Alaska Air Group (ALK) got here out with quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.30 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 106.38%. 1 / 4 in the past, it was anticipated that this airline would submit earnings of $2.20 per share when it truly produced earnings of $2.25, delivering a shock of two.27%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates 4 instances.
Alaska Air
The sustainability of the inventory’s fast worth motion primarily based on the recently-released numbers and future earnings expectations will principally rely on administration’s commentary on the earnings name.
Alaska Air shares have added about 6.4% because the starting of the yr versus the S&P 500’s achieve of two.9%.
What’s Subsequent for Alaska Air?
Whereas Alaska Air has outperformed the market to this point this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?
There are not any straightforward solutions to this key query, however one dependable measure that may assist traders handle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified these days.
Empirical analysis exhibits a robust correlation between near-term inventory actions and tendencies in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested ranking software just like the Zacks Rank, which has a formidable monitor document of harnessing the ability of earnings estimate revisions.
Forward of this earnings release, the estimate revisions pattern for Alaska Air: favorable. Whereas the magnitude and path of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #1 (Robust Purchase) for the inventory. So, the shares are anticipated to outperform the market within the close to future. You possibly can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It will likely be fascinating to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is -$0.20 on $3.22 billion in revenues for the approaching quarter and $5.93 on $14.66 billion in revenues for the present fiscal yr.
Buyers must be aware of the truth that the outlook for the trade can have a cloth affect on the efficiency of the inventory as properly. By way of the Zacks Trade Rank, Transportation – Airline is at present within the high 12% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
GE Aerospace (GE), one other inventory in the identical trade, has but to report outcomes for the quarter ended December 2024. The outcomes are anticipated to be launched on January 23.
This industrial conglomerate is anticipated to submit quarterly earnings of $1.02 per share in its upcoming report, which represents a year-over-year change of -1%. The consensus EPS estimate for the quarter has been revised 0.6% decrease during the last 30 days to the present degree.
GE Aerospace’s revenues are anticipated to be $9.54 billion, down 48.5% from the year-ago quarter.
Ought to You Spend money on Alaska Air Group, Inc. (ALK)?
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Zacks Funding Analysis has been dedicated to offering traders with instruments and impartial analysis since 1978. For greater than 1 / 4 century, the Zacks Rank stock-rating system has greater than doubled the S&P 500 with a mean achieve of +24.08% per yr. (These returns cowl a interval from January 1, 1988 by Could 6, 2024.)
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
GE Aerospace (GE) : Free Stock Analysis Report
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