472d068
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7866.0
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2016-07-30 00:00:00 UTC
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U.S. Companies Are Buying Back Too Much Stock -- Or Are They?
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AAL
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https://www.nasdaq.com/articles/us-companies-are-buying-back-too-much-stock-or-are-they-2016-07-30
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Apple Research and Development Expense and Capital Expenditures (TTM) data by YCharts .
Apple hasn't had any trouble paying for its rising buybacks along with investing in the business. The company has more than $230 billion in cash and investments on the books. And while most of that cash is trappe" outside the U.S. -- Apple would have to pay repatriation taxes to use it for buybacks -- the company has raised $85 billion in debt with an average interest rate well below 2%.
American Airlines is buying shares hand over fist
Meanwhile -- in a completely different industry -- American Airlines is buying back stock even more aggressively than Apple. Over the past four quarters, the company has spent about $5.8 billion on share buybacks: a staggering amount, considering that the company's market cap is currently less than $20 billion.
However, American Airlines has spent roughly the same amount (approximately $6 billion) on capital expenditures in the past year. Indeed, while it is buying back more stock than any other airline, it is also spending more on capex than any other airline.
American Airlines Capital Expenditures (TTM) data by YCharts .
Like Apple, American Airlines has been able to invest record amounts of capital while returning record amounts of capital to shareholders due to the low interest rate environment. American Airlines ended last quarter with total debt of $22.8 billion, up from $18.8 billion a year earlier. Despite having a much weaker balance sheet than Apple, American Airlines still pays very low interest rates -- currently about 4.4% on average.
The lesson is clear: At some point, companies may be forced to choose between investing money and returning it to shareholders. However, for now, the ready availability and low cost of debt means that companies can spend huge sums on both capex and share buybacks.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
Adam Levine-Weinberg is long January 2017 $30 calls on American Airlines Group and long January 2017 $85 calls on Apple. The Motley Fool owns shares of and recommends Apple. The Motley Fool is long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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And while most of that cash is trappe" outside the U.S. -- Apple would have to pay repatriation taxes to use it for buybacks -- the company has raised $85 billion in debt with an average interest rate well below 2%. However, American Airlines has spent roughly the same amount (approximately $6 billion) on capital expenditures in the past year. However, for now, the ready availability and low cost of debt means that companies can spend huge sums on both capex and share buybacks.
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American Airlines Capital Expenditures (TTM) data by YCharts . Like Apple, American Airlines has been able to invest record amounts of capital while returning record amounts of capital to shareholders due to the low interest rate environment. Adam Levine-Weinberg is long January 2017 $30 calls on American Airlines Group and long January 2017 $85 calls on Apple.
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American Airlines is buying shares hand over fist Meanwhile -- in a completely different industry -- American Airlines is buying back stock even more aggressively than Apple. Like Apple, American Airlines has been able to invest record amounts of capital while returning record amounts of capital to shareholders due to the low interest rate environment. The Motley Fool is long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple.
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And while most of that cash is trappe" outside the U.S. -- Apple would have to pay repatriation taxes to use it for buybacks -- the company has raised $85 billion in debt with an average interest rate well below 2%. Like Apple, American Airlines has been able to invest record amounts of capital while returning record amounts of capital to shareholders due to the low interest rate environment. The Motley Fool is long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple.
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88eba595-cbc4-4c68-995f-3f327b95dcf8
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7867.0
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2016-07-30 00:00:00 UTC
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Airlines End Their Losing Battle With the TSA
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AAL
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https://www.nasdaq.com/articles/airlines-end-their-losing-battle-tsa-2016-07-30
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nan
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nan
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Air travelers have had plenty of complaints in recent years, as airlines have shrunk seats and introduced a variety of new fees. But in the first few months of 2016, one concern began to trump all others: brutally long waits at airport security checkpoints.
TSA lines became unbearably long in early 2016. Image source: Wikimedia Commons user Josh Hallett.
At first, airlines like American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) reacted by criticizing the Transportation Security Administration (and the government more broadly). But in the past couple of months, they have realized that doing so is pointless. As a result, the airlines have pivoted toward spending money to help the TSA do its job better.
Airlines rip the TSA
Airline passenger volumes have risen rapidly in the past two years, as falling airfares have encouraged more travelers to take to the skies. Meanwhile, Congress cut back on the TSA's funding. As a result, as of early 2016, staffing was down 10% relative to 2013 despite a double-digit increase in passenger traffic.
Congress and the TSA had hoped that lots of travelers would sign up for TSA's PreCheck expedited screening program, as PreCheck security screening is less labor-intensive. However, PreCheck signups have fallen short of expectations. The result was long delays (frequently over an hour) at many security checkpoints earlier this year.
Airlines were furious. An American Airlines spokesperson called the delays unacceptable, saying that nearly 6,800 customers missed their flights due to long security lines during the week of March 14-March 20.
American Airlines was particularly angry about the long TSA lines. Image source: American Airlines.
Meanwhile, leading industry trade group Airlines for America (which counts both American Airlines and United Continental as members) stated that airline check-in processes have become more efficient than ever, but that TSA checkpoints haven't kept up. Airlines for America also told travelers to tweet about any long delays they encountered under the hashtag #iHateTheWait.
An untenable position
In response to the widespread delays and mounting public outrage this spring, Congress gave the TSA some extra money to increase staffing for the summer.
However, the legacy carriers have also realized that they need to step up, especially at their big hubs. Blaming the TSA doesn't do them much good. If customers miss flights due to outrageous security lines, it costs the airlines money (if they rebook those travelers for free) or loyalty (if they don't offer complimentary rebooking).
As a result, American Airlines, Delta Air Lines, and United Continental have opened up their checkbooks to shrink airport security lines. Fortunately for travelers, the combined efforts of the TSA and the airlines have dramatically reduced wait times in the past couple of months.
Reducing wait times -- in the short term and long term
In the short term, airlines have hired extra airport staff to assist the uniformed TSA personnel. Certain tasks -- like moving bins from the end of the security line back to the beginning -- don't actually need to be performed by TSA workers. By taking over these tasks, American, Delta, and United have enabled the TSA to open more lines than would have otherwise been possible.
The long-term fix involves making TSA checkpoints more efficient. In late May, Delta Air Lines paid for two "innovation lanes" at its Atlanta hub, featuring five separate stations for people to place their bags on the conveyor belt. It also installed an automated system to move bins back and forth.
These lanes succeeded in speeding up passenger flow through the TSA checkpoint. In recent weeks, American Airlines and United Continental have announced plans to deploy the same system for TSA checkpoints at several of their hubs.
Airlines have also encouraged more of their travelers to sign up for PreCheck -- or in Delta's case, for Clear: a private alternative that also offers expedited security screening. The airlines have even offered to pay some or all of the cost of enrolling in these programs for their elite-level frequent fliers.
It's amazing how quickly airlines have reversed course from blaming the TSA to partnering with the beleaguered government agency. But they didn't really have a choice. Their customers just want a smooth experience. It's easier for airlines to make that happen by working with the TSA -- even if it adds some costs -- than by railing against Congress and the TSA.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
Adam Levine-Weinberg owns shares of United Continental Holdings and is long January 2017 $30 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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At first, airlines like American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) reacted by criticizing the Transportation Security Administration (and the government more broadly). An American Airlines spokesperson called the delays unacceptable, saying that nearly 6,800 customers missed their flights due to long security lines during the week of March 14-March 20. An untenable position In response to the widespread delays and mounting public outrage this spring, Congress gave the TSA some extra money to increase staffing for the summer.
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At first, airlines like American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) reacted by criticizing the Transportation Security Administration (and the government more broadly). If customers miss flights due to outrageous security lines, it costs the airlines money (if they rebook those travelers for free) or loyalty (if they don't offer complimentary rebooking). Adam Levine-Weinberg owns shares of United Continental Holdings and is long January 2017 $30 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines.
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At first, airlines like American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) reacted by criticizing the Transportation Security Administration (and the government more broadly). Meanwhile, leading industry trade group Airlines for America (which counts both American Airlines and United Continental as members) stated that airline check-in processes have become more efficient than ever, but that TSA checkpoints haven't kept up. As a result, American Airlines, Delta Air Lines, and United Continental have opened up their checkbooks to shrink airport security lines.
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At first, airlines like American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) reacted by criticizing the Transportation Security Administration (and the government more broadly). As a result, American Airlines, Delta Air Lines, and United Continental have opened up their checkbooks to shrink airport security lines. The Motley Fool has no position in any of the stocks mentioned.
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9ae5db93-3e48-4b22-8038-b24fbda9a199
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7868.0
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2016-07-28 00:00:00 UTC
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Allegiant Travel (ALGT) Q2 Earnings: What's in the Cards?
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AAL
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https://www.nasdaq.com/articles/allegiant-travel-algt-q2-earnings%3A-whats-in-the-cards-2016-07-28
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nan
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nan
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Allegiant Travel CompanyALGT , the parent company of Allegiant Air, is scheduled to report second-quarter 2016 results on Jul 29.
The company has an impressive track record with respect to earnings, having outshined the Zacks Consensus Estimate in three of the last four quarters. The average earnings beat is 2.35%.
Factors at Play
Allegiant Travel did not have satisfactory operations in June owing to a number of cancellations and refund issues. For the second quarter, the company expects Total Revenue per Available Seat Mile (TRASM) to decline in the range of 9.2% to 9.6%. Allegiant Travel has been suffering due to the slump in the airline industry which followed a series of terror attacks and economic slowdown. Major airlines such as Southwest Airlines Co. LUV and American Airlines Group Inc. AAL have been struggling to boost the top line. Meanwhile, rising competition has been a pressing concern.
The company, however, posted traffic growth in the month of June. The company also chalked out a tentative pilot agreement recently which, if approved, should help maintain operational efficiency at the company.
ALLEGIANT TRAVL Price and EPS Surprise
ALLEGIANT TRAVL Price and EPS Surprise | ALLEGIANT TRAVL Quote
Earnings Whispers
Our proven model does not conclusively show that Allegiant Travel is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: Allegiant Travel has an earnings ESP of 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at $3.54.
Zacks Rank: Allegiant Travel has a Zacks Rank #5 (Strong Sell). Please note that we caution against Sell-rated stocks (#4 or 5) going into an earnings announcement,
Stocks to Consider
Here is a transport company you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter.
LATAM Airlines Group S.A. LFL has an earnings ESP of over +100% and a Zacks Rank #2. The company is scheduled to release second-quarter results on Aug 11.
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 >>
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 AIR (LUV): Free Stock Analysis Report
LATAM AIRLINES (LFL): Free Stock Analysis Report
ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report
AMER AIRLINES (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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Major airlines such as Southwest Airlines Co. LUV and American Airlines Group Inc. AAL have been struggling to boost the top line. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report LATAM AIRLINES (LFL): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company has an impressive track record with respect to earnings, having outshined the Zacks Consensus Estimate in three of the last four quarters.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report LATAM AIRLINES (LFL): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Major airlines such as Southwest Airlines Co. LUV and American Airlines Group Inc. AAL have been struggling to boost the top line. ALLEGIANT TRAVL Price and EPS Surprise ALLEGIANT TRAVL Price and EPS Surprise | ALLEGIANT TRAVL Quote Earnings Whispers Our proven model does not conclusively show that Allegiant Travel is likely to beat the Zacks Consensus Estimate this quarter.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report LATAM AIRLINES (LFL): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Major airlines such as Southwest Airlines Co. LUV and American Airlines Group Inc. AAL have been struggling to boost the top line. ALLEGIANT TRAVL Price and EPS Surprise ALLEGIANT TRAVL Price and EPS Surprise | ALLEGIANT TRAVL Quote Earnings Whispers Our proven model does not conclusively show that Allegiant Travel is likely to beat the Zacks Consensus Estimate this quarter.
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Major airlines such as Southwest Airlines Co. LUV and American Airlines Group Inc. AAL have been struggling to boost the top line. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report LATAM AIRLINES (LFL): Free Stock Analysis Report ALLEGIANT TRAVL (ALGT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Allegiant Travel CompanyALGT , the parent company of Allegiant Air, is scheduled to report second-quarter 2016 results on Jul 29.
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2d4bbe1f-4454-4eb6-843a-7e37dddd963d
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7869.0
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2016-07-26 00:00:00 UTC
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Can Q2 Earnings Save Airline ETF from Being Grounded?
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AAL
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https://www.nasdaq.com/articles/can-q2-earnings-save-airline-etf-from-being-grounded-2016-07-26
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nan
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nan
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The flight has been rough for airline stocks this year. Several issues have plagued the space. The worst among these are the upsurge in terror attacks, the outbreak of the Zika virus, global growth worries and cutthroat competition (read: France Bleeds Again: ETFs & Stocks in Focus ).
As a result, the pure-play aviation ETF U.S. Global Jets ETFJETS lost about 10% in the last three months and is off about 10.7% so far this year (as of July 21, 2016). To add to this, Brexit will likely leave a huge negative impact on the airline sector (read: UK Votes for Brexit: ETFs Winners & Losers ).
Against such a backdrop, all eyes have been fixed on airlines earnings this season. Overall, the sector put up a decent earnings show, with mixed-to-upbeat results. Let's take a look at the earnings in detail:
Inside the Earnings
Delta Air Lines Inc.DAL started off the second-quarter earnings season in the airline space with a bottom-line beat and top-line miss. Operating revenues of $10.4 billion were marginally short of the Zacks Consensus Estimate of $10.5 billion and 2.4% lower than the year-ago figure. The carrier's earnings (excluding special items) of $1.47 per share beat the Zacks Consensus Estimate by 5 cents. Earnings also improved 15.7% on a year-over-year basis thanks to low fuel costs.
United Continental Holdings ( UAL ) posted a second-quarter earnings beat on July 19 (after market close). Earnings (on an adjusted basis) of $2.61 per share beat the Zacks Consensus Estimate by 8 cents. Earnings, however, declined 21.1% on a year-over-year basis owing to lower revenues. Operating revenues of $9.4 billion, however, edged past the Zacks Consensus Estimate of $9.38 billion.
Low cost carrier Southwest Airlines Co.LUV came up with mixed results for the second quarter, missing on earnings but beating on revenues. The carrier's earnings (on an adjusted basis) of $1.19 per share fell short of the Zacks Consensus Estimate of $1.22. Earnings, however, increased 15.5% on a year-over-year basis. Revenues of $5.38 billion edged past the Zacks Consensus Estimate of $5.37 billion and increased 5.3% year over year.
Alaska Air Group Inc.ALK reported second-quarter 2016 earnings per share of $2.12, which surpassed the Zacks Consensus Estimate of $2.08 and increased 20% year over year. Quarterly revenues also increased 4% year over year and were roughly in line with the Zacks Consensus Estimate of $1.5 billion.
American Airlines Group Inc.'s ( AAL ) second-quarter adjusted earnings per share of $1.77 breezed past the Zacks Consensus Estimate by $0.12. However, quarterly earnings declined over 32% year over year. American Airlines' operating revenues of $10.36 billion declined 4.3% from the year-ago quarter. Quarterly revenues however beat the Zacks Consensus Estimate of $10.31 billion.
Should You Buy JETS?
By now, one must have realized from the indicators that the mood in the airlines industry is not as downbeat as the stock trend is showing. The main reasons for the low flying airlines stocks seem to be terror attacks and geo-political crisis (read: Political Instability Puts Turkey ETF in Focus ).
The ongoing emergency in Turkey following a failed military attack, the recent flare of terror attacks in various corners of globe, to-be-seem Brexit impact on the global economy and the volatility in currencies are likely to keep airline stocks on the edge. Now it is to be seen how long the U.S. economic revival drives these stocks and the ETF higher (read: Best Performing Currency ETFs of 1H16 ).
Nevertheless, investors having a strong stomach for risks and seeking to play the sector on decent earnings, may target it in the ETF form. Below we highlight the fund in detail:
JETS in Focus
The $43.4 million-fund holds over 30 stocks in its portfolio and is concentrated on a few individual securities, as it allocates about 70% to the top 10 holdings. American Airlines (13.97%), United Continental (12.75%), Delta Airlines (11.20%) and Southwest Airlines (10.85%) are the top four elements in the basket. Alaska Air holds the ninth position in the fund with 3.93% weight.
The product charges 60 bps in fees. The fund gained about 4.5% in the last 10 trading sessions (as of July 22, 2016) which were the peak of airlines earnings' releases.
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 >>
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 AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
US GLOBAL JETS (JETS): ETF Research Reports
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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American Airlines Group Inc.'s ( AAL ) second-quarter adjusted earnings per share of $1.77 breezed past the Zacks Consensus Estimate by $0.12. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. The worst among these are the upsurge in terror attacks, the outbreak of the Zika virus, global growth worries and cutthroat competition (read: France Bleeds Again: ETFs & Stocks in Focus ).
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American Airlines Group Inc.'s ( AAL ) second-quarter adjusted earnings per share of $1.77 breezed past the Zacks Consensus Estimate by $0.12. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. Revenues of $5.38 billion edged past the Zacks Consensus Estimate of $5.37 billion and increased 5.3% year over year.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. American Airlines Group Inc.'s ( AAL ) second-quarter adjusted earnings per share of $1.77 breezed past the Zacks Consensus Estimate by $0.12. Let's take a look at the earnings in detail: Inside the Earnings Delta Air Lines Inc.DAL started off the second-quarter earnings season in the airline space with a bottom-line beat and top-line miss.
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American Airlines Group Inc.'s ( AAL ) second-quarter adjusted earnings per share of $1.77 breezed past the Zacks Consensus Estimate by $0.12. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. Let's take a look at the earnings in detail: Inside the Earnings Delta Air Lines Inc.DAL started off the second-quarter earnings season in the airline space with a bottom-line beat and top-line miss.
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0a37cd3a-dbe9-45c7-888c-f7dba6c7f4e0
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7870.0
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2016-07-26 00:00:00 UTC
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Spirit Airlines (SAVE) Q2 Earnings: What's in the Cards?
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AAL
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https://www.nasdaq.com/articles/spirit-airlines-save-q2-earnings%3A-whats-in-the-cards-2016-07-26
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nan
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nan
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Low-cost carrier Spirit AirlinesSAVE is scheduled to report its second-quarter 2016 results, before the opening bell on Jul 29.
The Miramar, FL-based discount carrier posted an earnings beat of 4.12% in the last quarter. Moreover, it has an impressive track record with respect to earnings, having outshined the Zacks Consensus Estimate in all of the last four quarters. The average earnings beat is 3.91%.
