Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. This airline is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of +185.1%.
Alaska Air now expects the fuel cost per gallon in the $3.15-$3.25 band (the earlier guidance was in the $2.7-$2.8 range). This quarterly report represents an earnings surprise of 11.11%. A quarter ago, it was expected that this airline would post a loss of $0.48 per share when it actually produced a loss of $0.62, delivering a surprise of -29.17%.
The Zacks Consensus Estimate for Alaska Air’s third-quarter 2023 revenues is pegged at $2.88 billion, indicating 1.7% growth year over year. The top line is likely to have been aided bycontinued recovery in air-travel demand. The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missing once, the average miss being 2.72%. The Zacks Consensus Estimate for third-quarter earnings has been revised 33.3% upward over the past 90 days. Alaska Air, which belongs to the Zacks Transportation – Airline industry, posted revenues of $2.84 billion for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 2.07%. The company has topped consensus revenue estimates two times over the last four quarters.
Alaska Airlines has created a coffee that it says tastes better in the sky
Alaska reported adjusted earnings of $3 per share on revenue of $2.84 billion, topping the consensus estimate of $2.70 per share on $2.77 billion in sales. 10 Wall Street equities research analysts have issued “buy,” “hold,” and “sell” ratings for Alaska Air Group in the last twelve months. There are currently 1 hold rating, 8 buy ratings and 1 strong buy rating for the stock. The consensus among Wall Street equities research analysts is that investors should “buy” ALK shares.
- On the back of upbeat air-travel demand and favorable pricing, the company expects to boost its fleet and workforce to meet the anticipated high demand.
- 391 employees have rated Alaska Air Group Chief Executive Officer Bradley D. Tilden on Glassdoor.com.
- The scores are based on the trading styles of Value, Growth, and Momentum.
- Tuesday is a tough day for long-term holders, but Alaska remains well positioned to outperform its peers over the long term.
As of September 30th, there was short interest totaling 4,320,000 shares, an increase of 14.9% from the September 15th total of 3,760,000 shares. Based on an average daily volume of 1,930,000 shares, the days-to-cover ratio is currently 2.2 days. The Zacks Consensus Estimate for ODFL’s third-quarter 2023 earnings has been revised upward by 1.4% in the past 90 days. ODFL delivered a trailing four-quarter earnings surprise of 3.86%, on average.
Research Reports for ALK
The company issued revenue guidance of $2.86 billion-$2.88 billion, compared to the consensus revenue estimate of $2.88 billion. The top line jumped 7% year over year, with passenger revenues accounting for 91.5% of the top line and increasing 7% due to continued recovery in air-travel demand. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.85 on $2.87 billion in revenues for the coming quarter and $6.56 on $10.47 billion in revenues for the current fiscal year. Alaska Air Group saw a increase in short interest in the month of September.
Room to Run: Why This Bull Market May Be Just Getting Started
According to 10 analysts, the average rating for ALK stock is “Strong Buy.” The 12-month stock price forecast is $61.47, which is an increase of 85.88% from the latest price. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. However, expenses related to fuel prices are likely to have weighed on ALK’s bottom-line growth.
Stocks trending for September 6, 2023: AMC, United, Alaska, Southwest airlines, Overstock
Jamie Baker, JPMorgan senior airline analyst, joins ‘The Exchange’ to discuss turbulence in the airline industry and his expectations for where prices may be headed from here. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. ALK’s industry had an review the only investment guide you’ll ever need average PEG ratio of 0.32 as of yesterday’s close. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 14.44% decrease.
This suggests a possible upside of 83.3% from the stock’s current price. View analysts price targets for ALK or view top-rated stocks among Wall Street analysts. Alaska, like many of its peers that have already reported second-quarter results, beat expectations in the April-to-June period.
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading fxtm broker reviews advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.17% per year.
391 employees have rated Alaska Air Group Chief Executive Officer Bradley D. Tilden on Glassdoor.com. Bradley D. Tilden has an approval rating of 85% among the company’s employees. Sign-up to receive the latest news and ratings for Alaska Air Group and its competitors with MarketBeat’s FREE daily newsletter. Visit Performance Disclosure for information about the performance numbers displayed above. In 2022, ALK’s revenue was $9.65 billion, an increase of 56.19% compared to the previous year’s $6.18 billion.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. The airline sector was suffering another broad selloff Tuesday, amid worries over how a government shutdown will hurt the industry and as falling ticket prices raise concerns over profitability. Yes, the revenue guidance was not as hoped, but it is hardly reason to press the panic button.
Alkane Resources Limited operates as a gold exploration and production company in Australia. It explores for gold, copper, nickel, zinc, and silver deposits. The company also invests in junior gold mining companies and projects. Alkane Resources Limited was incorporated in hycm review 1969 and is headquartered in West Perth, Australia. Alaska Air Group (ALK -1.69%) had a great quarter, but management’s expectations for revenue growth from here fell short of what analysts had hoped for. Investors were disappointed, sending Alaska shares down about 12%.
The airline industry is well-positioned for solid growth due to the resurgence of travel demand. To that end, it could be wise to add fundamentally strong airline stocks, Allegiant Travel (ALGT), Alaska… Alaska Air Group updated its third quarter 2023 earnings guidance on Wednesday, September, 13th. The company provided earnings per share (EPS) guidance of for the period.