Alaska Air Group
The 10-second takeaway
For the quarter ended June 30 (Q2), Alaska Air Group whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins contracted, net margins grew.
Alaska Air Group reported revenue of $1.05 billion. The eight analysts polled by S&P Capital IQ predicted net sales of $1.26 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.47. The 14 earnings estimates compiled by S&P Capital IQ anticipated $1.51 per share. GAAP EPS of $1.47 for Q2 were 58% higher than the prior-year quarter's $0.93 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 28.5%, 90 basis points worse than the prior-year quarter. Operating margin was 13.9%, 140 basis points worse than the prior-year quarter. Net margin was 8.3%, 270 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.33 billion. On the bottom line, the average EPS estimate is $2.02.
Next year's average estimate for revenue is $4.93 billion. The average EPS estimate is $5.14.
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 $67.64.
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