Global airline American Airlines (NASDAQ: AAL) will be reporting earnings this Thursday before market hours. Here’s what investors should know.
American Airlines met analysts’ revenue expectations last quarter, reporting revenues of $16.74 billion, up 16.3% year on year. It was a slower quarter for the company, with EPS guidance for next quarter missing analysts’ expectations significantly. It reported 68.12 billion revenue passenger miles, up 3.6% year on year.
Is American Airlines a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting American Airlines’s revenue to grow 18.6% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. American Airlines rarely misses Wall Street’s revenue estimates.
Looking at American Airlines’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 3.5%, beating analysts’ expectations by 1.1%, and United Airlines reported revenues up 17.4%, in line with consensus estimates. Carnival traded up 10.8% following the results.
Read our full analysis of Carnival’s results here and United Airlines’s results here.
Investors in the consumer discretionary - travel and vacation providers segment have had steady hands going into earnings, with share prices flat over the last month. American Airlines is down 10.8% during the same time and is heading into earnings with an average analyst price target of $15.71 (compared to the current share price of $12.10).
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