AZUL Earnings Prediction
The chart below shows how AZUL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AZUL sees a -4.90% change in stock price 10 days leading up to the earnings, and a +3.01% change 10 days following the report. On the earnings day itself, the stock moves by +2.89%. This data can give you a slight idea of what to expect for the next quarter's release.
AZUL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
925.00M
-8.15%
15.59%
Gross Margin
49.33%
-3.86%
15.80%
Operating Margin
20.02%
2.25%
89.40%
Net Margin
7.02%
132.10%
-107.58%
EPS
0.18
129.51%
-108.74%
No Data Available
AZUL Earnings Analysis
Azul S.A. American Depositary Shares (each representing three preferred shares) Corporation (AZUL.N) Earnings Conference Call
Positive
Record Revenue Achievement: 1. Record Revenue: Azul achieved an all-time record revenue of BRL5.1 billion in Q3 2024, representing a 69% increase compared to Q3 2019.
EBITDA Increase: 2. EBITDA Growth: The company reported an EBITDA of BRL1.7 billion for the quarter, which is 77% higher than the same period in 2019.
Operating Income Achievement: 3. Operating Income Milestone: Azul generated over BRL1 billion in operating income during the quarter, marking a significant operational achievement.
Record RASK Performance: 4. RASK Achievement: The airline's RASK reached a record of BRL42.87, indicating strong revenue per available seat kilometer performance.
Debt Reduction and Cash Flow: 5. Debt Reduction and Cash Flow Improvement: Azul's recent transactions are projected to reduce debt by BRL5.4 billion and improve annual cash flow by BRL200 million, enhancing financial stability.
Negative
Currency Devaluation Impact: 1. Significant Currency Devaluation: The Brazilian real has devalued by 18% since the beginning of the year and is nearly 50% weaker compared to 2019, impacting cash flow and operational costs.
OEM Operational Disruptions: 2. OEM Challenges: The company faces significant operational disruptions due to OEM issues, including delivery delays and early engine removals, which are expected to cost over BRL1 billion this year alone.
Interest Expense Impact: 3. High Interest Expenses: Azul paid approximately BRL600 million in interest expenses during the third quarter, which is a substantial drag on cash generation and overall financial health.
Workforce Reduction Concerns: 4. Employee Reductions: Despite expanding operations, Azul reduced its workforce by 1.5%, raising concerns about sustainability and future hiring needs amidst operational growth.
Domestic Capacity Challenges: 5. Lower Capacity Growth: The company anticipates lower domestic capacity growth compared to international growth, which may limit revenue potential in the domestic market.
AZUL FAQs
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AZUL Earning Call Sentiment
Azul S.A. (AZUL) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
AZUL.N
-3.19%Positive
The earnings call summary reveals strong financial performance, including record revenue and EBITDA, significant debt reduction, and improved cash flow. The Elevate Plan, cost efficiency, and fleet transformation are positive indicators. Despite challenges like fleet disruptions and currency devaluation, optimistic guidance and strategic initiatives suggest a positive outlook. The Q&A session highlighted capacity growth and debt equitization, which are favorable. Overall, the comprehensive shareholder return plan and reduced interest expenses further support a positive sentiment, likely leading to a 2% to 8% stock price increase over the next two weeks.
