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), the owner of Hawaiian Airlines, jumped as much as 12% today after announcing better than expected earnings.
So what: Revenue was up 2.9% to $540.3 million and the company swung from a loss of $5 million to a profit of $25.9 million, or $0.40 per share. Adjusted earnings were $0.38 per share and analysts were only expecting a $0.33 per share profit on that basis.
On top of the solid results, management announced a $100 million share repurchase program.
Now what: Strong demand from passengers and low oil prices have been a perfect storm for Hawaiian Airlines and right now the trend looks like it will continue. Management expects revenues to grow faster than costs again in the second quarter and for the full year as well. Given the forward P/E ratio of 8.9 for Hawaiian Holdings' shares I think this is still a good buy even after the pop today.