JetBlue's Stormy Quarter: Fool by Numbers

On Wednesday, Stock Advisor pick JetBlue (Nasdaq: JBLU  ) released earnings for the first quarter ended March 31.

  • Revenue grew 24% year over year, thanks to a 12% increase in available seat miles and a 3.7% increase in the average fare.
  • Operating and net margins remain in the red as higher expenses plague the airline industry, mainly from increasingly expensive jet fuel.
  • Still, much like low-fare rival Southwest Airlines (NYSE: LUV  ) , JetBlue's stock is trading within spitting distance of its 52-week low. Investors following the company in our Motley Fool CAPS investor intelligence database don't have much faith either, conferring just two of the maximum five stars upon the beleaguered discount carrier.

(Figures in millions, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$608

$490

24.1%

Net Profit

($22)

($32)

N/A

EPS

($0.12)

($0.18)

N/A

Diluted Shares

178,204

173,246

2.9%

Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

34.38%

32.65%

1.73

Operating Margin

(2.14%)

(5.10%)

2.96

Net Margin

(3.62%)

(6.53%)

2.91

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$774

$419

84.7%

Accounts Rec.

$83

$123

(32.5%)

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$139

$102

36.3%

Long-Term Debt

$2,685

$2,154

24.7%

Learn the ways of the balance sheet.

Cash Flow Checkup

Q1 2007

Q1 2006

Change

Cash From Ops.

$147

$87

69%

Capital Expenditures

$212

$244

(13.1%)

Free Cash Flow

($65)

($157)

N/A

Find out why Fools always follow the money.

Other Operating Metrics

Q1 2007

Q1 2006

Change

ASM (in Millions)

7,370

6,577

12.1

RASM (in Cents)

8.25

7.46

10.6

CASM (in Cents)

8.43

7.84

7.5

Load factor

80.6%

84.2%

(3.6*)

*Expressed in percentage points.

Find out more about airline operating metrics.

Related Foolishness:

JetBlue is a Stock Advisor pick. Click here to get access to get 30 days of free access to the entire portfolio, which is beating the market by more than 38%.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Tim Beyers, ranked 3,251 out of more than 27,800 in CAPS, usually flies coach but will take first class any time he can get it. Tim owns shares of Southwest. All of his portfolio holdings can be found at Tim's Fool profile, and his thoughts on Foolishness and investing in general may be found in his blog. The Motley Fool's disclosure policy always adds up.


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