Factors at Play
Spirit Airlines is likely to suffer from the intensifying competition in the U.S. airlines industry with declining average ticket prices and lower-than-expected demand. A number of terror attacks has resulted in delayed or cancelled travel plans. Additionally, slow economic growth is not giving top-line the much needed boost either.
While lower fuel costs would help the bottom line, the high reliance on low fuel prices for margin boost is a concern for most airlines such as Southwest Airlines Co. LUV and American Airlines Group, Inc. AAL . The fundamentals of airline companies are still lagging and have not been displaying much needed growth. As per a recent guidance issued by the company, adjusted operating margin is expected to be around 22% for the second quarter. The company posted impressive traffic results for the month of June, however, it remains to be seen if the growth in traffic can help the company deliver better-than-expected results this quarter.
SPIRIT AIRLINES Price and EPS Surprise
SPIRIT AIRLINES Price and EPS Surprise | SPIRIT AIRLINES Quote
Earnings Whispers
Our proven model does not conclusively show that Spirit Airlines is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: Spirit Airlines has an earnings ESP of +0.94%. This is because the Most Accurate estimate stands at $1.07 while the Zacks Consensus Estimate is pegged at $1.06.
Zacks Rank: Spirit Airlines has a Zacks Rank #5 (Strong Sell). Please note that we caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here is a transport company you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter.
LATAM Airlines Group S.A. LFL has an earnings ESP of over +100% and a Zacks Rank #2. The company is expected to report second-quarter results on Aug 11, after market close.
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 >>
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 AIR (LUV): Free Stock Analysis Report
LATAM AIRLINES (LFL): Free Stock Analysis Report
SPIRIT AIRLINES (SAVE): Free Stock Analysis Report
AMER AIRLINES (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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While lower fuel costs would help the bottom line, the high reliance on low fuel prices for margin boost is a concern for most airlines such as Southwest Airlines Co. LUV and American Airlines Group, Inc. AAL . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report LATAM AIRLINES (LFL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Low-cost carrier Spirit AirlinesSAVE is scheduled to report its second-quarter 2016 results, before the opening bell on Jul 29.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report LATAM AIRLINES (LFL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. While lower fuel costs would help the bottom line, the high reliance on low fuel prices for margin boost is a concern for most airlines such as Southwest Airlines Co. LUV and American Airlines Group, Inc. AAL . SPIRIT AIRLINES Price and EPS Surprise SPIRIT AIRLINES Price and EPS Surprise | SPIRIT AIRLINES Quote Earnings Whispers Our proven model does not conclusively show that Spirit Airlines is likely to beat the Zacks Consensus Estimate this quarter.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report LATAM AIRLINES (LFL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. While lower fuel costs would help the bottom line, the high reliance on low fuel prices for margin boost is a concern for most airlines such as Southwest Airlines Co. LUV and American Airlines Group, Inc. AAL . SPIRIT AIRLINES Price and EPS Surprise SPIRIT AIRLINES Price and EPS Surprise | SPIRIT AIRLINES Quote Earnings Whispers Our proven model does not conclusively show that Spirit Airlines is likely to beat the Zacks Consensus Estimate this quarter.
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While lower fuel costs would help the bottom line, the high reliance on low fuel prices for margin boost is a concern for most airlines such as Southwest Airlines Co. LUV and American Airlines Group, Inc. AAL . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report LATAM AIRLINES (LFL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. SPIRIT AIRLINES Price and EPS Surprise SPIRIT AIRLINES Price and EPS Surprise | SPIRIT AIRLINES Quote Earnings Whispers Our proven model does not conclusively show that Spirit Airlines is likely to beat the Zacks Consensus Estimate this quarter.
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b7ab85da-b322-498c-b7a0-574287c99178
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7871.0
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2016-07-25 00:00:00 UTC
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American Airlines Bites the Bullet and Slashes International Growth Plans
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AAL
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https://www.nasdaq.com/articles/american-airlines-bites-bullet-and-slashes-international-growth-plans-2016-07-25
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nan
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nan
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Entering 2016, American Airlines (NASDAQ: AAL) had aggressive plans to grow outside the U.S., particularly in the transpacific market. As of January, the company planned to increase its international capacity 6% year over year in 2016. However, overcapacity and weak demand in numerous international markets has forced it to trim its growth plans again and again.
Moreover, there's no sign that supply demand trends will change soon for long-haul international routes. As a result, American Airlines is finally reducing its near-term international growth plans. On Friday, it announced that it will defer the delivery of 22 Airbus (NASDAQOTH: EADSY) A350s.
American Airlines has dramatically reduced its international growth plans. Image source: American Airlines.
This move has set off a new wave of worries about widebody aircraft demand, impacting Airbus -- and by extension, Boeing (NYSE: BA) . Yet while the deferral clearly confirms that the market can't support much long-haul growth from a legacy carrier, the long-term implications for Airbus and Boeing are far less dire.
International results remain weak
American Airlines, like its legacy carrier peers, faces weak unit revenue trends across much of its international route network. In the transatlantic market, passenger revenue per available seat mile (PRASM) fell 5.9% in Q2 on 1.2% capacity growth. In Latin America, PRASM slumped 10.2% last quarter, even as American cut capacity by 4.3% year over year.
Finally, American has been adding numerous transpacific routes lately , seeing that region as a promising long-term growth opportunity. However, in the short term, that market has been anything but attractive. American's transpacific PRASM declined 14.5% last quarter on a 21.3% jump in capacity.
If anything, the transatlantic market -- the best of the bunch for American Airlines recently -- is at risk of an even bigger downturn. Industry capacity growth is high, driven in part by the expansion of low-cost carriers like Norwegian. Furthermore, Brexit-driven concerns may negatively impact transatlantic travel demand.
American Airlines cuts growth plans
Thus, American Airlines has very few attractive long-haul growth opportunities right now. It appears to recognize that fact, as it has cut its international capacity growth plan from 6% at the beginning of the year to just 2% now.
However, entering 2016, American Airlines' fleet plan was designed to provide ample long-haul capacity growth for the next few years. The carrier planned to add four Airbus A350s to its fleet in 2017 and another 10 in 2018. It also had 13 Boeing 787s scheduled for delivery in 2017 and eight more scheduled to arrive in 2018.
Thus, American planned to add 35 new widebodies to its fleet in the 2017-2018 period. Yet it had as few as six widebodies scheduled to retire during that time frame.
In May, American revealed plans to accelerate the retirement of eight Boeing 767s and nine Airbus A330s to 2017 and 2018. This reduced its growth commitments significantly. Last week's A350 deferral pushed out 12 scheduled deliveries from the 2017-2018 period to 2020 and beyond.
American Airlines has delayed its A350 deliveries by an average of 26 months. Image source: Airbus.
The net result is that American Airlines is now scheduled to have no growth in its widebody fleet count from the end of 2016 to the end of 2018. (It will have a modest capacity increase from a higher average seating density, though.) Of course, if conditions improve, the company could return to growth by keeping some of its older aircraft a little longer.
Airbus and Boeing should look elsewhere for growth
Six months ago, American Airlines planned to grow its international capacity at a mid-high single-digit rate over the next several years. The company now realizes that doing so would be a money-losing proposition.
It's not all that surprising that a U.S. legacy carrier can't profitably support that kind of growth. This is why the deferral is not as bad for Airbus and Boeing as many pundits suppose. Low-cost carriers and airlines in key developing nations -- most notably China and India, where air travel is exploding -- will be the key drivers of demand growth in the future.
Meanwhile, even with much more modest annual fleet growth of 1% to 2%, American Airlines and its U.S. legacy peers will probably need to order hundreds more widebodies in the next 10 to 15 years. Most of those planes are needed to replace aircraft ordered during the late 1990s airline boom.
With American Airlines' capitulation on growth, the U.S. legacy carriers all seem determined to better manage capacity on international routes. But as long as air travel demand in places like China and India continues to grow at a healthy clip, Airbus and Boeing will be fine.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
Adam Levine-Weinberg owns shares of Boeing and is long January 2017 $30 calls on American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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Entering 2016, American Airlines (NASDAQ: AAL) had aggressive plans to grow outside the U.S., particularly in the transpacific market. Yet while the deferral clearly confirms that the market can't support much long-haul growth from a legacy carrier, the long-term implications for Airbus and Boeing are far less dire. Airbus and Boeing should look elsewhere for growth Six months ago, American Airlines planned to grow its international capacity at a mid-high single-digit rate over the next several years.
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Entering 2016, American Airlines (NASDAQ: AAL) had aggressive plans to grow outside the U.S., particularly in the transpacific market. Yet while the deferral clearly confirms that the market can't support much long-haul growth from a legacy carrier, the long-term implications for Airbus and Boeing are far less dire. International results remain weak American Airlines, like its legacy carrier peers, faces weak unit revenue trends across much of its international route network.
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Entering 2016, American Airlines (NASDAQ: AAL) had aggressive plans to grow outside the U.S., particularly in the transpacific market. American Airlines cuts growth plans Thus, American Airlines has very few attractive long-haul growth opportunities right now. However, entering 2016, American Airlines' fleet plan was designed to provide ample long-haul capacity growth for the next few years.
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Entering 2016, American Airlines (NASDAQ: AAL) had aggressive plans to grow outside the U.S., particularly in the transpacific market. As of January, the company planned to increase its international capacity 6% year over year in 2016. American Airlines cuts growth plans Thus, American Airlines has very few attractive long-haul growth opportunities right now.
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a34d9aa8-511f-47fe-a8f0-0f63f30bf445
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7872.0
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2016-07-25 00:00:00 UTC
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Company News for July 25, 2016
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AAL
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https://www.nasdaq.com/articles/company-news-for-july-25-2016-2016-07-25
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nan
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nan
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• American Airlines Group Inc's ( AAL ) shares rose 4% after announcing second quarter adjusted earnings of $1.77 per share, outpacing the Zacks Consensus Estimate by 12 cents
• Shares Whirlpool Corp. ( WHR ) increased 2.7% after reporting second quarter adjusted earnings of $3.50 per share, higher than the Zacks Consensus Estimate of $3.35
• Visa Inc's ( V ) shares advanced 1.4% after posting fiscal third quarter earnings of $0.69 per share, beating the Zacks Consensus Estimate by a couple of cents
• Shares of Stanley Black & Decker, Inc. ( SWK ) jumped 4.8% after declaring second quarter adjusted earnings of $1.84 per share, surpassing the Zacks Consensus Estimate of $1.71
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
AMER AIRLINES (AAL): Free Stock Analysis Report
WHIRLPOOL CORP (WHR): Free Stock Analysis Report
VISA INC-A (V): Free Stock Analysis Report
STANLEY B&D INC (SWK): 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 Group Inc's ( AAL ) shares rose 4% after announcing second quarter adjusted earnings of $1.77 per share, outpacing the Zacks Consensus Estimate by 12 cents • Shares Whirlpool Corp. ( WHR ) increased 2.7% after reporting second quarter adjusted earnings of $3.50 per share, higher than the Zacks Consensus Estimate of $3.35 • Visa Inc's ( V ) shares advanced 1.4% after posting fiscal third quarter earnings of $0.69 per share, beating the Zacks Consensus Estimate by a couple of cents • Shares of Stanley Black & Decker, Inc. ( SWK ) jumped 4.8% after declaring second quarter adjusted earnings of $1.84 per share, surpassing the Zacks Consensus Estimate of $1.71 Want the latest recommendations from Zacks Investment Research? Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report WHIRLPOOL CORP (WHR): Free Stock Analysis Report VISA INC-A (V): Free Stock Analysis Report STANLEY B&D INC (SWK): 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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• American Airlines Group Inc's ( AAL ) shares rose 4% after announcing second quarter adjusted earnings of $1.77 per share, outpacing the Zacks Consensus Estimate by 12 cents • Shares Whirlpool Corp. ( WHR ) increased 2.7% after reporting second quarter adjusted earnings of $3.50 per share, higher than the Zacks Consensus Estimate of $3.35 • Visa Inc's ( V ) shares advanced 1.4% after posting fiscal third quarter earnings of $0.69 per share, beating the Zacks Consensus Estimate by a couple of cents • Shares of Stanley Black & Decker, Inc. ( SWK ) jumped 4.8% after declaring second quarter adjusted earnings of $1.84 per share, surpassing the Zacks Consensus Estimate of $1.71 Want the latest recommendations from Zacks Investment Research? Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report WHIRLPOOL CORP (WHR): Free Stock Analysis Report VISA INC-A (V): Free Stock Analysis Report STANLEY B&D INC (SWK): 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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• American Airlines Group Inc's ( AAL ) shares rose 4% after announcing second quarter adjusted earnings of $1.77 per share, outpacing the Zacks Consensus Estimate by 12 cents • Shares Whirlpool Corp. ( WHR ) increased 2.7% after reporting second quarter adjusted earnings of $3.50 per share, higher than the Zacks Consensus Estimate of $3.35 • Visa Inc's ( V ) shares advanced 1.4% after posting fiscal third quarter earnings of $0.69 per share, beating the Zacks Consensus Estimate by a couple of cents • Shares of Stanley Black & Decker, Inc. ( SWK ) jumped 4.8% after declaring second quarter adjusted earnings of $1.84 per share, surpassing the Zacks Consensus Estimate of $1.71 Want the latest recommendations from Zacks Investment Research? Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report WHIRLPOOL CORP (WHR): Free Stock Analysis Report VISA INC-A (V): Free Stock Analysis Report STANLEY B&D INC (SWK): 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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• American Airlines Group Inc's ( AAL ) shares rose 4% after announcing second quarter adjusted earnings of $1.77 per share, outpacing the Zacks Consensus Estimate by 12 cents • Shares Whirlpool Corp. ( WHR ) increased 2.7% after reporting second quarter adjusted earnings of $3.50 per share, higher than the Zacks Consensus Estimate of $3.35 • Visa Inc's ( V ) shares advanced 1.4% after posting fiscal third quarter earnings of $0.69 per share, beating the Zacks Consensus Estimate by a couple of cents • Shares of Stanley Black & Decker, Inc. ( SWK ) jumped 4.8% after declaring second quarter adjusted earnings of $1.84 per share, surpassing the Zacks Consensus Estimate of $1.71 Want the latest recommendations from Zacks Investment Research? Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report WHIRLPOOL CORP (WHR): Free Stock Analysis Report VISA INC-A (V): Free Stock Analysis Report STANLEY B&D INC (SWK): Free Stock Analysis Report To read this article on Zacks.com click here. Today, you can download 7 Best Stocks for the Next 30 Days.
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b078bead-0db6-47fb-a86e-e1af68e3081c
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7873.0
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2016-07-25 00:00:00 UTC
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11.0% of DLN Holdings Seeing Recent Insider Buys
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AAL
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https://www.nasdaq.com/articles/110-dln-holdings-seeing-recent-insider-buys-2016-07-25
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nan
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nan
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A look at the weighted underlying holdings of the WisdomTree LargeCap Dividend Fund ( DLN ) shows an impressive 11.0% of holdings on a weighted basis have experienced insider buying within the past six months.
American Airlines Group Inc (Symbol: AAL), which makes up 0.05% of the WisdomTree LargeCap Dividend Fund ( DLN ), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $995,568 worth of AAL, making it the #258 largest holding. The table below details the recent insider buying activity observed at AAL:
AAL - last trade: $36.36 - Recent Insider Buys:
10 ETFs With Stocks That Insiders Are Buying »
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 (Symbol: AAL), which makes up 0.05% of the WisdomTree LargeCap Dividend Fund ( DLN ), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at AAL: AAL - last trade: $36.36 - Recent Insider Buys: 10 ETFs With Stocks That Insiders Are Buying » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The ETF holds a total of $995,568 worth of AAL, making it the #258 largest holding.
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American Airlines Group Inc (Symbol: AAL), which makes up 0.05% of the WisdomTree LargeCap Dividend Fund ( DLN ), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at AAL: AAL - last trade: $36.36 - Recent Insider Buys: 10 ETFs With Stocks That Insiders Are Buying » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The ETF holds a total of $995,568 worth of AAL, making it the #258 largest holding.
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American Airlines Group Inc (Symbol: AAL), which makes up 0.05% of the WisdomTree LargeCap Dividend Fund ( DLN ), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at AAL: AAL - last trade: $36.36 - Recent Insider Buys: 10 ETFs With Stocks That Insiders Are Buying » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The ETF holds a total of $995,568 worth of AAL, making it the #258 largest holding.
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The table below details the recent insider buying activity observed at AAL: AAL - last trade: $36.36 - Recent Insider Buys: 10 ETFs With Stocks That Insiders Are Buying » 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 (Symbol: AAL), which makes up 0.05% of the WisdomTree LargeCap Dividend Fund ( DLN ), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $995,568 worth of AAL, making it the #258 largest holding.
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9e7bf7ee-2aa6-4f80-a09c-3b2790db4aa7
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7874.0
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2016-07-24 00:00:00 UTC
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Delta Air Lines Wins the Tokyo Haneda Airport Sweepstakes
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-wins-tokyo-haneda-airport-sweepstakes-2016-07-24
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nan
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nan
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Under the new United States-Japan air-service agreement, U.S. carriers will be allowed to operate six daily flights at Tokyo's popular Haneda Airport, up from four previously. Five of those six flights will receive valuable daytime arrival and departure slots.
For the past several months, American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and Hawaiian Holdings (NASDAQ: HA) have been sparring over these coveted slots.
Airlines are desperate to add daytime flights at Tokyo's Haneda Airport. Image source: American Airlines.
Based on the Department of Transportation's preliminary decision issued earlier this week, it looks like Delta Air Lines is the winner. It will be the only U.S. airline granted two daytime flights to Haneda Airport.
Airlines get to keep their existing routes
Since 2010, there have been numerous changes to the roster of U.S.-Tokyo Haneda flights, after many of the initial routes were unprofitable due to inconvenient flight times. Today, each of the four U.S. airlines serving Japan holds one Haneda route authority. American Airlines and Delta Air Lines both fly to Los Angeles, United Continental flies to San Francisco, and Hawaiian Airlines serves Honolulu.
Most of the airlines -- all except Delta -- wanted the DOT to let them move their existing flights to the new daytime slots without having to justify them from scratch. The DOT refused, finding that the availability of daytime slots necessitated a full re-examination of the Haneda flight allocation.
However, in the end, the DOT decided to let American, Delta, United, and Hawaiian move their four existing flights to the new daytime slots.
This was a good outcome for Hawaiian Airlines in particular. It was the only airline that was interested in the one remaining nighttime slot. As a result, in May, the DOT approved its plans to fly four times a week to Honolulu and three times a week to Kona during the overnight hours.
