Global airline American Airlines (NASDAQ: AAL) will be reporting results this Thursday before the bell. Here’s what to look for.
American Airlines met analysts’ revenue expectations last quarter, reporting revenues of $12.55 billion, flat year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and EPS guidance for next quarter missing analysts’ expectations significantly. It reported 56.36 billion revenue passenger miles, down 1.9% year on year.
Is American Airlines a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting American Airlines’s revenue to be flat year on year at $14.3 billion, slowing from the 2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.77 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 6 downward revisions over the last 30 days (we track 13 analysts). American Airlines has missed Wall Street’s revenue estimates three times over the last two years.
Looking at American Airlines’s peers in the travel and vacation providers segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 9.5%, beating analysts’ expectations by 1.7%, and Delta reported flat revenue, topping estimates by 1.5%. Carnival traded up 5.9% following the results while Delta was also up 11.9%.
Read our full analysis of Carnival’s results here and Delta’s results here.
There has been positive sentiment among investors in the travel and vacation providers segment, with share prices up 13.9% on average over the last month. American Airlines is up 14.9% during the same time and is heading into earnings with an average analyst price target of $13.70 (compared to the current share price of $12.52).
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