A Case of the JetBlues?: Fool by Numbers

Earlier Tuesday, Motley Fool Stock Advisor pick JetBlue Airlines (Nasdaq: JBLU  ) released earnings for the second quarter ended June 30.

  • While higher salaries and increased fuel expenses didn't prevent margins from rising, new CEO Dave Barger offered a warning that the soft operating environment will make it tough for JetBlue to continue its current performance.
  • Management is taking action by deferring deliveries of 16 Embraer (NYSE: ERJ  ) 190 jets to 2015 from 2013, which, in turn, should slow capacity growth.
  • Heavy summer traffic created extra congestion, causing JetBlue's on-time performance to slip to 69% from 77.9%.
  • Will that be enough? The 759 amateur and professional stock pickers following JetBlue in our Motley Fool CAPS investor-intelligence database don't seem to think so. They give the stock just two out of five stars.

(Figures in millions, except per-share data)

Income Statement Highlights

Q2 2007

Q2 2006

Change

Sales

$730

$612

19.3%

Net Profit

$21

$14

50.0%

EPS

$0.11

$0.08

37.5%

Diluted Shares

198.6

180.8

9.8%

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

Margin Checkup

Q2 2007

Q2 2006

Change*

Gross Margin

40.96%

40.69%

0.27

Operating Margin

10.00%

7.68%

2.32

Net Margin

2.88%

2.29%

0.59

*Expressed in percentage points

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Cash + ST Invest.

$772

$468

65.0%

Liabilities

Q2 2007

Q2 2006

Change

Long-Term Debt

$3,005

$2,287

31.4%

The balance sheet reflects the company's health.

Cash Flow Highlights

(No cash flow statement provided. Whatever.)

Free cash flow is a Fool's best friend.

Other Operating Metrics

Q2 2007

Q2 2006

Change

ASM (in Millions)

8,066

7,202

12.0

RASM (in Cents)

9.05

8.48

6.6

CASM (in Cents)

8.14

7.83

3.9

Load Factor

83.5%

82.2%

1.3*

*Expressed in percentage points

Find out more about airline operating metrics.

Related Foolishness:

JetBlue and Embraer are both Stock Advisor selections. Take a 30-day free trial to the service to see all the stocks that are helping David and Tom Gardner beat the market by more than 36 percentage points.

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 once took the Denver-to-New York red eye via JetBlue. He'd prefer to avoid that in the future. Tim didn't own shares in any of the companies mentioned in this article at the time of publication. Find Tim's portfolio here and his latest blog commentary here. The Motley Fool's disclosure policy always adds up.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 532493, ~/Articles/ArticleHandler.aspx, 12/17/2014 3:09:20 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement