Global airline American Airlines (NASDAQ:AAL) will be reporting earnings tomorrow before market open. Here’s what investors should know.
American Airlines met analysts’ revenue expectations last quarter, reporting revenues of $14.33 billion, up 2% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ operating margin estimates but a miss of analysts’ EBITDA estimates.
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 $13.57 billion, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 7 upward revisions over the last 30 days (we track 12 analysts). American Airlines has missed Wall Street’s revenue estimates five times over the last two years.
Looking at American Airlines’s peers in the consumer discretionary 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 15.2%, meeting analysts’ expectations, and Delta Air Lines reported revenues up 1.2%, topping estimates by 2.5%. Carnival traded down 2.8% following the results while Delta Air Lines’s stock price was unchanged.
Read our full analysis of Carnival’s results here and Delta Air Lines’s results here.
Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. American Airlines is up 17.4% during the same time and is heading into earnings with an average analyst price target of $12.16 (compared to the current share price of $12.96).
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