Alaska Air Group
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Alaska Air Group met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Alaska Air Group booked revenue of $1.13 billion. The nine analysts polled by S&P Capital IQ wanted to see revenue of $1.13 billion on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $1.04 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.70. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.72 per share. GAAP EPS of $0.61 for Q4 were 31% lower than the prior-year quarter's $0.88 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 21.6%, 820 basis points worse than the prior-year quarter. Operating margin was 6.5%, 730 basis points worse than the prior-year quarter. Net margin was 3.9%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.12 billion. On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $4.99 billion. The average EPS estimate is $5.43.
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 $50.00.
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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. TMFDisclosureHere