Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



US Airways Earnings: An Early Look

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

With dozens of companies having already reported quarterly results, we're now in the heart of earnings season. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed kneejerk reaction to news that turns out to be exactly the wrong move.

Let's turn to US Airways (UNKNOWN: LCC.DL  ) . The airline has had to deal with many of its competitors consolidating and combining in recent years, but now, it's US Airways' turn to look to grow through a potential merger. Let's take an early look at what's been happening with US Airways over the past quarter and what we're likely to see in its quarterly report on Wednesday.

Stats on US Airways

Analyst EPS Estimate


Change from Year-Ago EPS


Revenue Estimate

$3.28 billion

Change from Year-Ago Revenue


Earnings Beats in Past 4 Quarters


Source: Yahoo! Finance.

Will US Airways fly higher?
Analysts have been extremely optimistic about US Airways' prospects this quarter, raising their earnings-per-share estimates steadily throughout the past three months. The shares have also reflected that optimism, with the stock soaring between 20% and 25% since mid-October.

The airline industry has been always been a challenging sector to invest in, as the huge capital requirements and razor-thin margins give airlines almost no wiggle room to deal with shocks like high fuel costs and economic slowdowns. That's why so many airlines have declared bankruptcy over the years.

But the big question for US Airways is whether American parent AMR will agree to a merger. The company said earlier this month that it expects to make a decision soon on whether to emerge from bankruptcy as an independent company or to merge. With AMR's unions supporting a merger, things look promising for US Airways, especially since a merger would give US Airways access to American's international routes. The international side of the business has gotten incredibly important, with Delta Air Lines (NYSE: DAL  ) looking into a combination with Virgin Atlantic in order to get more space at London's Heathrow Airport.

Still, the domestic part of the airline business has also been looking brighter. Mergers by United Continental (NYSE: UAL  ) and Southwest Airlines (NYSE: LUV  ) have helped rein in overcapacity, and huge ancillary fees for baggage, onboard food, and other amenities have pushed profits higher.

In its report, look for signs that US Airways has made progress in its discussions with American. If it goes much longer without snagging a new partner, US Airways could easily fall behind in the consolidation race.

Find solid winners
If you want the top ideas for winning stocks, follow Motley Fool co-founder David Gardner as he seeks out revolutionary stocks that produce market-crushing returns. Take advantage of the last few days of David's invitation to tour his Supernova service. Don't wait; click here to get instant access without delay.

Click here to add US Airways to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

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.

Compare Brokers

Fool Disclosure

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: 2205568, ~/Articles/ArticleHandler.aspx, 9/27/2016 5:11:51 AM

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...

Today's Market

updated 7 hours ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
LCC.DL $0.00 Down +0.00 +0.00%
US Airways Group CAPS Rating: *
DAL $38.04 Down -0.74 -1.91%
Delta Air Lines CAPS Rating: ***
LUV $36.87 Down -0.37 -0.99%
Southwest Airlines CAPS Rating: ****
UAL $49.45 Down -1.50 -2.94%
United Continental… CAPS Rating: **