Hawaiian Airlines will fly twice a day from Haneda to Hawaii as of this fall. Image source: Wikimedia Commons .
Other airlines argued that Hawaiian Airlines shouldn't also get a daytime slot, since it could clearly be successful at night. However, Hawaiian very much wanted to keep its existing daily Honolulu-Haneda service while shifting it a few hours earlier. The DOT's decision this week will allow Hawaiian to do so, giving it a third of the available Haneda flight frequencies.
Delta gets the last remaining route authority
With the DOT allowing all four airlines to shift their existing nighttime flights to new daytime slots later this year, there was only one slot left to allocate. American Airlines proposed a route to Dallas-Fort Worth. Delta proposed routes to Minneapolis-St. Paul and Atlanta (in that priority order). Finally, United proposed a route to Newark.
The DOT has tentatively selected Delta's Minneapolis-St. Paul route. Of the four airports under consideration, Minneapolis-St. Paul is the closest to Tokyo and can therefore provide the most convenient connections, particularly for travelers coming from the Northeast or Midwest.
This decision is sure to infuriate American Airlines and United Airlines. In the past few years, Delta has canceled two Haneda routes: Detroit-Haneda and Seattle-Haneda. Delta believes that its new Minneapolis-St. Paul route will succeed because it will operate during the daytime, but American and United don't think their rival deserves a third chance.
Delta will be able to serve Haneda from Los Angeles and Minneapolis-St. Paul. Image source: The Motley Fool.
However, American Airlines and United Continental have joint-venture partners in Japan. As a result, American can sell seats on Japan Airlines' two daily Haneda-U.S. flights, and United can sell seats on ANA's four daily (as of this fall) Haneda-U.S. flights. Regulators believe that giving Delta two of the five daytime slots will help level the playing field.
Delta is on probation
The DOT plans to watch Delta's new route from Minneapolis-St. Paul closely, due to the carrier's shaky history at Haneda Airport. If Delta deviates significantly from its proposed service on that route, its route authority will be terminated and handed over to American Airlines to use for flights to Dallas-Fort Worth.
Delta will probably do just fine with its new route, though. While demand for nonstop flights between Minneapolis-St. Paul and Tokyo is nothing to write home about, Delta will be able to offer the most convenient one-stop service to Haneda Airport from many U.S. cities. This should help it earn a revenue premium -- which is more important than ever, as Delta works to get unit revenue growing again.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
Adam Levine-Weinberg owns shares of Hawaiian Holdings and United Continental Holdings and is long January 2017 $30 calls on American Airlines Group, short October 2016 $50 calls on Hawaiian Holdings, and long January 2017 $40 calls on Delta Air Lines. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 the past several months, American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and Hawaiian Holdings (NASDAQ: HA) have been sparring over these coveted slots. Under the new United States-Japan air-service agreement, U.S. carriers will be allowed to operate six daily flights at Tokyo's popular Haneda Airport, up from four previously. Delta believes that its new Minneapolis-St. Paul route will succeed because it will operate during the daytime, but American and United don't think their rival deserves a third chance.
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For the past several months, American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and Hawaiian Holdings (NASDAQ: HA) have been sparring over these coveted slots. American Airlines and Delta Air Lines both fly to Los Angeles, United Continental flies to San Francisco, and Hawaiian Airlines serves Honolulu. Adam Levine-Weinberg owns shares of Hawaiian Holdings and United Continental Holdings and is long January 2017 $30 calls on American Airlines Group, short October 2016 $50 calls on Hawaiian Holdings, and long January 2017 $40 calls on Delta Air Lines.
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For the past several months, American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and Hawaiian Holdings (NASDAQ: HA) have been sparring over these coveted slots. American Airlines and Delta Air Lines both fly to Los Angeles, United Continental flies to San Francisco, and Hawaiian Airlines serves Honolulu. Delta gets the last remaining route authority With the DOT allowing all four airlines to shift their existing nighttime flights to new daytime slots later this year, there was only one slot left to allocate.
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For the past several months, American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , United Continental (NYSE: UAL) , and Hawaiian Holdings (NASDAQ: HA) have been sparring over these coveted slots. However, in the end, the DOT decided to let American, Delta, United, and Hawaiian move their four existing flights to the new daytime slots. Delta gets the last remaining route authority With the DOT allowing all four airlines to shift their existing nighttime flights to new daytime slots later this year, there was only one slot left to allocate.
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873c1de4-31bd-4471-a196-ac292587569f
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7875.0
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2016-07-22 00:00:00 UTC
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Stock Market News for July 22, 2016
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AAL
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https://www.nasdaq.com/articles/stock-market-news-for-july-22-2016-2016-07-22
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nan
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nan
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Benchmarks closed lower on Thursday, dragged down by declines in transportation and energy stocks. Airlines were the worst performers in the S&P 500, led by decline in Southwest Airlines' shares after the company warned about revenue slow down. On the other hand, a glut of gasoline continued to weigh on oil prices , which adversely affected energy companies. The S&P 500 retreated from Wednesday's record close, while the Dow also snapped its seven straight session all-time record winning streak to end in the red. The blue-chip index took a beating as Intel's shares tanked on slower revenue growth.
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) declined 0.4% to close at 18,517.23. The S&P 500 also dropped 0.4% to close at 2,165.17. The tech-laden Nasdaq Composite Index closed at 5,073.90, decreasing 0.3%. The fear-gauge CBOE Volatility Index (VIX) soared 7.1% to settle at 12.60. A total of around 3.4 billion shares were traded on NYSE on Thursday. Decliners outpaced advancing stocks on the NYSE. For 56% stocks that declined, 41% advanced.
Southwest Airlines Co.'s ( LUV ) second quarter earnings per share of $1.19 fell short of the Zacks Consensus Estimate of $1.22. However, revenues of $5,384 million edged past the Zacks Consensus Estimate of $5,372 million. But, Chief Executive Gary Kelly warned that a challenging fare environment might have a negative on revenues in the current quarter. During the said quarter, revenues are expected to fall 3% to 4%. Shares of Southwest Airlines plunged 11.2%.
Other airline stocks including Delta Air Lines, Inc. ( DAL ), United Continental Holdings Inc ( UAL ) and American Airlines Group Inc ( AAL ) to name a few, dropped 4.2%, 3.4% and 2.7%, respectively. The broader Industrials Select Sector SPDR (XLI) decreased 1% and was the biggest loser among S&P 500 sectors.
Oil prices fell yesterday on rising gasoline stockpiles. According to government data, gasoline inventory grew by 911,000 barrels last week. Such a glut of gasoline came in the middle of high demand season. WTI crude and Brent crude decreased 2.2% and 2.1% to $44.75 per barrel and $46.20 a barrel, respectively.
Fall in oil prices weighed on energy shares. Companies such as Exxon Mobil Corporation ( XOM ), Chevron Corporation ( CVX ), Kinder Morgan, Inc. ( KMI ) and Halliburton Company ( HAL ) declined 0.1%, 0.2%, 5.2% and 1.7%, respectively. The Energy Select Sector SPDR (XLE) dropped 1%, the second highest among the S&P 500 sectors.
Among major earnings reports, Intel Corporation ( INTC ) posted second quarter earnings per share of $0.59 per share, surpassing the Zacks Consensus Estimate of $0.52. Whereas, revenues of $13.53 billion came in-line with the Zacks Consensus Estimate.
But, revenues in its key data center group of $4 billion turned out to be lower than the expected figure of $4.16 billion, which eventually dragged the shares of the semiconductor giant down almost 4%. Decline in Intel's shares weighed on the Dow.
On the economic front, sales of existing homes rose 1.1% in June from May to a seasonally adjusted rate of 5.57 million, its highest level since Feb 2007, according to the National Association of Realtors. Such strong sales of previously owned homes came in contrast to the consensus estimate of sales falling to 5.46 million from May's figure of 5.51 million. Additionally, shares of the first time buyers touched 33% in June, the highest level since July 2012.
Separately, initial claims for the week ending July 16 came in at 253,000, a decrease of 1,000 from the prior week. Jobless claims were also less than the consensus estimate of 260,000. Its 4-week moving average was 257,750 that fell from previous week's unrevised average of 259,000.
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 AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
KINDER MORGAN (KMI): Free Stock Analysis Report
HALLIBURTON CO (HAL): Free Stock Analysis Report
INTEL CORP (INTC): 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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Other airline stocks including Delta Air Lines, Inc. ( DAL ), United Continental Holdings Inc ( UAL ) and American Airlines Group Inc ( AAL ) to name a few, dropped 4.2%, 3.4% and 2.7%, respectively. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report KINDER MORGAN (KMI): Free Stock Analysis Report HALLIBURTON CO (HAL): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. On the other hand, a glut of gasoline continued to weigh on oil prices , which adversely affected energy companies.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report KINDER MORGAN (KMI): Free Stock Analysis Report HALLIBURTON CO (HAL): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. Other airline stocks including Delta Air Lines, Inc. ( DAL ), United Continental Holdings Inc ( UAL ) and American Airlines Group Inc ( AAL ) to name a few, dropped 4.2%, 3.4% and 2.7%, respectively. Companies such as Exxon Mobil Corporation ( XOM ), Chevron Corporation ( CVX ), Kinder Morgan, Inc. ( KMI ) and Halliburton Company ( HAL ) declined 0.1%, 0.2%, 5.2% and 1.7%, respectively.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report KINDER MORGAN (KMI): Free Stock Analysis Report HALLIBURTON CO (HAL): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. Other airline stocks including Delta Air Lines, Inc. ( DAL ), United Continental Holdings Inc ( UAL ) and American Airlines Group Inc ( AAL ) to name a few, dropped 4.2%, 3.4% and 2.7%, respectively. Southwest Airlines Co.'s ( LUV ) second quarter earnings per share of $1.19 fell short of the Zacks Consensus Estimate of $1.22.
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Other airline stocks including Delta Air Lines, Inc. ( DAL ), United Continental Holdings Inc ( UAL ) and American Airlines Group Inc ( AAL ) to name a few, dropped 4.2%, 3.4% and 2.7%, respectively. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report EXXON MOBIL CRP (XOM): Free Stock Analysis Report CHEVRON CORP (CVX): Free Stock Analysis Report KINDER MORGAN (KMI): Free Stock Analysis Report HALLIBURTON CO (HAL): Free Stock Analysis Report INTEL CORP (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. The Dow Jones Industrial Average (DJI) declined 0.4% to close at 18,517.23.
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4ed829c4-e091-4904-a4b1-4fdc4ae70114
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7876.0
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2016-07-22 00:00:00 UTC
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American Airlines Group (AAL) Beats on Q2 Earnings
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-aal-beats-on-q2-earnings-2016-07-22
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nan
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nan
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American Airlines GroupAAL came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. The Fort Worth, Texas based company serves customers with more than 6,700 daily flights in more than 50 nations across the globe.
American Airlines Group has a healthy track record with respect to earnings. The company has delivered positive earnings surprises in each of the last four quarters, with an average beat of 2.74%.
Zacks Rank : Currently, American Airlines Group has a Zacks Rank #5 (Strong Sell), but that could change following the company's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings : American Airlines Group beat on earnings. Adjusted earnings per share came in at $1.77, easily beating the Zacks Consensus Estimate of $1.65. Quarterly earnings declined over 32% on a year over year basis.
AMER AIRLINES Price and EPS Surprise
AMER AIRLINES Price and EPS Surprise | AMER AIRLINES Quote
Revenue : Revenues of $10.36 billion were 4.3% below the year-ago figure. Quarterly revenues beat the Zacks Consensus Estimate of $10.31 billion.
Key Stats : American Airlines Group's results in the quarter benefited from low fuel costs. This is because fuel costs account for a major chunk of an airline's operating expenses. During the quarter, the company returned more than $1.7 billion to its shareholders through the payment of $58 million in dividends and buyback of shares worth of $1.7 billion. Furthermore, the carrier also declared a dividend of $0.10 per share. The dividend will be paid on Aug 19, 2016, to the shareholders on Aug 5. We are impressed by the company's efforts to reward shareholders through stock repurchases and dividend payments.
Stock Price : The year-over-year decline in earnings and revenues irked investors. Consequently, shares of the company were down in pre-market trading at the time of writing.
Check back later for our full write up on this American Airlines Group earnings report later!
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 >>
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
AMER AIRLINES (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 came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The Fort Worth, Texas based company serves customers with more than 6,700 daily flights in more than 50 nations across the globe.
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American Airlines GroupAAL came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. AMER AIRLINES Price and EPS Surprise AMER AIRLINES Price and EPS Surprise | AMER AIRLINES Quote Revenue : Revenues of $10.36 billion were 4.3% below the year-ago figure.
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American Airlines GroupAAL came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank : Currently, American Airlines Group has a Zacks Rank #5 (Strong Sell), but that could change following the company's earnings report which was just released.
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American Airlines GroupAAL came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. During the quarter, the company returned more than $1.7 billion to its shareholders through the payment of $58 million in dividends and buyback of shares worth of $1.7 billion.
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582d4883-9984-4109-9ee8-f2f4ef99a5d2
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7877.0
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2016-07-22 00:00:00 UTC
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American Airlines (AAL) Q2 Earnings, Sales Beat; Down Y/Y
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-q2-earnings-sales-beat-down-y-y-2016-07-22
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nan
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nan
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American Airlines Group Inc.AAL reported better-than-expected earnings in the second quarter of 2016. The company posted adjusted earnings per share of $1.77, beating the Zacks Consensus Estimate by 12 cents. However, quarterly earnings declined over 32% on a year-over-year basis.
American Airlines Group Inc. (AAL) Street Actual & Estimate EPS - Last 5 Quarters | FindTheCompany
American Airlines reported operating revenues of $10.36 billion in the second quarter, representing a 4.3% decrease from the figure reported a year ago. Quarterly revenues however beat the Zacks Consensus Estimate of $10.31 billion.
Consolidated passenger revenue per available seat mile (PRASM) declined 6.3% to 12.71 cents in the reported quarter. Consolidated yield fell 5.3% to 15.42 cents. Traffic grew 0.9% on a 1.9% capacity expansion. Consolidated load factor (% of seats filled by passengers) also declined as traffic growth was outpaced by capacity expansion. Load factor deteriorated to 82.5% from the comparable year-ago figure of 83.3%.
American Airlines' results in the second quarter of 2016 benefited from low fuel costs. This is because fuel accounts for a major chunk of an airline's operating expenses. Total operating expenses declined significantly to $8.6 billion on the back of a 24.9% reduction in fuel costs. We note that the carrier does not hedge fuel costs.
During the second quarter, the company returned more than $1.7 billion to its shareholders through the payment of $58 million in dividends and buyback of shares worth of $1.7 billion. Furthermore, the carrier declared a dividend of $0.10 per share which will be paid on Aug 19, 2016, to the shareholders on record as of Aug 5. We are impressed with the company's efforts to reward shareholders through stock repurchases and dividend payments.
American Airlines is constantly looking to introduce new aircraft and retire old ones from its fleet. Keeping with its aim to modernize its fleet, the carrier took delivery of 14 new mainline aircraft and 14 regional ones during the reported quarter, while retiring 31 aircraft. The carrier invested $1.2 billion toward new aircraft during the quarter.
AMER AIRLINES Price, Consensus and EPS Surprise
AMER AIRLINES Price, Consensus and EPS Surprise | AMER AIRLINES Quote
Zacks Rank & Key Picks
Currently, American Airlines Group has a Zacks Rank #5 (Strong Sell). Better-ranked stocks in the broader transportation space are Cathay Pacific Airways Limited CPCAY , ANA Holdings Inc. ALNPY and LATAM Airlines Group S.A. LFL . Cathay Pacific sports a Zacks Rank #1 (Strong Buy) while ANA Holdings and LATAM Airlines carry a Zacks Rank #2 (Buy).
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 >>
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
LATAM AIRLINES (LFL): Free Stock Analysis Report
CATHAY PAC AIR (CPCAY): Free Stock Analysis Report
ANA HOLDINGS (ALNPY): Free Stock Analysis Report
AMER AIRLINES (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 Group Inc.AAL reported better-than-expected earnings in the second quarter of 2016. American Airlines Group Inc. (AAL) Street Actual & Estimate EPS - Last 5 Quarters | FindTheCompany American Airlines reported operating revenues of $10.36 billion in the second quarter, representing a 4.3% decrease from the figure reported a year ago. Click to get this free report LATAM AIRLINES (LFL): Free Stock Analysis Report CATHAY PAC AIR (CPCAY): Free Stock Analysis Report ANA HOLDINGS (ALNPY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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American Airlines Group Inc. (AAL) Street Actual & Estimate EPS - Last 5 Quarters | FindTheCompany American Airlines reported operating revenues of $10.36 billion in the second quarter, representing a 4.3% decrease from the figure reported a year ago. Click to get this free report LATAM AIRLINES (LFL): Free Stock Analysis Report CATHAY PAC AIR (CPCAY): Free Stock Analysis Report ANA HOLDINGS (ALNPY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL reported better-than-expected earnings in the second quarter of 2016.
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American Airlines Group Inc. (AAL) Street Actual & Estimate EPS - Last 5 Quarters | FindTheCompany American Airlines reported operating revenues of $10.36 billion in the second quarter, representing a 4.3% decrease from the figure reported a year ago. Click to get this free report LATAM AIRLINES (LFL): Free Stock Analysis Report CATHAY PAC AIR (CPCAY): Free Stock Analysis Report ANA HOLDINGS (ALNPY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL reported better-than-expected earnings in the second quarter of 2016.
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American Airlines Group Inc. (AAL) Street Actual & Estimate EPS - Last 5 Quarters | FindTheCompany American Airlines reported operating revenues of $10.36 billion in the second quarter, representing a 4.3% decrease from the figure reported a year ago. American Airlines Group Inc.AAL reported better-than-expected earnings in the second quarter of 2016. Click to get this free report LATAM AIRLINES (LFL): Free Stock Analysis Report CATHAY PAC AIR (CPCAY): Free Stock Analysis Report ANA HOLDINGS (ALNPY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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0e9995d3-2c6e-4850-a7b7-6feefbe7aab8
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7878.0
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2016-07-22 00:00:00 UTC
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Nasdaq 100 Movers: SWKS, VOD
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-swks-vod-2016-07-22
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nan
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nan
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In early trading on Friday, shares of Vodafone Group topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.2%. Year to date, Vodafone Group plc has lost about 2.7% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Skyworks Solutions, trading down 9.1%. Skyworks Solutions, Inc. is lower by about 16.1% looking at the year to date performance.
Two other components making moves today are PayPal Holdings, trading down 7.8%, and American Airlines Group, trading up 3.4% on the day.
VIDEO: Nasdaq 100 Movers: SWKS, 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 Skyworks Solutions, trading down 9.1%. Skyworks Solutions, Inc. is lower by about 16.1% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: SWKS, VOD 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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Year to date, Vodafone Group plc has lost about 2.7% of its value. VIDEO: Nasdaq 100 Movers: SWKS, 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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In early trading on Friday, shares of Vodafone Group topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.2%. And the worst performing Nasdaq 100 component thus far on the day is Skyworks Solutions, trading down 9.1%. VIDEO: Nasdaq 100 Movers: SWKS, VOD 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 early trading on Friday, shares of Vodafone Group topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.2%. And the worst performing Nasdaq 100 component thus far on the day is Skyworks Solutions, trading down 9.1%. VIDEO: Nasdaq 100 Movers: SWKS, VOD 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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d2fd8cc6-0ff3-46ef-9654-ec53dba21c50
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7879.0
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2016-07-21 00:00:00 UTC
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SPDR Gold Trust (ETF) (GLD): Buy This Low-Risk Pullback!
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AAL
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https://www.nasdaq.com/articles/spdr-gold-trust-etf-gld%3A-buy-this-low-risk-pullback-2016-07-21
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nan
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It continues to be a good year for gold bugs and the SPDR Gold Trust (ETF) (NYSEARCA: GLD ). And for would-be bullish traders of the battleground metal, short-term technical weakness and options in the GLD exchange-traded fund make for a strong, low-risk opportunity to ride gold's building uptrend.
With the new normal in global markets, a bet on eternally low interest rates, elevated geopolitical attacks in 2016 and, let's face it, the possibility for more systemic financial disruptions being heavily discounted at the moment - there's plenty of reasons for the GLD ETF to continue rallying this year.
The largest potential threat to gold's uptrend is the PowerShares DB US Dollar Index Bullish (NYSEARCA: UUP ). As gold is traded in greenbacks, a widely held belief (when the logic fits) is to warn of the negative correlation between GLD and UUP, as dogma and proclaim foreign buyers won't support gold if the currency is finding a bid.
10 Healthcare Innovations That Will Change the World
Having said that, a cursory look at UUP should put the matter of oversimplifying this relationship with gold to rest.
Another reason to buy gold is a very supportive price chart offering the opportunity to buy the dip - and an options market in GLD to further define risk beyond what's possible with buying the gold ETF.
GLD Daily Chart
Click to Enlarge Since breaking out from a longstanding downtrend in February, GLD has gone on to produce an uptrend and rally to recent year-to-date gains of around 30% and prices last seen in 2014 during darker days for gold.
I last discussed GLD back on April 28 as it broke out of a continuation pattern. The date is denoted by the yellow highlight on the provided daily chart. While the rally was short-lived, a subsequent pullback did confirm gold's uptrend and led to even higher prices.
Since hitting a Brexit-driven high, shares of GLD have declined near channel support of a second, smaller and steeper uptrend that's developed over the past several weeks.
One technical caveat at this time is GLD is also facing an "all gaps get filled" situation. That may not bode well for bulls over the short term. However, unlike death and taxes, there are no guarantees this Wall Street adage will prove correct - despite the authoritarian declaration.
What this strategist can say right now is that bullish traders have the opportunity to buy on weakness in GLD stock at technical support within an oversold uptrend.
GLD Bullish Modified Butterfly Strategy
Wanting a position with as little risk as possible in GLD, but one able to yield a nice return in the event gold maintains its bullish bias and rallies to new, but not over-the-top highs - a modified September $128/$135/$140 long call butterfly is attractive.
Priced for $1.25, the strategy allows for a max profit of $5.75 at expiration if GLD lands at $135. That's a return of 460% if gold rallies about 6.50%; an amount definitely possible without getting carried away.
More to the point, and without getting too excited about perfection, the construction of the GLD butterfly means $1.25 is the trader's max risk.
Potentially - given very soft directional risk - if a technical stop loss was eventually used at lower GLD prices, the loss could be considerably less than the small debit to enter the position. That's a nice bonus.
American Airlines Group Inc (AAL) Stock: What to Expect Before Earnings
What's also attractive is this GLD modified butterfly's two embedded verticals are different widths. Unlike a regular butterfly, which would lose the debit above the highest strike, this GLD bull is still destined to make a profit of 75 cents, or return of 60% above $140.
Bottom line, that's a nice guarantee to have in place if you're trying to ride the trend in GLD and gold with as little risk as possible.
Investment accounts under Christopher Tyler's management do not currently GLD or the derivatives mentioned in this article, but positions may change at any time based on market conditions. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT .
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The post SPDR Gold Trust (ETF) (GLD): Buy This Low-Risk Pullback! 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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American Airlines Group Inc (AAL) Stock: What to Expect Before Earnings What's also attractive is this GLD modified butterfly's two embedded verticals are different widths. And for would-be bullish traders of the battleground metal, short-term technical weakness and options in the GLD exchange-traded fund make for a strong, low-risk opportunity to ride gold's building uptrend. With the new normal in global markets, a bet on eternally low interest rates, elevated geopolitical attacks in 2016 and, let's face it, the possibility for more systemic financial disruptions being heavily discounted at the moment - there's plenty of reasons for the GLD ETF to continue rallying this year.
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American Airlines Group Inc (AAL) Stock: What to Expect Before Earnings What's also attractive is this GLD modified butterfly's two embedded verticals are different widths. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips It continues to be a good year for gold bugs and the SPDR Gold Trust (ETF) (NYSEARCA: GLD ). Another reason to buy gold is a very supportive price chart offering the opportunity to buy the dip - and an options market in GLD to further define risk beyond what's possible with buying the gold ETF.
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American Airlines Group Inc (AAL) Stock: What to Expect Before Earnings What's also attractive is this GLD modified butterfly's two embedded verticals are different widths. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips It continues to be a good year for gold bugs and the SPDR Gold Trust (ETF) (NYSEARCA: GLD ). Another reason to buy gold is a very supportive price chart offering the opportunity to buy the dip - and an options market in GLD to further define risk beyond what's possible with buying the gold ETF.
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American Airlines Group Inc (AAL) Stock: What to Expect Before Earnings What's also attractive is this GLD modified butterfly's two embedded verticals are different widths. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips It continues to be a good year for gold bugs and the SPDR Gold Trust (ETF) (NYSEARCA: GLD ). GLD Bullish Modified Butterfly Strategy Wanting a position with as little risk as possible in GLD, but one able to yield a nice return in the event gold maintains its bullish bias and rallies to new, but not over-the-top highs - a modified September $128/$135/$140 long call butterfly is attractive.
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ba423476-d848-4dac-ab71-93448cfe4729
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7880.0
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2016-07-21 00:00:00 UTC
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Southwest Airlines Co (LUV): You Should Love LUV Stock
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-co-luv%3A-you-should-love-luv-stock-2016-07-21
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nan
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Southwest Airlines Co (NYSE: LUV ) reported record second-quarter earnings this morning. So why are investors selling LUV stock off by the bundle?
The low-cost airline appears to be a victim of its own recent earnings success. At $1.19, Southwest's adjusted earnings per share improved 15.5% from the same quarter a year ago, while sales increased 5.3% to $5.38 billion. Not good enough - analysts were expecting earnings-per-share of $1.21 and sales of an even $5.4 billion.
High Fuel Costs, Low Fares Hurt LUV Stock
There were a couple of reasons for the top- and bottom-line misses. For starters, Southwest paid well above spot prices for fuel due to previously existing advance contracts, forking over an average of $1.81 per gallon in the second quarter against an average of $1.31.
Lower-than-expected fares also weighed on Southwest's sales. Revenue per passenger mile declined 3.5%.
Wall Street saw enough negatives to punish LUV stock in pre-market trading , as shares were knocked back as much as 5.5% before Thursday's opening bell. It's the latest in a series of wild swings for LUV.
9 Best Cheap Stocks to Buy Under $10
Since the beginning of 2015, LUV has been a volatile stock, vaulting as high as 49 last December to as low as 32 this time a year ago. There's no obvious reason as to why the stock has been on such a yo-yo; in addition to the stellar earnings growth of previous quarters, sales growth has been steady, ranging between 5% and 11% over the last four quarters.
The recent recovery in oil prices has certainly hurt airline stocks. When oil prices plummeted in the second half of 2014 and all of last year, airline stocks got a big boost, as much as 44% on average at one point. They've cooled off lately. And after this morning's earnings miss, LUV will continue to cool, dipping back below its 50- and 200-day moving averages.
LUV stock actually started to fall on Wednesday after a technological problem grounded Southwest flights across the country for about three hours. So, it has been a rough 24 hours for the company.
I say there's no better time to buy LUV stock.
LUV: Good Growth Story, Cheap Stock
Look, there's nothing actually wrong with the company. Earnings growth slowed, but that was due mostly to a miscalculation about how far fuel prices would fall. Sales slowed too, but 5% is nothing to sneeze at. And as for the technological issues yesterday, that's a minor embarrassment that will be forgotten in a few days by everyone except the passengers who had their flights delayed for three hours. They'll eventually get over it too - it wasn't like they were poisoned with E. coli.
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Southwest's top- and bottom-line growth is still well ahead of most of its competitors. Neither American Airlines Group Inc (NASDAQ: AAL ) nor United Continental Holdings Inc (NYSE: UAL ) has grown sales since 2014, and Delta Air Lines, Inc. 's (NYSE: DAL ) have slipped for four straight quarters. And here's the real kicker: LUV is dirt cheap, trading at less than 10 times forward earnings prior to this morning's nosedive.
With plans to expand capacity by 5% to 6% this year and 15% EPS growth expected for full-year 2016, Southwest stock is a bargain. The last 24 hours - and investors' predictably heavy-handed response to it - have created an ideal entry point into a strong stock.
LUV is the rare stock that has risen four-fold over the last five years, yet remains incredibly cheap. To me, it's a screaming buy - especially after this morning's earnings miss.
As of this writing, Chris Fraley did not hold a position in any of the aforementioned securities.
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The post Southwest Airlines Co (LUV): You Should Love LUV Stock 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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Neither American Airlines Group Inc (NASDAQ: AAL ) nor United Continental Holdings Inc (NYSE: UAL ) has grown sales since 2014, and Delta Air Lines, Inc. 's (NYSE: DAL ) have slipped for four straight quarters. High Fuel Costs, Low Fares Hurt LUV Stock There were a couple of reasons for the top- and bottom-line misses. Wall Street saw enough negatives to punish LUV stock in pre-market trading , as shares were knocked back as much as 5.5% before Thursday's opening bell.
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Neither American Airlines Group Inc (NASDAQ: AAL ) nor United Continental Holdings Inc (NYSE: UAL ) has grown sales since 2014, and Delta Air Lines, Inc. 's (NYSE: DAL ) have slipped for four straight quarters. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Southwest Airlines Co (NYSE: LUV ) reported record second-quarter earnings this morning. High Fuel Costs, Low Fares Hurt LUV Stock There were a couple of reasons for the top- and bottom-line misses.
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Neither American Airlines Group Inc (NASDAQ: AAL ) nor United Continental Holdings Inc (NYSE: UAL ) has grown sales since 2014, and Delta Air Lines, Inc. 's (NYSE: DAL ) have slipped for four straight quarters. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Southwest Airlines Co (NYSE: LUV ) reported record second-quarter earnings this morning. 9 Best Cheap Stocks to Buy Under $10 Since the beginning of 2015, LUV has been a volatile stock, vaulting as high as 49 last December to as low as 32 this time a year ago.
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Neither American Airlines Group Inc (NASDAQ: AAL ) nor United Continental Holdings Inc (NYSE: UAL ) has grown sales since 2014, and Delta Air Lines, Inc. 's (NYSE: DAL ) have slipped for four straight quarters. 9 Best Cheap Stocks to Buy Under $10 Since the beginning of 2015, LUV has been a volatile stock, vaulting as high as 49 last December to as low as 32 this time a year ago. So, it has been a rough 24 hours for the company.
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7945e2a6-f3d5-486a-9cd0-6b8c0d48e061
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7881.0
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2016-07-21 00:00:00 UTC
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American Airlines Group Inc (AAL) Stock: What to Expect Before Earnings
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-aal-stock-what-expect-earnings-2016-07-21
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nan
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
American Airlines Group Inc (NASDAQ: AAL ) reports earnings Friday morning. But in front of the release are investors readying for a takeoff or bracing for an emergency grounding in AAL stock?
Let's take a look at American Airlines recent quarterly announcements, the AAL stock chart and what, if anything, the options market estimates in front of the earnings report.
American Airlines Earnings Picture
On the one hand, the current consensus estimate compares to last year's same quarter result of $2.62 and represents a decline of nearly 36%. On the other hand, earnings did top Street estimates by about 8% in the year-ago quarter.
10 Explosive Energy Stocks Under $10 Worth Considering
Full-year profit views are for AAL to earn $5.33 in 2016 and down from 2015's $9.09 per share result.
On the sales side, AAL's revenues are expected to rise to $10.31 billion compared to Q1's $9.44 billion result, but slip marginally from 2015's same quarter sales of $10.83 billion.
AAL Stock Short-Term Trading Record
Shares of American Airlines have established a strong pattern of beating Street profit views. In fact, over the past 10 quarters, AAL earnings have beat forecasts 100% of the time. In the immediate aftermath of reporting, however, investor reaction in AAL stock has been less impressive.
Losses over the past several quarters have held the advantage over gains in AAL shareholder value. Working backward, AAL has moved -4.50%, 2.24%, -0.70%, -7.00%, 2.43% and -4.96%.
Overall this has produced an average loss of -2.08% and variability of about 4% based on a one standard deviation reading. AAL's seven-day stock performance has resulted in a larger average loss of -5.62% with one standard deviation of 5%.
AAL Stock Weekly Chart
Click to Enlarge The weekly chart of AAL shows a stock that may be establishing a new uptrend following a higher-low variation of the double-bottom pattern. Having said that, AAL stock holders face a tough near-term situation.
With the aggressive rally over the past month, shares of AAL are extended short-term into overhead technical zone resistance. American Airlines could still find a bid from investors, as there are no technical certainties in the market, but we wouldn't push our luck in this situation.
At the end of the day a bullish reaction would run counter to recent earnings moves in AAL stock as shares challenge key resistance from the 38% to 50% Fibonacci levels, fairly obvious price congestion and a down-channel line.
AAL Stock Options Pricing
Other traders are less cautious this week in AAL options. On Monday one large trader was spied rolling up 10,000 contracts into the Aug $37 call. The AAL call adjustment reduces or even eliminates risk, but still exposes the bullish trader to the premium on that strike.
Tuesday's session in American Airlines options has been less interesting as far as activity. However, premiums point to a 68% chance AAL stock will trade in a range spanning roughly from $34.35 to $38.40 through this Friday.
The math behind the AAL calculation is based on the at-the-money weeklys July 22 straddle market, which trades on implied volatility of 62% with three trading sessions until expiration.
The weeklys are the purest play on the earnings event and tells us what traders collectively expect from AAL stock in the immediate aftermath of its quarterly announcement.
The expected dollar works out to about 5.6% by Friday's close. That size reaction is on the edge of recent close-to-close changes in AAL, but fairly ordinary versus the discussed individual results.
Relypsa Inc: RLYP Stock Pops 60% on Galenica Buyout Bid
What might raise eyebrows, other than to the trader rolling the aforementioned calls, is a move of that magnitude pushing AAL higher. As noted, AAL stock has demonstrated more of a knack for grounding investors and we're not optimistic a new trend has the fuel to break that record this earnings season.
Investment accounts under Christopher Tyler's management do not currently own positions in any of the securities or their derivatives mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT .
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The post American Airlines Group Inc (AAL) Stock: What to Expect Before Earnings 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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AAL Stock Short-Term Trading Record Shares of American Airlines have established a strong pattern of beating Street profit views. At the end of the day a bullish reaction would run counter to recent earnings moves in AAL stock as shares challenge key resistance from the 38% to 50% Fibonacci levels, fairly obvious price congestion and a down-channel line. Relypsa Inc: RLYP Stock Pops 60% on Galenica Buyout Bid What might raise eyebrows, other than to the trader rolling the aforementioned calls, is a move of that magnitude pushing AAL higher.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group Inc (NASDAQ: AAL ) reports earnings Friday morning. Let's take a look at American Airlines recent quarterly announcements, the AAL stock chart and what, if anything, the options market estimates in front of the earnings report. AAL Stock Short-Term Trading Record Shares of American Airlines have established a strong pattern of beating Street profit views.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group Inc (NASDAQ: AAL ) reports earnings Friday morning. AAL Stock Weekly Chart Click to Enlarge The weekly chart of AAL shows a stock that may be establishing a new uptrend following a higher-low variation of the double-bottom pattern. More From InvestorPlace 5 Tech Stocks That Will Be Obsolete by 2020 10 Stocks to Buy If Donald Trump Becomes President The post American Airlines Group Inc (AAL) Stock: What to Expect Before Earnings appeared first on InvestorPlace .
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines Group Inc (NASDAQ: AAL ) reports earnings Friday morning. Let's take a look at American Airlines recent quarterly announcements, the AAL stock chart and what, if anything, the options market estimates in front of the earnings report. AAL Stock Short-Term Trading Record Shares of American Airlines have established a strong pattern of beating Street profit views.
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2016-07-21 00:00:00 UTC
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Pre-Market Earnings Report for July 22, 2016 : GE, HON, VFC, SYF, STI, AAL, MCO, SWK, WHR, TXT, ALV, GNTX
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AAL
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https://www.nasdaq.com/articles/pre-market-earnings-report-july-22-2016-ge-hon-vfc-syf-sti-aal-mco-swk-whr-txt-alv-gntx
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The following companies are expected to report earnings prior to market open on 07/22/2016. Visit our Earnings Calendar for a full list of expected earnings releases.
General Electric Company ( GE ) is reporting for the quarter ending June 30, 2016. The diversified operations company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.46. This value represents a 48.39% increase compared to the same quarter last year. In the past year GE 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 GE is 21.85 vs. an industry ratio of 23.40.
Honeywell International Inc. ( HON ) is reporting for the quarter ending June 30, 2016. The diversified operations company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.64. This value represents a 8.61% 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 18.00 vs. an industry ratio of 23.40.
V.F. Corporation ( VFC ) is reporting for the quarter ending June 30, 2016. The textile company's consensus earnings per share forecast from the 18 analysts that follow the stock is $0.34. This value represents a 15.00% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2016 Price to Earnings ratio for VFC is 19.88 vs. an industry ratio of 28.00.
