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Alaska Air Group Hits Estimates in Solid Quarter

By Seth Jayson - Updated Apr 7, 2017 at 11:10AM

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Just the facts, Fool.

Alaska Air Group (NYSE: ALK) reported earnings on Oct. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Alaska Air Group met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.

Margins grew across the board.

Revenue details
Alaska Air Group notched revenue of $1.27 billion. The nine analysts polled by S&P Capital IQ predicted sales of $1.28 billion on the same basis. GAAP reported sales were 6.2% higher than the prior-year quarter's $1.20 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 $2.09. The 13 earnings estimates compiled by S&P Capital IQ predicted $2.10 per share. GAAP EPS of $2.27 for Q3 were 114% higher than the prior-year quarter's $1.06 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 34.6%, 880 basis points better than the prior-year quarter. Operating margin was 21.2%, 910 basis points better than the prior-year quarter. Net margin was 12.8%, 630 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.13 billion. On the bottom line, the average EPS estimate is $0.78.

Next year's average estimate for revenue is $4.66 billion. The average EPS estimate is $4.80.

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 $47.13.

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Stocks Mentioned

Alaska Air Group, Inc. Stock Quote
Alaska Air Group, Inc.
ALK
$41.54 (0.90%) $0.37

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