Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Hawaiian Holdings (NASDAQ:HA), owner of Hawaiian Airlines, jumped 13.7% today after the company reported second-quarter earnings.
So what: Revenue was up 7.8% compared to last year in the quarter to $575.7 million, and generally accepted accounting principles net income more than doubled to $27.3 million, or $0.43 per share. On an adjusted basis, which Wall Street normally uses, earnings were $0.35 per share, versus analysts' $0.33 estimate.
Now what: Importantly, revenue per available seat mile was up 4.1% in the quarter and management expects that strong trend to continue. Third-quarter guidance calls for 3%-6% operating revenue per seat mile growth compared to 1%-4% cost growth. Given the operational momentum and the high rates Hawaiian Airlines garners from paying customers, this is one of the better long-term plays in the industry.