Synchrony Financial ( SYF ) is reporting for the quarter ending June 30, 2016. The financial services company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.55. This value represents a 15.38% decrease compared to the same quarter last year. In the past year SYF has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 1.45%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for SYF is 10.58 vs. an industry ratio of 48.90.
SunTrust Banks, Inc. ( STI ) is reporting for the quarter ending June 30, 2016. The bank company's consensus earnings per share forecast from the 12 analysts that follow the stock is $0.87. This value represents a 2.25% decrease compared to the same quarter last year. In the past year STI has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 10.53%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for STI is 12.40 vs. an industry ratio of 12.80.
American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending June 30, 2016. The airline company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.60. This value represents a 38.93% 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 1st calendar quarter where they beat the consensus by 5.93%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for AAL is 6.78 vs. an industry ratio of 25.10.
Moody's Corporation ( MCO ) is reporting for the quarter ending June 30, 2016. The financial services company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.24. This value represents a 3.13% decrease compared to the same quarter last year. MCO missed the consensus earnings per share in the 1st calendar quarter of 2016 by -13.08%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for MCO is 22.91 vs. an industry ratio of 48.90.
Stanley Black & Decker, Inc. ( SWK ) is reporting for the quarter ending June 30, 2016. The machinery company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.71. This value represents a 11.04% increase compared to the same quarter last year. In the past year SWK 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 SWK is 18.39 vs. an industry ratio of 18.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Whirlpool Corporation ( WHR ) is reporting for the quarter ending June 30, 2016. The household appliance company's consensus earnings per share forecast from the 3 analysts that follow the stock is $3.37. This value represents a 24.81% increase compared to the same quarter last year. WHR missed the consensus earnings per share in the 1st calendar quarter of 2016 by -2.95%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for WHR is 12.63 vs. an industry ratio of 12.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Textron Inc. ( TXT ) is reporting for the quarter ending June 30, 2016. The aerospace and defense company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.63. This value represents a 5.00% increase compared to the same quarter last year. TXT missed the consensus earnings per share in the 4th calendar quarter of 2015 by -2.41%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for TXT is 14.49 vs. an industry ratio of 16.90.
Autoliv, Inc. ( ALV ) is reporting for the quarter ending June 30, 2016. The auto (truck) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.75. This value represents a 8.02% increase compared to the same quarter last year. In the past year ALV has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 10.67%. Zacks Investment Research reports that the 2016 Price to Earnings ratio for ALV is 15.94 vs. an industry ratio of 25.70.
Gentex Corporation ( GNTX ) is reporting for the quarter ending June 30, 2016. The auto (truck) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.29. This value represents a 16.00% increase compared to the same quarter last year. In the past year GNTX has met analyst expectations three times and beat the expectations the other quarter. The "days to cover" for this stock exceeds 10 days. Zacks Investment Research reports that the 2016 Price to Earnings ratio for GNTX is 13.72 vs. an industry ratio of 25.70.
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 June 30, 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 6.78 vs. an industry ratio of 25.10.
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American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending June 30, 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 6.78 vs. an industry ratio of 25.10.
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American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending June 30, 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 6.78 vs. an industry ratio of 25.10.
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In the past year AAL has beat the expectations every quarter. American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending June 30, 2016. Zacks Investment Research reports that the 2016 Price to Earnings ratio for AAL is 6.78 vs. an industry ratio of 25.10.
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2016-07-20 00:00:00 UTC
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The Zacks Analyst Blog Highlights: American Airlines, Southwest Airlines, Hawaiian Holdings and Alaska Air Group
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-american-airlines-southwest-airlines-hawaiian-holdings
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For Immediate Release
Chicago, IL - July 20, 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 ( AAL ) , Southwest Airlines ( LUV ) , Hawaiian Holdings ( HA ) and Alaska Air Group ( ALK ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Tuesday's Analyst Blog:
Airline Stocks in Focus for Q2 Earnings Season
e take a look at five of the country's most important airlines in order to get a better handle on how they might perform this earnings season. This will be especially important following Delta's (DAL) beat last week, as the company surpassed expectations though it gave some warning signals too.
Additionally, the airline industry has a horrific industry rank right now, putting it into the bottom 10% of all the ones we cover. And with terrorism and Zika concerns in the background, things might not change anytime soon for this space.
Still, no two airline stocks are the same and many have vastly different outlooks heading into earnings season. Let's take a quick look at some reporting this week:
American Airlines ( AAL )
Another legacy carrier that has seen some issues in recent trading is American. Shares here are well off of their 2016 highs, though they have fought back in July. Still, with a Zacks Rank #5 (strong sell) it is hard to like this stock even with its strong VGM score of 'B' and its incredible history of beats in earnings season.
AMER AIRLINES Price and EPS Surprise | AMER AIRLINES Quote
Southwest Airlines ( LUV )
Unlike its legacy counterparts, Southwest Airlines has done a bit better leading into this report. However, it hasn't made much of a difference to analysts, as shares still have a Zacks Rank #5 (strong sell). The stock does at least have a positive Earnings ESP and an 'A' VGM score though. So while the company isn't looking to great heading into earnings, it still has strong fundamentals.
SOUTHWEST AIR Price, Consensus and EPS Surprise | SOUTHWEST AIR Quote
Hawaiian Holdings ( HA )
HA shares have fought back nicely in recent trading and are on the upswing. Part of the reason for this shift is their relative insulation from Zika concerns, and arguably lower terrorism related issues to worry about too. Perhaps that is why the stock is the only one of the five to have a Zacks Rank #3 (hold) in addition to an 'A' VGM score, and could be among the best of the bunch this earnings season.
HAWAIIAN HLDGS Price and Consensus | HAWAIIAN HLDGS Quote
Alaska Air Group ( ALK )
ALK is kind of a mixed bag these days as the company has a Zacks Rank #5 (strong sell) though it has a positive Earnings ESP and a VGM score of 'B'. Additionally, any further commentary regarding the merger between ALK and Virgin America is likely to be the main focus, potentially stealing the spotlight from the coming report.
ALASKA AIR GRP Price and Consensus | ALASKA AIR GRP Quote
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Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock 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.
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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! Register for your free subscription to Profit from the Pros .
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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
AMER AIRLINES (AAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
ALASKA AIR GRP (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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Stocks recently featured in the blog include American Airlines ( AAL ) , Southwest Airlines ( LUV ) , Hawaiian Holdings ( HA ) and Alaska Air Group ( ALK ). Let's take a quick look at some reporting this week: American Airlines ( AAL ) Another legacy carrier that has seen some issues in recent trading is American. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report ALASKA AIR GRP (ALK): 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 ( AAL ) , Southwest Airlines ( LUV ) , Hawaiian Holdings ( HA ) and Alaska Air Group ( ALK ). Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Let's take a quick look at some reporting this week: American Airlines ( AAL ) Another legacy carrier that has seen some issues in recent trading is American.
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Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include American Airlines ( AAL ) , Southwest Airlines ( LUV ) , Hawaiian Holdings ( HA ) and Alaska Air Group ( ALK ). Let's take a quick look at some reporting this week: American Airlines ( AAL ) Another legacy carrier that has seen some issues in recent trading is American.
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Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include American Airlines ( AAL ) , Southwest Airlines ( LUV ) , Hawaiian Holdings ( HA ) and Alaska Air Group ( ALK ). Let's take a quick look at some reporting this week: American Airlines ( AAL ) Another legacy carrier that has seen some issues in recent trading is American.
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2016-07-20 00:00:00 UTC
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American Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues To Weigh Heavily
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AAL
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https://www.nasdaq.com/articles/american-q216-earnings-preview-rising-oil-prices-lower-unit-revenues-weigh-heavily-2016-07
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Key Trends:
American's decision to revise its capacity guidance earlier in the year will likely help the airline to manage costs, in the face of rising oil prices , and partially offset the effect of declining unit revenues.
PRASM is expected to continue its downward trajectory, dragging down the top line.
The oil prices have risen almost 37% since the start of the year due to a range of factors, such as production cuts in the U.S., geopolitical disturbances in Venezuala and Nigeria, and a wild-fire in Alberta, Canada. Moreover, American follows a policy of not hedging its fuel consumption. The two factors may result in American's exceeding its fuel price guidance, which is likely to severely hit its operating margins.
Unit cost growth, excluding fuel, is expected to be higher than previous quarters at 4% to 6%, as a result of increased personnel costs due to its integration with US Airways during 2015.
American recently made changes to its AAdvantage loyalty program, shifting to award miles based on the price of a ticket. This is expected to help them attract more traffic.
The new $2 billion share repurchase program may help the legacy carrier offset the impact of higher costs, fuel and non-fuel, on its EPS.
Have more questions about American Airlines ( AAL )? See the following links:
Here's Why We Revised American Airlines' Price Estimate To $46 Per Share
American Airlines' 1Q'16 Revenue And Earnings Decline; Investors Penalize Airline For Downward Revision Of 2016 Capacity Growth Target
US Legacy Carriers: A Comparison Of Aircraft Fleet
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?
How Will American Airlines' Equity Value Move, If Crude Oil Prices Average $50 Per Barrel In 2018?
How Did American Airlines' Revenue And EBITDA Grow Over The Last Five Years?
How Did American Airlines Use Its Increased Cash Flows In 2015?
How Will American Airlines' Revenue And EBITDA Grow Over The Next Five Years?
What Is American Airlines' Fundamental Value Based On 2016 Estimated Numbers?
How Has The Oil Slump Impacted American Airlines' Operating Margins?
How Has American Airlines' Revenue And EBITDA Composition Changes Over The Last Five Years?
What Is American Airlines' Revenue And EBITDA Breakdown?
US Airlines: A Comparison Of Operating Margins
US Airlines: A Comparison Of Dividend Yields
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):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
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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 )? Key Trends: American's decision to revise its capacity guidance earlier in the year will likely help the airline to manage costs, in the face of rising oil prices , and partially offset the effect of declining unit revenues. The oil prices have risen almost 37% since the start of the year due to a range of factors, such as production cuts in the U.S., geopolitical disturbances in Venezuala and Nigeria, and a wild-fire in Alberta, Canada.
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Have more questions about American Airlines ( AAL )? The new $2 billion share repurchase program may help the legacy carrier offset the impact of higher costs, fuel and non-fuel, on its EPS. See the following links: Here's Why We Revised American Airlines' Price Estimate To $46 Per Share American Airlines' 1Q'16 Revenue And Earnings Decline; Investors Penalize Airline For Downward Revision Of 2016 Capacity Growth Target US Legacy Carriers: A Comparison Of Aircraft Fleet How Important Will American's International Operations Be In 2020?
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Have more questions about American Airlines ( AAL )? Key Trends: American's decision to revise its capacity guidance earlier in the year will likely help the airline to manage costs, in the face of rising oil prices , and partially offset the effect of declining unit revenues. See the following links: Here's Why We Revised American Airlines' Price Estimate To $46 Per Share American Airlines' 1Q'16 Revenue And Earnings Decline; Investors Penalize Airline For Downward Revision Of 2016 Capacity Growth Target US Legacy Carriers: A Comparison Of Aircraft Fleet How Important Will American's International Operations Be In 2020?
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Have more questions about American Airlines ( AAL )? Key Trends: American's decision to revise its capacity guidance earlier in the year will likely help the airline to manage costs, in the face of rising oil prices , and partially offset the effect of declining unit revenues. Unit cost growth, excluding fuel, is expected to be higher than previous quarters at 4% to 6%, as a result of increased personnel costs due to its integration with US Airways during 2015.
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2016-07-19 00:00:00 UTC
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American Airlines (AAL) Q2 Earnings Likely to Disappoint
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-q2-earnings-likely-to-disappoint-2016-07-19
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American Airlines Group Inc.AAL is slated to release second-quarter 2016 results on Jul 22, before market opens. The company posted an earnings surprise of 5.93% in the last quarter. Moreover, the company recorded an earnings surprise in each of the last four quarters, with an average surprise of 2.74%. It remains to be seen how the company performs this time.
Factors at Play this Quarter
American Airlines has been dealt a heavy blow by the recent terror attacks, macroeconomic issues and dull second-quarter outlook. Additionally, the Brexit episode is expected to create additional pressure on major U.S. airline stocks such as American Airlines, United Continental Holdings, Inc. UAL) and Delta Air Lines Inc. DAL . Another matter of concern is the decline in load factor in June as capacity outpaced traffic growth. An expected decline of 6--7% in consolidated passenger revenue per available seat mile (PRASM) in the second quarter is not encouraging.
The company might see some respite from low oil prices with pretax margin excluding special items expected in the range of 14 -16%. However, we expect below-par results especially with respect to the top line in the second quarter.
AMER AIRLINES Price and EPS Surprise
AMER AIRLINES Price and EPS Surprise | AMER AIRLINES Quote
Earnings Whispers
Our proven model does not conclusively show that American Airlines is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.57. Hence, the ESP is 0.00%.
Zacks Rank: The company carries a Zacks Rank #5 (Strong Sell). Please note that we caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions as is the case with American Airlines.
Stocks to Consider
Here is a stock you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter.
Latam Airlines Group S.A. LFL has an Earnings ESP of over 100% and a Zacks Rank #2.
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 >>
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
LATAM AIRLINES (LFL): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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 Group Inc.AAL is slated to release second-quarter 2016 results on Jul 22, before market opens. Click to get this free report LATAM AIRLINES (LFL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Factors at Play this Quarter American Airlines has been dealt a heavy blow by the recent terror attacks, macroeconomic issues and dull second-quarter outlook.
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Click to get this free report LATAM AIRLINES (LFL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL is slated to release second-quarter 2016 results on Jul 22, before market opens. Additionally, the Brexit episode is expected to create additional pressure on major U.S. airline stocks such as American Airlines, United Continental Holdings, Inc. UAL) and Delta Air Lines Inc. DAL .
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Click to get this free report LATAM AIRLINES (LFL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL is slated to release second-quarter 2016 results on Jul 22, before market opens. AMER AIRLINES Price and EPS Surprise AMER AIRLINES Price and EPS Surprise | AMER AIRLINES Quote Earnings Whispers Our proven model does not conclusively show that American Airlines is likely to beat earnings this quarter.
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American Airlines Group Inc.AAL is slated to release second-quarter 2016 results on Jul 22, before market opens. Click to get this free report LATAM AIRLINES (LFL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company posted an earnings surprise of 5.93% in the last quarter.
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32b0c1a3-63ae-49cb-a36b-61108369b258
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7886.0
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2016-07-19 00:00:00 UTC
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Airline Stocks in Focus for Earnings Season: UAL, LUV, AAL, HA, ALK
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AAL
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https://www.nasdaq.com/articles/airline-stocks-focus-earnings-season-ual-luv-aal-ha-alk-2016-07-19
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nan
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nan
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In this video, we take a look at five of the country's most important airlines in order to get a better handle on how they might perform this earnings season. This will be especially important following Delta's (DAL) beat last week, as the company surpassed expectations though it gave some warning signals too.
Additionally, the airline industry has a horrific industry rank right now, putting it into the bottom 10% of all the ones we cover. And with terrorism and Zika concerns in the background, things might not change anytime soon for this space.
Still, no two airline stocks are the same and many have vastly different outlooks heading into earnings season. Let's take a quick look at the big five that are all reporting this week:
United Airlines (UAL)
United has seen some turbulent trading lately and shares have been beaten down over the past three month time frame. Analysts aren't very optimistic either, as shares have a Zacks Rank #5 (Strong Sell) right now. UAL does have a 'B' for its VGM score so at least it is looking promising from a fundamental look-and especially value-heading into the report.
UNITED CONT HLD Price and Consensus
UNITED CONT HLD Price and Consensus | UNITED CONT HLD Quote
American Airlines (AAL)
Another legacy carrier that has seen some issues in recent trading is American. Shares here are well off of their 2016 highs, though they have fought back in July. Still, with a Zacks Rank #5 (strong sell) it is hard to like this stock even with its strong VGM score of 'B' and its incredible history of beats in earnings season.
AMER AIRLINES Price and EPS Surprise
AMER AIRLINES Price and EPS Surprise | AMER AIRLINES Quote
Southwest Airlines (LUV)
Unlike its legacy counterparts, Southwest Airlines has done a bit better leading into this report. However, it hasn't made much of a difference to analysts, as shares still have a Zacks Rank #5 (strong sell). The stock does at least have a positive Earnings ESP and an 'A' VGM score though. So while the company isn't looking to great heading into earnings, it still has strong fundamentals.
SOUTHWEST AIR Price, Consensus and EPS Surprise
SOUTHWEST AIR Price, Consensus and EPS Surprise | SOUTHWEST AIR Quote
Hawaiian Holdings (HA)
HA shares have fought back nicely in recent trading and are on the upswing. Part of the reason for this shift is their relative insulation from Zika concerns, and arguably lower terrorism related issues to worry about too. Perhaps that is why the stock is the only one of the five to have a Zacks Rank #3 (hold) in addition to an 'A' VGM score, and could be among the best of the bunch this earnings season.
HAWAIIAN HLDGS Price and Consensus
HAWAIIAN HLDGS Price and Consensus | HAWAIIAN HLDGS Quote
Alaska Air Group (ALK)
ALK is kind of a mixed bag these days as the company has a Zacks Rank #5 (strong sell) though it has a positive Earnings ESP and a VGM score of 'B'. Additionally, any further commentary regarding the merger between ALK and Virgin America is likely to be the main focus, potentially stealing the spotlight from the coming report.
ALASKA AIR GRP Price and Consensus
ALASKA AIR GRP Price and Consensus | ALASKA AIR GRP Quote
And for more on how to trade earnings, make sure to listen to our podcast below:
Author is long LUV
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SOUTHWEST AIR (LUV): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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UNITED CONT HLD Price and Consensus UNITED CONT HLD Price and Consensus | UNITED CONT HLD Quote American Airlines (AAL) Another legacy carrier that has seen some issues in recent trading is American. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. This will be especially important following Delta's (DAL) beat last week, as the company surpassed expectations though it gave some warning signals too.
