Everything You Need To Know Ahead Of Earnings

Global airline American Airlines (NASDAQ:AAL) will be reporting results tomorrow before market open. Here’s what to expect.

American Airlines beat analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $13.65 billion, up 1.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS estimates and full-year EPS guidance exceeding analysts’ expectations. It reported 65.5 billion revenue passenger miles, up 6.4% 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 grow 2.8% year on year to $13.42 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.66 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. American Airlines has missed Wall Street’s revenue estimates five times over the last two years.

Looking at American Airlines’s peers in the travel and vacation providers segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 10%, meeting analysts’ expectations, and Delta Air Lines reported revenues up 9.4%, topping estimates by 7.4%. Carnival traded up 2.2% following the results while Delta Air Lines was also up 6%.

Read our full analysis of Carnival’s results here and Delta Air Lines’s results here.

There has been positive sentiment among investors in the travel and vacation providers segment, with share prices up 3.4% on average over the last month. American Airlines is up 10% during the same time and is heading into earnings with an average analyst price target of $20.24 (compared to the current share price of $19.06).

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With earnings season right around the corner, it’s important for investors to be prepared. Here’s everything you need to know ahead of earnings:

1. What are earnings: Earnings refer to the financial performance of a company during a specific period, typically a quarter. This includes revenue, expenses, and ultimately, profit or loss.

2. Why are earnings important: Earnings are a key indicator of a company’s health and performance. Investors use earnings reports to assess the company’s financial strength and make informed investment decisions.

3. When do companies report earnings: Companies typically report earnings on a quarterly basis, with most earnings seasons occurring in January, April, July, and October. However, some companies may report earnings at different times.

4. How to access earnings reports: Earnings reports are usually released through a company’s investor relations website or through financial news outlets. Investors can also listen to earnings conference calls, where company executives discuss the results and answer questions from analysts.

5. What to look for in earnings reports: Key things to watch for in earnings reports include revenue growth, earnings per share (EPS), profit margins, and guidance for future performance. Analysts also pay attention to any unexpected expenses, one-time charges, or changes in accounting practices.

6. How to interpret earnings: Positive earnings results typically lead to an increase in a company’s stock price, while negative results can result in a decline. However, it’s important to consider the overall context of the earnings report and not just focus on one metric.

7. Risks of trading around earnings: Trading around earnings can be risky, as stock prices can be highly volatile before and after an earnings report. It’s important to do thorough research and have a clear trading strategy in place.

Overall, being well-informed and prepared ahead of earnings season can help investors make better decisions and navigate the market more effectively. Stay tuned for upcoming earnings reports and be ready to analyze and react to the results.

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#Ahead #Earnings