MESA Earnings Prediction
The chart below shows how MESA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MESA sees a -1.65% change in stock price 10 days leading up to the earnings, and a +2.71% change 10 days following the report. On the earnings day itself, the stock moves by +7.29%. This data can give you a slight idea of what to expect for the next quarter's release.
MESA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
114.69M
-14.66%
-5.86%
Gross Margin
-3.59%
-140.07%
-220.07%
Operating Margin
-14.35%
-9068.75%
72.68%
Net Margin
-41.47%
458.14%
43.84%
EPS
-1.17
-317.86%
32.95%
No Data Available
MESA Earnings Analysis
Mesa Air Group, Inc. Corporation (MESA.O) Earnings Conference Call
Positive
Mesa Airlines' ongoing transition to focus on maximizing block hours and reducing surplus CRJ-900 assets and infrastructure is largely complete, with a total of 24 CRJs flying in addition to 56 E-Jets. The company has successfully carried an additional 0.5 million passengers for United on its incremental flying during the quarter.
The completion of the CRJ-900 transition represents a significant milestone for Mesa Airlines.
The addition of passengers for United's incremental flying demonstrates the company's ability to adapt and meet customer demand effectively.
Mesa's efforts to increase pilot production through initiatives like the direct-entry captain program in cooperation with United and the Mesa Pilot Development Program have been successful. The company now has approximately 1,900 new hire applicants and is focused on addressing the pilot shortage affecting the aviation industry.
Mesa Airlines' proactive approach to addressing the pilot shortage will help ensure operational efficiency and maximize utilization capacity.
The company's successful recruiting and training programs indicate a strong pipeline of qualified pilots for future operations.
Mesa Airlines' financial performance improvement is evident through actions taken to sell surplus CRJ-900 aircraft engines and inventory, shedding infrastructure, and reducing debt levels. The sale of surplus assets will result in significant cost savings and debt reduction, strengthening the company's balance sheet.
Mesa Airlines' strategic actions to dispose of surplus assets and reduce debt levels demonstrate a commitment to financial stability and operational efficiency.
The successful sale of surplus CRJ-900s, engines, and infrastructure will contribute to improved financial performance and profitability in the future.
Negative
- Mesa reported a significant adjusted pretax loss for the quarter at $29.1 million, including approximately $15 million in surplus CRJ-900 related costs and an additional $5 million related to the transition.
- Mesa continues to face challenges with pilot production and the ongoing pilot shortage in the industry, impacting the company's ability to meet its full utilization capacity. The pilot shortage is evident as Mesa is only flying at approximately 70% of its full utilization capacity.
- The company reported a net loss of $47.6 million for the quarter, with an adjusted loss of $27.2 million. This marks a larger loss compared to the same quarter in 2022, totaling $10 million.
- Revenue for the quarter was $114.7 million, down 14.7% compared to the previous year, primarily driven by lower CRJ-900 block hours and fewer aircraft under contract, partially offset by higher United block-hour rates for new pilot pay scale.
- Mesa's ongoing transition from CRJ-900 to E-Jets has incurred costs associated with surplus CRJ-900 aircraft engines and infrastructure, estimated at $15 million for the quarter. The disposal of surplus assets remains a focus area to achieve cost savings.