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UNITED CONT HLD Price and Consensus UNITED CONT HLD Price and Consensus | UNITED CONT HLD Quote American Airlines (AAL) Another legacy carrier that has seen some issues in recent trading is American. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. SOUTHWEST AIR Price, Consensus and EPS Surprise SOUTHWEST AIR Price, Consensus and EPS Surprise | SOUTHWEST AIR Quote Hawaiian Holdings (HA) HA shares have fought back nicely in recent trading and are on the upswing.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. UNITED CONT HLD Price and Consensus UNITED CONT HLD Price and Consensus | UNITED CONT HLD Quote American Airlines (AAL) Another legacy carrier that has seen some issues in recent trading is American. AMER AIRLINES Price and EPS Surprise AMER AIRLINES Price and EPS Surprise | AMER AIRLINES Quote Southwest Airlines (LUV) Unlike its legacy counterparts, Southwest Airlines has done a bit better leading into this report.
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UNITED CONT HLD Price and Consensus UNITED CONT HLD Price and Consensus | UNITED CONT HLD Quote American Airlines (AAL) Another legacy carrier that has seen some issues in recent trading is American. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. SOUTHWEST AIR Price, Consensus and EPS Surprise SOUTHWEST AIR Price, Consensus and EPS Surprise | SOUTHWEST AIR Quote Hawaiian Holdings (HA) HA shares have fought back nicely in recent trading and are on the upswing.
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1f57c265-8bfa-4b21-8e0a-f715ed800673
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7887.0
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2016-07-19 00:00:00 UTC
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The Zacks Analyst Blog Highlights: American Airlines, Kansas City Southern, Union Pacific, Costamare and Marten Transport
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-american-airlines-kansas-city-southern-union-pacific
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nan
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nan
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For Immediate Release
Chicago, IL - July 19, 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 ( AAL ), Kansas City Southern ( KSU ), Union Pacific Corporation ( UNP ), Costamare Inc. ( CMRE ) and Marten Transport, Ltd. ( MRTN ) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Monday's Analyst Blog:
Transportation Stocks to Post Q2 Earnings: CMRE, KSU & MRTN
The Q2 earnings season is in the nascent stage with 36 S&P 500 participants having reported results so far. The season, nevertheless, has started on a strong note, courtesy impressive results from big names like JPMorgan Chase. Investors are going to be super busy this week, with a number of earnings releases scheduled to come in from every possible corner.
It will be a busy week for the transportation sector (one of the of the 16 Zacks sectors) too, as many big names in the space like American Airlines Group ( AAL ) are scheduled to report quarterly numbers. According to our latest Earnings Trends Report , 20% of the sector participants (S&P 500) have unveiled their numbers so far, all of them outshining the Zacks Consensus Estimate for earnings and recording a 5.7% growth rate.
Interestingly, the transportation sector has been undergoing challenging times of late due to a number of global headwinds like the surge in terror attacks, declining coal shipments and the Brexit referendum. It, however, remains to be seen if the upward momentum will continue through the rest of the season.
Here, we have compiled a list of three players operating in the widely diversified transportation space that are expected to report quarterly numbers on Jul 19.
Kansas City Southern ( KSU ) is slated to release second-quarter results before the market opens. This will kick off the earnings season in the railroad industry, which will see big players like Union Pacific Corporation ( UNP ) reporting later in the week.
In the first quarter of 2016, the Missouri-based railroad operator reported better-than-expected earnings.
However, last quarter's bottom-line outperformance was largely the result of a conservative Zacks Consensus Estimate, as earnings estimates were slashed due to multiple headwinds, the primary one being coal. However, an earnings beat might be tough for the railroad operator this time around (read more: Kansas City Southern Q2 Earnings: What's in Store? ).
KANSAS CITY SOU Price and EPS Surprise | KANSAS CITY SOU Quote
Costamare Inc. ( CMRE ) is expected to release second-quarter numbers on Jul 19. Things, however, appear bleak for the shipping company. According to our quantitative 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, Costamare has an Earnings ESP of -5.00% as the Most Accurate estimate is pegged at 38 cents while the Zacks Consensus Estimate is 2 cents higher. The company has a Zacks Rank # 5 (Strong Sell). As it is, we caution against Sell-rated stocks going into the earnings announcement.
COSTAMARE INC Price and EPS Surprise | COSTAMARE INC Quote
Marten Transport, Ltd. ( MRTN ) , a Mondovi, WI-based, long-haul truckload carrier, is expected to release second-quarter results on Jul 19. Our model does not indicate that the company is likely to beat earnings this quarter. This is because Marten Transport is a Zacks Rank # 4 (Sell) stock and has an Earnings ESP of 0.00%.
MARTEN TRANS Price and EPS Surprise | MARTEN TRANS Quote
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Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock 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.
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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! Register for your free subscription to Profit from the Pros .
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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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AMER AIRLINES (AAL): Free Stock Analysis Report
KANSAS CITY SOU (KSU): Free Stock Analysis Report
UNION PAC CORP (UNP): Free Stock Analysis Report
COSTAMARE INC (CMRE): Free Stock Analysis Report
MARTEN TRANS (MRTN): 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 ( AAL ), Kansas City Southern ( KSU ), Union Pacific Corporation ( UNP ), Costamare Inc. ( CMRE ) and Marten Transport, Ltd. ( MRTN ) . It will be a busy week for the transportation sector (one of the of the 16 Zacks sectors) too, as many big names in the space like American Airlines Group ( AAL ) are scheduled to report quarterly numbers. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report KANSAS CITY SOU (KSU): Free Stock Analysis Report UNION PAC CORP (UNP): Free Stock Analysis Report COSTAMARE INC (CMRE): Free Stock Analysis Report MARTEN TRANS (MRTN): 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 ( AAL ), Kansas City Southern ( KSU ), Union Pacific Corporation ( UNP ), Costamare Inc. ( CMRE ) and Marten Transport, Ltd. ( MRTN ) . Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report KANSAS CITY SOU (KSU): Free Stock Analysis Report UNION PAC CORP (UNP): Free Stock Analysis Report COSTAMARE INC (CMRE): Free Stock Analysis Report MARTEN TRANS (MRTN): Free Stock Analysis Report To read this article on Zacks.com click here. It will be a busy week for the transportation sector (one of the of the 16 Zacks sectors) too, as many big names in the space like American Airlines Group ( AAL ) are scheduled to report quarterly numbers.
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Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report KANSAS CITY SOU (KSU): Free Stock Analysis Report UNION PAC CORP (UNP): Free Stock Analysis Report COSTAMARE INC (CMRE): Free Stock Analysis Report MARTEN TRANS (MRTN): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include American Airlines Group ( AAL ), Kansas City Southern ( KSU ), Union Pacific Corporation ( UNP ), Costamare Inc. ( CMRE ) and Marten Transport, Ltd. ( MRTN ) . It will be a busy week for the transportation sector (one of the of the 16 Zacks sectors) too, as many big names in the space like American Airlines Group ( AAL ) are scheduled to report quarterly numbers.
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Stocks recently featured in the blog include American Airlines Group ( AAL ), Kansas City Southern ( KSU ), Union Pacific Corporation ( UNP ), Costamare Inc. ( CMRE ) and Marten Transport, Ltd. ( MRTN ) . It will be a busy week for the transportation sector (one of the of the 16 Zacks sectors) too, as many big names in the space like American Airlines Group ( AAL ) are scheduled to report quarterly numbers. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report KANSAS CITY SOU (KSU): Free Stock Analysis Report UNION PAC CORP (UNP): Free Stock Analysis Report COSTAMARE INC (CMRE): Free Stock Analysis Report MARTEN TRANS (MRTN): Free Stock Analysis Report To read this article on Zacks.com click here.
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53796312-ae84-46fe-a2d8-04b76616156d
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7888.0
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2016-07-18 00:00:00 UTC
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JetBlue (JBLU) June Traffic Improves, RASM Declines 4.5%
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AAL
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https://www.nasdaq.com/articles/jetblue-jblu-june-traffic-improves-rasm-declines-4.5-2016-07-18
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nan
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nan
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Low-cost carrier JetBlue Airways Corp.JBLU witnessed an improvement in air traffic in the month of June. Traffic - measured in revenue passenger miles (RPMs) - was 3.95 billion, up 11.6% from 3.54 billion recorded a year ago. On a year-over-year basis, consolidated capacity or available seat miles (ASMs) soared to 10.5% to 4.58 billion.
Load factor or percentage of seats filled by passengers increased to 86.2% while it was 85.3% in Jun 2015. The increase in the metric was due to traffic growth outpacing capacity expansion. JetBlue's preliminary revenue per available seat mile (RASM) in the month dropped roughly 4.5% on a year-over-year basis.
Moreover, for the first six months of 2016, JetBlue generated RPMs of 22.52 billion (up 12.1% year over year) and ASMs of 26.62 billion (up 12.6%). However, the load factor declined 30 basis points to 84.9%.
Routes Expansion
JetBlue is one of the best-performing budget airlines in the U.S. The company's focus on route expansion in order to improve operations in its service areas by driving passenger count along with boosting supplementary revenues augurs well. Additionally being chosen as one of the many US based carriers by the U.S. Department of Transportation to operate scheduled flights to Cuba is an immensely stimulating news for JetBlue.
Moreover, in sync with its customer-centric efforts, JetBlue recently declared that it would cover TSA Pre enrollment cost for its most frequent fliers or the Mosaic TrueBlue members. The airline has introduced this limited time offer to cut down waiting time at TSA screening checkpoints.
Citing pressures due to lower demand for travelling in the wake of numerous terrorist attacks, most airline companies have been trimming their outlook for the year. The list includes Delta Airlines DAL , European low-cost carrier Ryanair Holdings RYAAY and American Airlines Group AAL .
JetBlue currently carries a Zacks Rank #5 (Strong Sell)
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 >>
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RYANAIR HLDGS (RYAAY): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
AMER AIRLINES (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 list includes Delta Airlines DAL , European low-cost carrier Ryanair Holdings RYAAY and American Airlines Group AAL . Click to get this free report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company's focus on route expansion in order to improve operations in its service areas by driving passenger count along with boosting supplementary revenues augurs well.
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The list includes Delta Airlines DAL , European low-cost carrier Ryanair Holdings RYAAY and American Airlines Group AAL . Click to get this free report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (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 RYANAIR HLDGS (RYAAY): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The list includes Delta Airlines DAL , European low-cost carrier Ryanair Holdings RYAAY and American Airlines Group AAL . Traffic - measured in revenue passenger miles (RPMs) - was 3.95 billion, up 11.6% from 3.54 billion recorded a year ago.
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The list includes Delta Airlines DAL , European low-cost carrier Ryanair Holdings RYAAY and American Airlines Group AAL . Click to get this free report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. On a year-over-year basis, consolidated capacity or available seat miles (ASMs) soared to 10.5% to 4.58 billion.
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ff950035-39c5-440d-bd20-fe030fa6a345
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7889.0
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2016-07-18 00:00:00 UTC
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United Continental (UAL) Q2 Earnings: What's in the Cards?
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AAL
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https://www.nasdaq.com/articles/united-continental-ual-q2-earnings%3A-whats-in-the-cards-2016-07-18
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nan
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nan
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United Continental Holdings, Inc. (UAL) will be reporting second-quarter earnings on Jul 20, before the market opens. Last quarter, the company recorded a positive earnings surprise of 5.13%. Let's see how things are shaping up for this announcement.
Factors at Play This Quarter
United Airlines, the Chicago-based unit of the company, has gone through a turbulent few months owing to labor issues, macroeconomic woes and staggering demand. Also, the company's challenges seem to be increasing. It will be paying fine related to an issue with a Newark flight. The company will however not be charged for it. The company had reached a tentative agreement on a labor contract for which voting is currently underway. Scheduled to close on Aug 12, a negative result could put operational efficiency in disarray.
In addition to internal issues, the global rise in terrorism has been a key reason behind plunging airline stock prices. Recent incidents of terrorism, such as the Bastille Day attack in Nice, France as well as the café attack in Dhaka have had an extremely unfavorable impact on the company's business. Other companies like Airlines Group Inc. AAL and Delta Air Lines Inc. DAL too had to bear the brunt of these issues. Also, the effect of Brexit on the upcoming earnings remains to be seen.
However, positives like low fuel prices, focus on business travelers with new initiatives like United Polaris and some headway in negotiations on employee contracts should boost the company's results and lead to margin expansion. Also, the company finally saw some improvement in June with growth in traffic.
Improved Guidance by the Company
The company recently raised its guidance for the second quarter. United Airlines expects consolidated PRASM in the second quarter to decline 6.50-6.75% (compared with previous band of 6.50-7.5%). Pre-tax margin is expected in the band of 14% to 14.5%. Fuel Price (inclusive of all cash settled hedges) is projected at $1.44 per gallon (old guidance: $1.45 to $1.50).
UNITED CONT HLD Price and EPS Surprise
UNITED CONT HLD Price and EPS Surprise | UNITED CONT HLD Quote
Earnings Whispers
Our proven model does not conclusively show that United Continental is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Most Accurate estimate stands at $2.54, while the Zacks Consensus Estimate is pegged at $2.53. Hence, the ESP is +0.40%.
Zacks Rank: The company carries a Zacks Rank #5 (Strong Sell).
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here is a stock you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter.
Latam Airlines Group S.A. LFL has an Earnings ESP of over 100% and a Zacks Rank #2.
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 >>
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
LATAM AIRLINES (LFL): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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Other companies like Airlines Group Inc. AAL and Delta Air Lines Inc. DAL too had to bear the brunt of these issues. Click to get this free report LATAM AIRLINES (LFL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In addition to internal issues, the global rise in terrorism has been a key reason behind plunging airline stock prices.
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Other companies like Airlines Group Inc. AAL and Delta Air Lines Inc. DAL too had to bear the brunt of these issues. Click to get this free report LATAM AIRLINES (LFL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. UNITED CONT HLD Price and EPS Surprise UNITED CONT HLD Price and EPS Surprise | UNITED CONT HLD Quote Earnings Whispers Our proven model does not conclusively show that United Continental is likely to beat on earnings this quarter.
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Click to get this free report LATAM AIRLINES (LFL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Other companies like Airlines Group Inc. AAL and Delta Air Lines Inc. DAL too had to bear the brunt of these issues. UNITED CONT HLD Price and EPS Surprise UNITED CONT HLD Price and EPS Surprise | UNITED CONT HLD Quote Earnings Whispers Our proven model does not conclusively show that United Continental is likely to beat on earnings this quarter.
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Other companies like Airlines Group Inc. AAL and Delta Air Lines Inc. DAL too had to bear the brunt of these issues. Click to get this free report LATAM AIRLINES (LFL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen.
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5223ddba-24fd-42a5-a710-c820fade893d
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7890.0
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2016-07-18 00:00:00 UTC
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FEX, AAL, NVDA, UAL: ETF Outflow Alert
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AAL
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https://www.nasdaq.com/articles/fex-aal-nvda-ual-etf-outflow-alert-2016-07-18
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Large Cap Core AlphaDEX Fund (Symbol: FEX) where we have detected an approximate $190.6 million dollar outflow -- that's a 11.1% decrease week over week (from 36,800,002 to 32,700,002). Among the largest underlying components of FEX, in trading today American Airlines Group Inc (Symbol: AAL) is up about 0.9%, NVIDIA Corp (Symbol: NVDA) is up about 0.6%, and United Continental Holdings Inc (Symbol: UAL) is higher by about 0.8%. For a complete list of holdings, visit the FEX Holdings page » The chart below shows the one year price performance of FEX, versus its 200 day moving average:
Looking at the chart above, FEX's low point in its 52 week range is $20.11 per share, with $46.69 as the 52 week high point - that compares with a last trade of $46.57. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
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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Among the largest underlying components of FEX, in trading today American Airlines Group Inc (Symbol: AAL) is up about 0.9%, NVIDIA Corp (Symbol: NVDA) is up about 0.6%, and United Continental Holdings Inc (Symbol: UAL) is higher by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Large Cap Core AlphaDEX Fund (Symbol: FEX) where we have detected an approximate $190.6 million dollar outflow -- that's a 11.1% decrease week over week (from 36,800,002 to 32,700,002). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of FEX, in trading today American Airlines Group Inc (Symbol: AAL) is up about 0.9%, NVIDIA Corp (Symbol: NVDA) is up about 0.6%, and United Continental Holdings Inc (Symbol: UAL) is higher by about 0.8%. For a complete list of holdings, visit the FEX Holdings page » The chart below shows the one year price performance of FEX, versus its 200 day moving average: Looking at the chart above, FEX's low point in its 52 week range is $20.11 per share, with $46.69 as the 52 week high point - that compares with a last trade of $46.57. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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Among the largest underlying components of FEX, in trading today American Airlines Group Inc (Symbol: AAL) is up about 0.9%, NVIDIA Corp (Symbol: NVDA) is up about 0.6%, and United Continental Holdings Inc (Symbol: UAL) is higher by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Large Cap Core AlphaDEX Fund (Symbol: FEX) where we have detected an approximate $190.6 million dollar outflow -- that's a 11.1% decrease week over week (from 36,800,002 to 32,700,002). For a complete list of holdings, visit the FEX Holdings page » The chart below shows the one year price performance of FEX, versus its 200 day moving average: Looking at the chart above, FEX's low point in its 52 week range is $20.11 per share, with $46.69 as the 52 week high point - that compares with a last trade of $46.57.
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Among the largest underlying components of FEX, in trading today American Airlines Group Inc (Symbol: AAL) is up about 0.9%, NVIDIA Corp (Symbol: NVDA) is up about 0.6%, and United Continental Holdings Inc (Symbol: UAL) is higher by about 0.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the First Trust Large Cap Core AlphaDEX Fund (Symbol: FEX) where we have detected an approximate $190.6 million dollar outflow -- that's a 11.1% decrease week over week (from 36,800,002 to 32,700,002). For a complete list of holdings, visit the FEX Holdings page » The chart below shows the one year price performance of FEX, versus its 200 day moving average: Looking at the chart above, FEX's low point in its 52 week range is $20.11 per share, with $46.69 as the 52 week high point - that compares with a last trade of $46.57.
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1539059a-4634-4919-9514-168dab16092e
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7891.0
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2016-07-18 00:00:00 UTC
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What's in Store for Hawaiian Airlines' (HA) Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/whats-in-store-for-hawaiian-airlines-ha-q2-earnings-2016-07-18
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nan
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nan
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Hawaiian Holdings Inc. , HA the parent company of Hawaiian Airlines, is scheduled to report second-quarter 2016 results on Jul 21, after the closing bell.
In the last quarter, the company recorded a positive 6.67% earnings surprise. Let's see how things are shaping up prior to this announcement.
Factors at Play This Quarter
Hawaiian Airlines has recently posted encouraging June traffic figures raising hopes that the airline's expansion efforts will boost top-line growth. Focused on growth, the airline announced a new flight between New Kona, Hawaii and Tokyo, Japan to be inaugurated in December.
