Alaska Air Group (ALK) Q4 Earnings Beat Expectations with Adjusted EPS of $0.43
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: seekingalpha
- Earnings Beat: Alaska Air reported an adjusted EPS of $0.43 for Q4, down from $0.97 year-over-year but exceeding Wall Street's expectation by $0.32, indicating effective cost management amidst challenges.
- Stable Revenue Growth: The company achieved $3.63 billion in revenue for Q4, a 3% increase year-over-year, despite falling short of consensus estimates, with a 0.6% rise in revenue per available seat mile (RASM) reflecting resilience during the government shutdown.
- Strategic Investment Plan: Alaska Air's three-year 'Alaska Accelerate' initiative aims to generate $1 billion in incremental profit by expanding international routes and upgrading premium offerings, targeting at least 12 widebody international destinations by 2030.
- Cautious Future Outlook: The company anticipates that sustained macroeconomic recovery and stable fuel prices are necessary to achieve its earnings guidance of $3.50 to $6.50 per share for 2026, highlighting vigilance regarding future market uncertainties.
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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: 52.370
Low
64.00
Averages
73.00
High
94.00
Current: 52.370
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.
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