The 10-second takeaway
For the quarter ended March 31 (Q1), Hawaiian Holdings met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Margins increased across the board.
Hawaiian Holdings booked revenue of $435.5 million. The seven analysts polled by S&P Capital IQ foresaw a top line of $435.1 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $365.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.06. The seven earnings estimates compiled by S&P Capital IQ predicted -$0.02 per share on the same basis. GAAP EPS of $0.14 for Q1 were much higher than the prior-year quarter's $0.02 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.3%, 410 basis points better than the prior-year quarter. Operating margin was 3.0%, 210 basis points better than the prior-year quarter. Net margin was 1.7%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $489.1 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $2.06 billion. The average EPS estimate is $1.25.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 181 members out of 222 rating the stock outperform, and 41 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Hawaiian Holdings a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hawaiian Holdings is outperform, with an average price target of $9.08.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.