The company recently issued a revised guidance for the second quarter, per which revenue per available seat mile and cost per seat mile (CASM) are expected to be on the favorable side compared to its previous issued guideline. Operating revenue per ASM is expected to grow by 1% to 2% instead of changing from -1.5% to 1.5%. CASM is expected to grow in the range of 3.5%-4.5% instead of 3.5%-6.5%.
However, the company could face increasing competition from major airlines such as American Airlines Group Inc. AAL and Delta Air Lines Inc. DAL . The company could also be impacted by low demand due to travelers getting concerned about terror attacks. It remains to be seen how the company performs amid these issues of uncertain demand and competition.
HAWAIIAN HLDGS Price and EPS Surprise
HAWAIIAN HLDGS Price and EPS Surprise | HAWAIIAN HLDGS Quote
Earnings Whispers
Our proven model does not conclusively show that Hawaiian Airlines is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: Since the Most Accurate estimate and Zacks Consensus Estimate both stand at $1.14, the ESP is 0.00%.
Zacks Rank: Hawaiian Holdings carries a Zacks Rank #3 (Hold).
Meanwhile, we caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stock to Consider
Here is a stock you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter.
Latam Airlines Group S.A. LFL has an Earnings ESP of over 100% and a Zacks Rank #2.
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 >>
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
LATAM AIRLINES (LFL): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
AMER AIRLINES (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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However, the company could face increasing competition from major airlines such as American Airlines Group Inc. AAL and Delta Air Lines Inc. DAL . Click to get this free report LATAM AIRLINES (LFL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Focused on growth, the airline announced a new flight between New Kona, Hawaii and Tokyo, Japan to be inaugurated in December.
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Click to get this free report LATAM AIRLINES (LFL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. However, the company could face increasing competition from major airlines such as American Airlines Group Inc. AAL and Delta Air Lines Inc. DAL . HAWAIIAN HLDGS Price and EPS Surprise HAWAIIAN HLDGS Price and EPS Surprise | HAWAIIAN HLDGS Quote Earnings Whispers Our proven model does not conclusively show that Hawaiian Airlines is likely to beat the Zacks Consensus Estimate this quarter.
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Click to get this free report LATAM AIRLINES (LFL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. However, the company could face increasing competition from major airlines such as American Airlines Group Inc. AAL and Delta Air Lines Inc. DAL . HAWAIIAN HLDGS Price and EPS Surprise HAWAIIAN HLDGS Price and EPS Surprise | HAWAIIAN HLDGS Quote Earnings Whispers Our proven model does not conclusively show that Hawaiian Airlines is likely to beat the Zacks Consensus Estimate this quarter.
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However, the company could face increasing competition from major airlines such as American Airlines Group Inc. AAL and Delta Air Lines Inc. DAL . Click to get this free report LATAM AIRLINES (LFL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, we caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
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034bf342-7d09-46ac-93b4-e6a016303721
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7892.0
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2016-07-15 00:00:00 UTC
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Delta Air Lines, Inc. (DAL): France Grounds Delta Stock for Now
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-inc.-dal%3A-france-grounds-delta-stock-for-now-2016-07-15
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nan
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nan
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InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
It is hard to consider the stock market woefully overvalued when there are so many stocks, even sectors, selling at such bargain prices. One such sector is the airlines. Delta Air Lines, Inc. (NYSE: DAL ) reported announcing earnings this week - $1.5 billion or $1.47 per fully diluted share, beating analyst estimates by 5 cents, on revenue of $10.4 billion - that gave Delta stock a nice bump on Thursday.
Source: via Delta
However, Delta stock was back down in Friday's morning trade, the result of a terrorist attack in Nice, France, that many now fear will cut travel and tourism. It was a full reversal over the previous day's optimism in DAL.
Delta Stock: The Ultimate Fear Value
Fear is the airlines' enemy. Fear of bankruptcy, fear of disruption, fear of unionized employees and competitors benefiting from government support, and of course fear of terrorism.
Right now, this means you can buy Delta stock for less than 7 times earnings. The whole group is in the same doldrums. You can buy Alaska Air Group, Inc. (NYSE: ALK ) for 9.4 times earnings. JetBlue Airways Corporation (NASDAQ: JBLU ) is at 8.5 times earnings. Southwest Airlines Co (NYSE: LUV ) - long considered the best-run of the major U.S. carriers, and one that would seemingly be immune to the French concerns given its domestic route structure - is available today for 12.7 times earnings. This in a market where the average P/E is 18.
10 Stocks With More Upside Than Apple Inc. (AAPL)
All the airlines listed in the paragraph above are well-regarded, with good management. Airlines that are not so well-regarded are being treated like wallpaper. American Airlines Group Inc (NASDAQ: AAL ) is selling for 3.2 times earnings. United Continental Holdings Inc. (NYSE: UAL ) is selling at 2.5 times earnings.
These kinds of values are not new. The airlines did get some gains early in the decade, after having gone through a near-death experience in the 2000s that drove most into bankruptcy (including Delta) and from which some, like American and United, are still recovering. But Delta has now been issuing a dividend since 2013, which has more than doubled since then and is now at 14 cents per share, yet since the start of 2015 the shares are actually down, by nearly 20%.
A Long-Term Bull Case
Delta management has been doing all it could against the losing streak. It has kept a good handle on expenses, and is running planes that are, on average, 85% full. Delta recently said it was ahead of schedule on the repurchase of $5 billion in Delta stock, on a $32 billion market cap.
No trend is forever. Everything reverts, in time, to a mean. Delta has been operated well for nearly a decade now, since its merger with Northwest in 2008 made it the world's largest carrier. It is hard for me to see the stock falling far from here, so your risk in owning Delta stock seems minimal.
On the other hand, it's possible I'm trying to argue with myself in this story.
I bought into DAL a year ago for my retirement account and I'm sitting on a loss of 10%, less reinvested dividends. Yet I can't find a reason to pull the trigger and take the loss. I think we're closer to the end of the terrorist threat than the beginning, and once people realize this the airlines are going to fly again.
Dana Blankenhornis a financial journalist who dabbles in fiction, his latest beingThe Reluctant Detective Travels in Time . Write him at danablankenhorn@gmail.comor follow him on Twitter at @danablankenhorn .As of this writing, he was long DAL.
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The post Delta Air Lines, Inc. (DAL): France Grounds Delta Stock for Now 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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American Airlines Group Inc (NASDAQ: AAL ) is selling for 3.2 times earnings. Southwest Airlines Co (NYSE: LUV ) - long considered the best-run of the major U.S. carriers, and one that would seemingly be immune to the French concerns given its domestic route structure - is available today for 12.7 times earnings. The airlines did get some gains early in the decade, after having gone through a near-death experience in the 2000s that drove most into bankruptcy (including Delta) and from which some, like American and United, are still recovering.
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American Airlines Group Inc (NASDAQ: AAL ) is selling for 3.2 times earnings. Delta Air Lines, Inc. (NYSE: DAL ) reported announcing earnings this week - $1.5 billion or $1.47 per fully diluted share, beating analyst estimates by 5 cents, on revenue of $10.4 billion - that gave Delta stock a nice bump on Thursday. More From InvestorPlace Herbalife: HLF Stock Is Bill Ackman's Four-Year Failure TWTR Stock: Twitter's Content Strategy Looks Like a Dud 10 Stellar Dow Jones Stocks to Buy for Q3 The post Delta Air Lines, Inc. (DAL): France Grounds Delta Stock for Now appeared first on InvestorPlace .
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American Airlines Group Inc (NASDAQ: AAL ) is selling for 3.2 times earnings. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips It is hard to consider the stock market woefully overvalued when there are so many stocks, even sectors, selling at such bargain prices. Delta Air Lines, Inc. (NYSE: DAL ) reported announcing earnings this week - $1.5 billion or $1.47 per fully diluted share, beating analyst estimates by 5 cents, on revenue of $10.4 billion - that gave Delta stock a nice bump on Thursday.
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American Airlines Group Inc (NASDAQ: AAL ) is selling for 3.2 times earnings. Right now, this means you can buy Delta stock for less than 7 times earnings. You can buy Alaska Air Group, Inc. (NYSE: ALK ) for 9.4 times earnings.
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fd7aafa3-300c-43a6-8496-415ede449cb6
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7893.0
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2016-07-15 00:00:00 UTC
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American Airlines Needs to Get Its Costs Under Control
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AAL
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https://www.nasdaq.com/articles/american-airlines-needs-get-its-costs-under-control-2016-07-15
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nan
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nan
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Investors have spent much of the past year and a half panicking about American Airlines '(NASDAQ: AAL) unit revenue trajectory, amid rising competition from ultra-low-cost carriers.
What they really should be worried about is American Airlines' cost performance. Unit revenue is gradually starting to recover due to slowing industry capacity growth and improving conditions in Brazil -- although the impact of Brexit is still to be seen. By contrast, American Airlines increased its unit cost guidance for the second time this year on Wednesday, raising serious questions about its cost discipline.
Cost guidance rises once
At the beginning of 2016, American Airlines projected that its mainline adjusted unit costs (excluding fuel and special items) would rise a relatively modest 1%-3% this year. However, since then, the company's cost estimates have increased significantly.
American Airlines has increased its cost guidance twice this year. Image source: American Airlines.
American raised its cost outlook for the first time in April. At that point, it expected mainline adjusted cost per available seat mile to rise 3%-5% for the full year. There were two main reasons for the increased cost guidance.
First, American Airlines' dispatchers ratified a new contract agreement that month, locking in big raises that went into effect immediately. Second, American Airlines decided in late March to implement a 5% profit sharing plan beginning this year. Based on the company's 2015 adjusted pre-tax profit of $6.3 billion, a 5% profit sharing payout would have exceeded $300 million.
Cost guidance rises again
On Tuesday, American Airlines increased its cost guidance yet again. The company now expects mainline adjusted unit costs to rise 4%-6% for the full year, including a 6%-8% increase in Q3 and a 5%-7% increase in Q4.
There are likely two main reasons for this additional increase in American Airlines' cost profile. First, American has decided to reduce its capacity plans to better match demand. It now intends to increase its mainline capacity about 1% this year, compared to its initial plan to grow capacity by about 2%. Lower capacity means higher unit costs, as fixed expenses are spread over fewer passengers.
The second reason is related to the first. Due in part to lower growth projections for the next few years, American Airlines decided in May to accelerate the retirement of 37 jets to the 2017-2019 period. The company will likely need to report higher depreciation costs from now until those planes leave its fleet.
American Airlines needs to fix this soon
In the past few years, the legacy carriers have frequently stated that they want to keep non-fuel unit cost growth at or below the rate of inflation -- which they usually estimate at 2%. Clearly, American Airlines will be nowhere close in 2016.
This comes after mainline non-fuel unit costs rose 4.2% in 2015 (excluding special items). But at least 2015's cost inflation could be traced largely to a 23% pilot pay increase that went into effect that year. By contrast, the 2016 cost creep seems more broad-based.
American Airlines ought to be reaping cost synergies from the US Airways merger by now. Instead, mainline head count has risen by nearly 10% since the merger was completed, even though American's revenue is expected to be slightly lower in 2016 than it was during 2013.
In fact, American Airlines went on a hiring spree in 2015, as described by the Fort Worth Star-Telegram . Part of its head-count increase was meant to improve reliability. Other employees were hired to help smooth the transition to a new reservations system last October.
With most major integration activities now complete, American should be able to cut costs by reducing its head count, but this hasn't happened so far. Meanwhile, American's chief rival Delta Air Lines generates the same revenue -- with higher reliability -- despite having about 15% fewer mainline employees.
Particularly given its penchant for "upgauging" to larger jets within its fleet, American Airlines should be able to operate more capacity with less labor. Management needs to demonstrate a clear plan for doing so as soon as possible.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
Adam Levine-Weinberg is long January 2017 $30 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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Investors have spent much of the past year and a half panicking about American Airlines '(NASDAQ: AAL) unit revenue trajectory, amid rising competition from ultra-low-cost carriers. Unit revenue is gradually starting to recover due to slowing industry capacity growth and improving conditions in Brazil -- although the impact of Brexit is still to be seen. American Airlines needs to fix this soon In the past few years, the legacy carriers have frequently stated that they want to keep non-fuel unit cost growth at or below the rate of inflation -- which they usually estimate at 2%.
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Investors have spent much of the past year and a half panicking about American Airlines '(NASDAQ: AAL) unit revenue trajectory, amid rising competition from ultra-low-cost carriers. Cost guidance rises once At the beginning of 2016, American Airlines projected that its mainline adjusted unit costs (excluding fuel and special items) would rise a relatively modest 1%-3% this year. The company now expects mainline adjusted unit costs to rise 4%-6% for the full year, including a 6%-8% increase in Q3 and a 5%-7% increase in Q4.
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Investors have spent much of the past year and a half panicking about American Airlines '(NASDAQ: AAL) unit revenue trajectory, amid rising competition from ultra-low-cost carriers. By contrast, American Airlines increased its unit cost guidance for the second time this year on Wednesday, raising serious questions about its cost discipline. Cost guidance rises once At the beginning of 2016, American Airlines projected that its mainline adjusted unit costs (excluding fuel and special items) would rise a relatively modest 1%-3% this year.
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Investors have spent much of the past year and a half panicking about American Airlines '(NASDAQ: AAL) unit revenue trajectory, amid rising competition from ultra-low-cost carriers. American Airlines has increased its cost guidance twice this year. The company now expects mainline adjusted unit costs to rise 4%-6% for the full year, including a 6%-8% increase in Q3 and a 5%-7% increase in Q4.
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4e1cf90b-d5f0-4b5a-9d37-cb178b39be0b
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7894.0
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2016-07-15 00:00:00 UTC
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What Investors Might Have Missed in the Market This Week
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AAL
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https://www.nasdaq.com/articles/what-investors-might-have-missed-market-week-2016-07-15
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nan
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nan
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Stocks in the U.S. markets gave up some of the week's gains on Friday, after moving higher for four sessions that sent the major indexes to record highs. The recent jobs report and a healthy gain in U.S. retail sales in June paved the way for the markets to brush off Brexit concerns, at least for now. The S&P 500 (SNPINDEX: ^GSPC) and Dow Jones Industrial Average (DJINDICES: ^DJI) moved 1.52% and 2.08% higher, respectively, for the week.
Let's take a look at automotive sales in Europe to better understand the impact of the U.K.'s decision to leave the European Union, as well as some other big headlines in the stock market this week.
European auto sales
The markets got a small glimpse of the initial impact of the Brexit decision as European car sales growth slowed in June, mostly due to deteriorating consumer confidence. Registrations in the EU and EFTA (European Free Trade Association) markets moved 6.5% higher in June, to a total of 1.51 million units, according to the ACEA (European Automobile Manufacturers Association) on Friday.
At the moment, it really depends if you're a glass-half-full, or a glass-half-empty type of person. On one hand, industry sales still increased by a fair amount and June marked the 34 th consecutive month of automotive sales gains in Europe. On the other hand, June was also the slowest growth rate during the second quarter, and the 6.5% increase was below the first-half sales gain of 9.1%.
Unfortunately, this is likely merely a small glimpse into the overall impact of Brexit.
"The full impact will be seen during 2017 and 2018 when registrations reflect customers' decisions taken after the Brexit vote," Automotive News paraphrased Carlos Da Silva, manager of IHS Automotive European light-vehicle sales forecasts, as saying. "However, without any precise road map of how and when the UK will leave the EU, it is very hard to be specific about possible influencing factors," he was quoted as saying.
SAGE Therapeutics announced positive news with its phase 2 clinical trial of SAGE-547, a potential treatment for severe postpartum depression (PPD). More specifically, data from the study showed that 70% of the patients that used SAGE-547 were in remission from their depression at the 60-hour mark, or the primary endpoint of the trial - the placebo group observed a 10% remission. Even better, though, was that the rate of remission was similar during a 30-day follow-up visit.
It was significant enough for Dr. Samantha Meltzer-Brody, the primary investigator for the trial, to say: "This is potentially one of the most important clinical findings in the pharmacologic treatment of postpartum depression to date."
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
Daniel Miller owns shares of Ford. The Motley Fool owns shares of and recommends Ford. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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Let's take a look at automotive sales in Europe to better understand the impact of the U.K.'s decision to leave the European Union, as well as some other big headlines in the stock market this week. SAGE Therapeutics announced positive news with its phase 2 clinical trial of SAGE-547, a potential treatment for severe postpartum depression (PPD). It was significant enough for Dr. Samantha Meltzer-Brody, the primary investigator for the trial, to say: "This is potentially one of the most important clinical findings in the pharmacologic treatment of postpartum depression to date."
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European auto sales The markets got a small glimpse of the initial impact of the Brexit decision as European car sales growth slowed in June, mostly due to deteriorating consumer confidence. Registrations in the EU and EFTA (European Free Trade Association) markets moved 6.5% higher in June, to a total of 1.51 million units, according to the ACEA (European Automobile Manufacturers Association) on Friday. 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 take a look at automotive sales in Europe to better understand the impact of the U.K.'s decision to leave the European Union, as well as some other big headlines in the stock market this week. European auto sales The markets got a small glimpse of the initial impact of the Brexit decision as European car sales growth slowed in June, mostly due to deteriorating consumer confidence. Registrations in the EU and EFTA (European Free Trade Association) markets moved 6.5% higher in June, to a total of 1.51 million units, according to the ACEA (European Automobile Manufacturers Association) on Friday.
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European auto sales The markets got a small glimpse of the initial impact of the Brexit decision as European car sales growth slowed in June, mostly due to deteriorating consumer confidence. The Motley Fool owns shares of and recommends Ford. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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17225e79-6fd6-43d7-b9f7-875eb113a039
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7895.0
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2016-07-15 00:00:00 UTC
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Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2'16
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AAL
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https://www.nasdaq.com/articles/delta-continues-face-headwinds-revenues-delivers-earnings-growth-q216-2016-07-15
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nan
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nan
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Delta Air Lines ( DAL ) released its June 2016 financial results on 14th July 2016, missing the consensus estimate for revenue slightly. This decline in revenue is attributable to the continued foreign currency headwinds from a strong dollar and yield pressures in the North Atlantic. In terms of bottom line, profits soared, growing 11% year on year (y-o-y) owing to lower fuel expense (-17% y-o-y) and the airline's share buyback program.
Despite the decline in revenue, Delta's share price saw an upward trajectory, likely due to the company's target to achieve positive unit revenue by the end of the year. To this end, the airline cut its Q4 capacity growth guidance by 1 percentage point, primarily in its international markets.
