Alaska Air (ALK) Expected Q4 Earnings Drop to $0.11
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Earnings Decline Expected: Alaska Air is projected to report Q4 earnings of $0.11 per share, reflecting an 88.7% year-over-year decline, indicating significant profitability pressures and increased market competition.
- Revenue Growth Forecast: Despite the sharp drop in EPS, the revenue estimate stands at $3.64 billion, representing a 3.1% year-over-year increase, suggesting resilience in revenue potentially driven by recovering passenger demand.
- Historical Performance: Over the past two years, Alaska Air has beaten EPS estimates 63% of the time and revenue estimates 63% of the time, indicating the company's ability to maintain profitability and adapt to market fluctuations.
- Estimate Adjustments: In the last three months, EPS estimates saw 14 downward revisions with no upward adjustments, while revenue estimates experienced one upward revision and nine downward revisions, reflecting analysts' cautious outlook on the company's future performance.
Analyst Views on ALK
Wall Street analysts forecast ALK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALK is 73.00 USD with a low forecast of 64.00 USD and a high forecast of 94.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 47.600
Low
64.00
Averages
73.00
High
94.00
Current: 47.600
Low
64.00
Averages
73.00
High
94.00
About ALK
Alaska Air Group, Inc. is engaged in operating airlines. The Company operates through its subsidiaries Alaska Airlines, Inc., Hawaiian Holdings, Inc., Horizon Air Industries, Inc., and McGee Air Services. The Company's segments include Alaska Airlines, Hawaiian Airlines, and Regional. The Alaska Airlines segment includes scheduled air transportation on Alaska's Boeing jet aircraft for passengers and cargo. The Hawaiian Airlines segment includes scheduled air transportation on Hawaiian's Boeing and Airbus jet aircraft for passengers and cargo. The Regional segment includes Horizon's and other third-party carriers’ scheduled air transportation on E175 jet aircraft for passengers under capacity purchase agreements (CPAs). The Company serves more than 140 destinations throughout North America, Central America, Asia and across the Pacific. The Company provides freight and mail services (cargo) using both freighter aircraft and the bellies of its passenger aircraft.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
