Alaska Air Group
The 10-second takeaway
For the quarter ended June 30 (Q2), Alaska Air Group met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share improved significantly.
Margins expanded across the board.
Revenue details
Alaska Air Group recorded revenue of $1.21 billion. The eight analysts polled by S&P Capital IQ predicted revenue of $1.21 billion on the same basis. GAAP reported sales were 9.3% higher than the prior-year quarter's $1.11 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.53. The 14 earnings estimates compiled by S&P Capital IQ predicted $1.50 per share. GAAP EPS of $0.93 for Q2 were 138% higher than the prior-year quarter's $0.39 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 23.6%, 110 basis points better than the prior-year quarter. Operating margin was 9.5%, 190 basis points better than the prior-year quarter. Net margin was 5.6%, 300 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.29 billion. On the bottom line, the average EPS estimate is $2.17.
Next year's average estimate for revenue is $4.66 billion. The average EPS estimate is $4.85.
Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alaska Air Group is outperform, with an average price target of $47.50.
Over the decades, small-cap stocks, like Alaska Air Group have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Alaska Air Group to My Watchlist.