Overall, the system capacity growth guidance for the second half of the year was less than 2%, mainly due to cut backs in the UK capacity (-6%).
Moreover, Delta said that it expects unit revenue (PRASM) to be weak in July and August, steadily improving in September, the company's best month traditionally.
Have more questions about Delta Air Lines ( DAL )? See the links below:
Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues
Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16
What Should We Expect From Delta's 1Q'16 Results?
How Did The Legacy Carriers Perform Operationally In January?
Why Did Delta's Operating Margin Soar In 2015?
Delta Air Lines: The Year 2015 In Review
How Will Delta's Revenue And EBITDA Grow Between 2015 and 2018?
How Has Delta's Revenue And EBITDA Changed Over The Last Five Years?
What Is Delta's Revenue And EBITDA Brekdown?
What Is Delta's Fundamental Value Based On Estimated 2016 Numbers?
How Has Delta's Revenue And EBITDA Composition Changed Over The Last Five Years?
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 Delta Air Lines Limited
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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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Delta Air Lines ( DAL ) released its June 2016 financial results on 14th July 2016, missing the consensus estimate for revenue slightly. Moreover, Delta said that it expects unit revenue (PRASM) to be weak in July and August, steadily improving in September, the company's best month traditionally. For precise figures, please refer to our complete analysis for Delta Air Lines Limited View Interactive Institutional Research (Powered by Trefis): Global Large Cap | U.S.
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In terms of bottom line, profits soared, growing 11% year on year (y-o-y) owing to lower fuel expense (-17% y-o-y) and the airline's share buyback program. See the links below: Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16 What Should We Expect From Delta's 1Q'16 Results? 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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Despite the decline in revenue, Delta's share price saw an upward trajectory, likely due to the company's target to achieve positive unit revenue by the end of the year. See the links below: Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16 What Should We Expect From Delta's 1Q'16 Results? Delta Air Lines: The Year 2015 In Review How Will Delta's Revenue And EBITDA Grow Between 2015 and 2018?
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Delta Air Lines ( DAL ) released its June 2016 financial results on 14th July 2016, missing the consensus estimate for revenue slightly. Why Did Delta's Operating Margin Soar In 2015? Delta Air Lines: The Year 2015 In Review How Will Delta's Revenue And EBITDA Grow Between 2015 and 2018?
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dae379d8-667f-47db-8567-5ee1a8edc681
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7896.0
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2016-07-14 00:00:00 UTC
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American Airlines (AAL) June Traffic Up, Guidance Revised
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-june-traffic-up-guidance-revised-2016-07-14
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nan
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nan
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American Airlines Group Inc.AAL , based in Fort Worth TX, reported a modest growth in air traffic in the month of June. Traffic measured in revenue passenger miles (RPMs) - was 20.9 billion, up 2.2% from 20.4 billion recorded in last June.
On a year-over-year basis, consolidated capacity (available seat miles/ASMs) inched up 2.8% to 24.6 billion. However, the load factor or the percentage of seats filled by passengers decreased to 84.9% from 85.4% in Jun 2015, as capacity expansion exceeded traffic growth.
In the first six months of 2016, American Airlines on a year-over-year basis recorded 1.9% growth in RPMs to 110.1 billion, while ASMs inched up 2.7% to 135.8 billion. Also, the load factor declined 60 basis points year-over-year to 81.1%. Moreover, total passenger count (Enplanements) remained increased 1% in June and increased 0.5% in the first six months of 2016.
We believe that the company's route expansion plans, introduction of ancillary products and improvement of customer service bode well for the future. Further, the company has been reaping considerable benefits from its joint ventures and code share agreements.
Guidance Trimmed
American Airlines anticipates its PRASM (passenger revenue per available seat mile: a key measure of unit revenue) to decline in the band of 6%-7% for the second quarter of 2016. The company continues to expect a pre-tax margin of 14-16% for the second quarter.
The decrease in PRASM is most likely due to the of higher capacity growth amid a drab demand environment. The carrier's totally capacity is expected to rise by 2% from the year ago level (down 0.5 points from previous guidance). Fuel price (mainline: inclusive of taxes) is projected in the band of $1.39 to $1.44 per gallon for the second quarter.
Improved Loyalty Program and Wi-Fi Service
American Airlines recently announced changes to its award-winning AAdvantage customer loyalty program. The company will begin to award miles based on the price of tickets instead of distance. The redesigned program will become effective as of Aug 1, 2016.
In order to improve the Wireless services available to its customers, American Airlines recently selected ViaSat Inc. VSAT to provide Wi-Fi services on its Boeing 737 MAX fleet. The award-winning company is expected to provide a much faster, optimized and high quality Internet service to American Airlines' passengers.
Zacks Rank & Stocks to Consider
American Airlines currently carries a Zacks Rank #5 (Strong Sell). Better-ranked stocks in the same space include GOL Linhas GOL and Air France-KLM SA AFLYY . Both companies carry a Zacks Rank #2 (Strong Buy).
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 >>
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GOL LINHAS-ADR (GOL): Free Stock Analysis Report
AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report
VIASAT INC (VSAT): Free Stock Analysis Report
AMER AIRLINES (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 Inc.AAL , based in Fort Worth TX, reported a modest growth in air traffic in the month of June. Click to get this free report GOL LINHAS-ADR (GOL): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report VIASAT INC (VSAT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. However, the load factor or the percentage of seats filled by passengers decreased to 84.9% from 85.4% in Jun 2015, as capacity expansion exceeded traffic growth.
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Click to get this free report GOL LINHAS-ADR (GOL): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report VIASAT INC (VSAT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL , based in Fort Worth TX, reported a modest growth in air traffic in the month of June. Improved Loyalty Program and Wi-Fi Service American Airlines recently announced changes to its award-winning AAdvantage customer loyalty program.
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Click to get this free report GOL LINHAS-ADR (GOL): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report VIASAT INC (VSAT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL , based in Fort Worth TX, reported a modest growth in air traffic in the month of June. In the first six months of 2016, American Airlines on a year-over-year basis recorded 1.9% growth in RPMs to 110.1 billion, while ASMs inched up 2.7% to 135.8 billion.
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American Airlines Group Inc.AAL , based in Fort Worth TX, reported a modest growth in air traffic in the month of June. Click to get this free report GOL LINHAS-ADR (GOL): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report VIASAT INC (VSAT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Traffic measured in revenue passenger miles (RPMs) - was 20.9 billion, up 2.2% from 20.4 billion recorded in last June.
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7442abc0-0bc9-4eb5-b7e4-833cee054674
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7897.0
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2016-07-13 00:00:00 UTC
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Airline Stocks Surged on Tuesday: Here's Why
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AAL
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https://www.nasdaq.com/articles/airline-stocks-surged-tuesday-heres-why-2016-07-13
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nan
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nan
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Airline stocks flew higher on Tuesday, led by the three legacy carriers. American Airlines (NASDAQ: AAL) stock soared 11.2%, United Continental (NYSE: UAL) shares jumped 8.8%, and Delta Air Lines (NYSE: DAL) stock rose "only" 5.5%.
There were three immediate catalysts behind airlines' big day. However, at a high level, what really happened on Tuesday was that investors finally realized that their recent panic regarding airline stocks had been overdone. Indeed, even after the big gains on Tuesday, shares of American Airlines, Delta Air Lines, and United Continental are still down by double digits during the past three months.
Airline Stock Performance, data by YCharts .
United Continental boosts its guidance, again
The first catalyst for airline stocks was an investor update released by United Continental late on Monday. Back in April, the company had projected that its passenger revenue per available seat mile (PRASM) would fall 6.5%-8.5% in Q2. This implied that United's PRASM trajectory might take a turn for the worse, relative to its 7.4% decline in Q1.
In June, United updated its guidance, estimating that PRASM would decrease 6.5%-7.5% in Q2. Monday's investor update narrowed that guidance range, again. United now expects PRASM to decline 6.5%-6.75% in Q2.
That's still a significant drop, but it's the best investors could have hoped for based on United's original guidance. Furthermore, the updated guidance implies that PRASM improved sequentially, after all. That helped give investors more confidence that airlines will start to stem their unit-revenue declines in the second half of the year.
American Airlines bags a new credit-card agreement
A second catalyst was American Airlines' announcement that it had extended its co-branded credit card agreements with Citigroup and Barclays . The updated agreements incorporate significant compensation improvements for American Airlines.
American Airlines signed a lucrative extension to its credit-card agreements. Image source: American Airlines.
In fact, American estimated that its pre-tax income will rise by $200 million in the second half of 2016, by $550 million in 2017, and by a whopping $800 million in 2018, relative to what it would have earned under the prior credit-card agreements.
This incremental revenue will improve American's profit margin by roughly 2 percentage points by 2018. That's a big reason why American Airlines stock posted the biggest gain on Tuesday.
All three legacy carriers got an analyst upgrade
Finally, analyst Michael Linenberg of Deutsche Bank upgraded shares of American Airlines, Delta Air Lines, and United Continental to buy ratings on Tuesday morning. Linenberg noted that slowing capacity growth and the stabilization of the dollar against most other currencies should drive better unit-revenue performance for the legacy carriers.
Linenberg also observed that all three legacy-carrier stocks have been trading at rock-bottom valuations recently. He reasoned that this left little downside for investors, whereas signs of unit-revenue improvement could spark a quick rally in airline stocks.
Nothing shocking happened
Thus, airline stocks got a bunch of good news recently, catalyzing Tuesday's rally. But there were no huge surprises. For example, American, Delta, and United have all been telling investors for months that unit-revenue trends would start to improve soon -- it just hadn't happened up until now.
Similarly, American Airlines executives told investors months ago that the company would, at some point, reap a big financial windfall by signing a new credit-card agreement. And of course, the low valuations across all airline stocks have been plain to see.
In short, airline stocks have been dragged down by gloomy sentiment this year. This week, investors got a reminder that airlines' earnings won't necessarily crash at the first sign of economic weakness. However, for airline stocks to fully recover, American, Delta, and United will need to show much-more progress toward their ultimate goal of returning to unit-revenue growth.
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Adam Levine-Weinberg owns shares of United Continental Holdings and is long January 2017 $30 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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) stock soared 11.2%, United Continental (NYSE: UAL) shares jumped 8.8%, and Delta Air Lines (NYSE: DAL) stock rose "only" 5.5%. Indeed, even after the big gains on Tuesday, shares of American Airlines, Delta Air Lines, and United Continental are still down by double digits during the past three months. Similarly, American Airlines executives told investors months ago that the company would, at some point, reap a big financial windfall by signing a new credit-card agreement.
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American Airlines (NASDAQ: AAL) stock soared 11.2%, United Continental (NYSE: UAL) shares jumped 8.8%, and Delta Air Lines (NYSE: DAL) stock rose "only" 5.5%. All three legacy carriers got an analyst upgrade Finally, analyst Michael Linenberg of Deutsche Bank upgraded shares of American Airlines, Delta Air Lines, and United Continental to buy ratings on Tuesday morning. Adam Levine-Weinberg owns shares of United Continental Holdings and is long January 2017 $30 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines.
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American Airlines (NASDAQ: AAL) stock soared 11.2%, United Continental (NYSE: UAL) shares jumped 8.8%, and Delta Air Lines (NYSE: DAL) stock rose "only" 5.5%. United Continental boosts its guidance, again The first catalyst for airline stocks was an investor update released by United Continental late on Monday. American Airlines bags a new credit-card agreement A second catalyst was American Airlines' announcement that it had extended its co-branded credit card agreements with Citigroup and Barclays .
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American Airlines (NASDAQ: AAL) stock soared 11.2%, United Continental (NYSE: UAL) shares jumped 8.8%, and Delta Air Lines (NYSE: DAL) stock rose "only" 5.5%. Indeed, even after the big gains on Tuesday, shares of American Airlines, Delta Air Lines, and United Continental are still down by double digits during the past three months. For example, American, Delta, and United have all been telling investors for months that unit-revenue trends would start to improve soon -- it just hadn't happened up until now.
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586693f6-67be-471b-9218-9829da91877a
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7898.0
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2016-07-12 00:00:00 UTC
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S&P 500 Movers: FAST, STX
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AAL
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https://www.nasdaq.com/articles/sp-500-movers-fast-stx-2016-07-12
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nan
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nan
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In early trading on Tuesday, shares of Seagate Technology pc ( STX ) topped the list of the day's best performing components of the S&P 500 index, trading up 20.3%. Year to date, Seagate Technology has lost about 20.9% of its value.
And the worst performing S&P 500 component thus far on the day is Fastenal ( FAST ), trading down 2.6%. Fastenal is showing a gain of 8.3% looking at the year to date performance.
Two other components making moves today are Newmont Mining ( NEM ), trading down 2.3%, and American Airlines Group ( AAL ), trading up 8.7% on the day.
VIDEO: S&P 500 Movers: FAST, STX
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 Newmont Mining ( NEM ), trading down 2.3%, and American Airlines Group ( AAL ), trading up 8.7% on the day. In early trading on Tuesday, shares of Seagate Technology pc ( STX ) topped the list of the day's best performing components of the S&P 500 index, trading up 20.3%. And the worst performing S&P 500 component thus far on the day is Fastenal ( FAST ), trading down 2.6%.
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Two other components making moves today are Newmont Mining ( NEM ), trading down 2.3%, and American Airlines Group ( AAL ), trading up 8.7% on the day. Year to date, Seagate Technology has lost about 20.9% of its value. VIDEO: S&P 500 Movers: FAST, STX 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 Newmont Mining ( NEM ), trading down 2.3%, and American Airlines Group ( AAL ), trading up 8.7% on the day. In early trading on Tuesday, shares of Seagate Technology pc ( STX ) topped the list of the day's best performing components of the S&P 500 index, trading up 20.3%. VIDEO: S&P 500 Movers: FAST, STX 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 Newmont Mining ( NEM ), trading down 2.3%, and American Airlines Group ( AAL ), trading up 8.7% on the day. In early trading on Tuesday, shares of Seagate Technology pc ( STX ) topped the list of the day's best performing components of the S&P 500 index, trading up 20.3%. And the worst performing S&P 500 component thus far on the day is Fastenal ( FAST ), trading down 2.6%.
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2ddfb996-0bd1-4287-be7f-bd312734cfc6
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7899.0
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2016-07-12 00:00:00 UTC
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Transportation Stocks to Post Earnings This Week: CSX, DAL
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AAL
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https://www.nasdaq.com/articles/transportation-stocks-to-post-earnings-this-week%3A-csx-dal-2016-07-12
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nan
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nan
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The transportation sector is facing turbulent times, courtesy multiple headwinds like the rise in terror attacks, decline in coal shipments and the Brexit vote. The gloomy scenario is well reflected by our earnings preview report which has predicted a 13.1% year-over-year earnings decline for the sector in the second quarter. The top line is expected to shrink 1.4% in the quarter.
In fact, transportation is not the only sector expected to post dismal numbers in the second quarter as 9 of the 16 Zacks sectors are expected to show earnings deceleration. According to the above report, total earnings for the S&P 500 companies are expected to decline 6.2% and the top line is projected to contract 0.6% due to global concerns. In the event of the forecast coming true, this would be the fifth consecutive quarter of earnings deterioration for the S&P 500 players.
Coming back to transportation sector, despite oil being relatively cheap (around $45 a barrel which is way below the levels of mid-2014), the gloomy projection for the sector suggests that the prevalent headwinds will hurt the results big time. The sector is highly diversified including airlines, truckers, shippers and railroads. Despite the tough environment, FedEx Corporation FDX had performed reasonably well in its latest earnings release , outshining the Zacks Consensus Estimate with respect to revenues as well as earnings.
The ongoing week will see two other transportation players -- railroad operator CSX Corporation CSX and airline behemoth Delta Air Lines DAL -- unveiling their respective second quarter numbers. Let's take a look at the possibilities of a beat or miss these players have.
Delta Air Lines is scheduled to report second-quarter 2016 results on Jul 14, before the market opens. With this, Delta will kick off the earnings season in the airline sector, which will see a flood of earnings reports next week with the likes of Southwest Airlines LUV and American Airlines Group AAL reporting.
Delta, based in Atlanta, GA, had reported better-than-expected earnings in the first quarter of 2016 on the back of low fuel costs. In fact, the carrier reported better-than-expected earnings in three of the last four quarters, the average beat being 1.84% (read more: Why Q2 Earnings Could Be Dampening for Delta Stock ).
CSX Corporation is scheduled to report second-quarter 2016 results on Jul 13, after markets close. The company has an Earnings ESP of 2.27% and a Zacks Rank #3 (Hold). Our model had not predicted an earnings beat initially but the current combination of positive ESP and Zacks Rank #3 hint at a beat in the to-be-reported quarter.
The company, based in Jacksonville, FL, outshined the Zacks Consensus Estimate in three of the last four quarters at an average of 3.50%. (read more: Can CSX Corp Pull a Surprise this Earnings Season? ).
Stay tuned! Check later on our full write-up on earnings releases of these stocks.
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SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
CSX CORP (CSX): Free Stock Analysis Report
FEDEX CORP (FDX): Free Stock Analysis Report
AMER AIRLINES (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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With this, Delta will kick off the earnings season in the airline sector, which will see a flood of earnings reports next week with the likes of Southwest Airlines LUV and American Airlines Group AAL reporting. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The transportation sector is facing turbulent times, courtesy multiple headwinds like the rise in terror attacks, decline in coal shipments and the Brexit vote.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. With this, Delta will kick off the earnings season in the airline sector, which will see a flood of earnings reports next week with the likes of Southwest Airlines LUV and American Airlines Group AAL reporting. Despite the tough environment, FedEx Corporation FDX had performed reasonably well in its latest earnings release , outshining the Zacks Consensus Estimate with respect to revenues as well as earnings.
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With this, Delta will kick off the earnings season in the airline sector, which will see a flood of earnings reports next week with the likes of Southwest Airlines LUV and American Airlines Group AAL reporting. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, the carrier reported better-than-expected earnings in three of the last four quarters, the average beat being 1.84% (read more: Why Q2 Earnings Could Be Dampening for Delta Stock ).
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report CSX CORP (CSX): Free Stock Analysis Report FEDEX CORP (FDX): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. With this, Delta will kick off the earnings season in the airline sector, which will see a flood of earnings reports next week with the likes of Southwest Airlines LUV and American Airlines Group AAL reporting. The ongoing week will see two other transportation players -- railroad operator CSX Corporation CSX and airline behemoth Delta Air Lines DAL -- unveiling their respective second quarter numbers.
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4a0d845a-50fb-4c35-908a-c8e37e00f7a9
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