Alaska Air Set to Announce Q1 Earnings on April 20
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy ALK?
Source: seekingalpha
- Earnings Announcement: Alaska Air (ALK) is set to release its Q1 2023 earnings on April 20 after market close, with a consensus EPS estimate of -$1.55, reflecting a significant 101.3% year-over-year decline, indicating substantial profitability challenges ahead.
- Revenue Expectations: The anticipated revenue for Q1 is $3.29 billion, representing a 4.8% year-over-year increase, although this growth is overshadowed by ongoing profitability concerns, highlighting intensified competition and macroeconomic risks in the airline industry.
- Historical Performance: Over the past two years, Alaska Air has exceeded EPS estimates 75% of the time and revenue estimates 63% of the time, yet recent EPS estimates have seen one upward revision and nine downward revisions, indicating analyst uncertainty regarding the company's future performance.
- Market Analysis: Recent analyst ratings for Alaska Air have been downgraded twice, primarily due to rising oil prices and macroeconomic risks, reflecting market concerns about potential consolidation in the airline industry and the associated uncertainties.
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Analyst Views on ALK
Wall Street analysts forecast ALK stock price to rise
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 41.150
Low
63.00
Averages
71.10
High
80.00
Current: 41.150
Low
63.00
Averages
71.10
High
80.00
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 of passengers and cargo on Boeing 737 (B737), Boeing 787 (B787), Boeing 717 (B717), Airbus A330 (A330), Airbus A321neo (A321neo), and others, throughout North America, Latin America, Asia, and the Pacific. 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.
- Earnings Announcement: Alaska Air (ALK) is set to release its Q1 2023 earnings on April 20 after market close, with a consensus EPS estimate of -$1.55, reflecting a significant 101.3% year-over-year decline, indicating substantial profitability challenges ahead.
- Revenue Expectations: The anticipated revenue for Q1 is $3.29 billion, representing a 4.8% year-over-year increase, although this growth is overshadowed by ongoing profitability concerns, highlighting intensified competition and macroeconomic risks in the airline industry.
- Historical Performance: Over the past two years, Alaska Air has exceeded EPS estimates 75% of the time and revenue estimates 63% of the time, yet recent EPS estimates have seen one upward revision and nine downward revisions, indicating analyst uncertainty regarding the company's future performance.
- Market Analysis: Recent analyst ratings for Alaska Air have been downgraded twice, primarily due to rising oil prices and macroeconomic risks, reflecting market concerns about potential consolidation in the airline industry and the associated uncertainties.
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- Key Earnings Week: Cramer highlighted that the upcoming week features several important earnings reports, including Alaska Airlines and Boeing, which are expected to significantly impact market trends, particularly with potential merger activity in the airline sector as the prospect of war ending improves.
- Investor Focus: Cramer specifically noted that Tesla's earnings report will be a focal point for investors, as interest in its autonomy and robotics technologies is growing despite pressures on core auto sales, which could influence stock performance.
- Defensive Investment Strategy: Cramer advised adopting a defensive investment strategy ahead of earnings from American Express and Procter & Gamble, especially given expectations of weak performance, suggesting these stocks remain attractive defensive investment options.
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- Defensive Investment Strategy: Cramer advises investors to focus on defensive stocks such as Procter & Gamble, which, despite expectations of a weak quarter, is viewed as an attractive and cheaper option in the consumer staples sector, reflecting a strategic response to market uncertainties.
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- Oil Price Plunge: WTI crude oil prices fell over 13% to a five-week low after the Strait of Hormuz reopened, easing inflation concerns and causing the 10-year Treasury yield to drop by 8 basis points, further supporting the bond market.
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- Airline Stocks Soar: With reduced fuel costs, Alaska Air Group and United Airlines surged by over 14% and 11%, respectively, demonstrating the positive impact of falling oil prices on the airline industry, which could enhance profitability for related companies.
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- Oil Price Plunge: WTI crude prices fell over 10% after Iran announced the Strait of Hormuz is now fully open for commercial shipping, easing inflation concerns and contributing to a 6 basis point drop in the 10-year Treasury yield, which invigorates the bond market.
- Earnings Optimism: Q1 earnings for the S&P 500 are projected to increase by 12% year-over-year, although excluding the tech sector, growth is only expected at 3%, yet this overall positive outlook may attract more investor interest and bolster market confidence.
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