Core Viewpoint - Alaska Air Group (ALK) has experienced a significant decline in stock performance, with a return of -9.8% over the past month, compared to the S&P 500's -0.4% and the airline industry’s -47.8% [1] Earnings Estimates Revisions - Alaska Air is expected to report earnings of $1.55 per share for the current quarter, reflecting a year-over-year decrease of -15.3% and a 30-day change of -30.1% in the Zacks Consensus Estimate [3] - The consensus earnings estimate for the current fiscal year is $4.09, indicating a -9.7% change from the previous year, with a 30-day change of -13.3% [3] - For the next fiscal year, the consensus estimate is $5.90, showing a +44.3% change year-over-year, but with a recent 30-day change of -7.4% [3] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $2.94 billion, representing a year-over-year increase of +3.5% [5] - For the current fiscal year, revenue estimates are $10.74 billion, indicating a +3% change, while the next fiscal year estimate is $11.47 billion, reflecting a +6.8% change [5] Last Reported Results and Surprise History - Alaska Air reported revenues of $2.9 billion in the last quarter, a year-over-year increase of +2.1%, with an EPS of $2.55 compared to $3 a year ago [6] - The reported revenues were below the Zacks Consensus Estimate of $2.95 billion, resulting in a surprise of -1.93%, while the EPS surprise was +8.05% [7] - Over the last four quarters, Alaska Air exceeded consensus EPS estimates three times and surpassed revenue estimates twice [7] Valuation - Alaska Air's valuation metrics, including price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), are essential for assessing whether the stock is fairly valued [8] - The Zacks Value Style Score indicates that Alaska Air is graded A, suggesting it is trading at a discount compared to its peers [9] Conclusion - The current Zacks Rank of 4 for Alaska Air suggests potential underperformance relative to the broader market in the near term [10]

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Alaska Air Group, Inc. (ALK) is an airline company which provides passenger and cargo air transportation services. The Zacks Consensus Estimate for its current year earnings has been revised 3.4% downward over the last 60 days.HF Sinclair Corporation (DINO) is an independent energy company. The Zacks Consensus Estimate for its current year earnings has been revised 28.1% downward over the last 60 days.Ironwood Pharmaceuticals, Inc. (I ...

Airline stocks have had a rough go of it in the earnings confessional this monthAirline stocks are always in focus as summer travel season picks up, even more so with earnings season in high gear. With this volatility in mind, how are some of the heavy hitters faring after their turn in the quarterly confessional?Delta Air Lines, Inc. (NYSE:DAL) stock is down 2.2% to trade at $44.80 at last glance, and has now shaved 16.8% off its May 13 three-year high of $53.86. The shares dropped 4% on July 11 after the ...

Financial Data and Key Metrics Changes - The company reported a GAAP net income of $220 million for Q2 2024, with an adjusted net income of $327 million excluding special items and mark-to-market fuel hedge adjustments [5][6] - Revenue reached a record $2.9 billion, marking a 2% increase year-over-year, with an adjusted pre-tax margin of 15.8%, expected to lead the industry [8][16] - Unit costs decreased by nearly 2% year-over-year, reflecting strong cost management and productivity [9][29] Business Line Data and Key Metrics Changes - Premium segment revenues contributed nearly $1 billion to total revenue, with First Class and Premium Class revenues up 8% and 6% year-over-year, respectively [8][17] - Load factors increased sequentially to 87% in June, although the overall load factor for the quarter was 84%, impacted by capacity additions [16][17] Market Data and Key Metrics Changes - Competitive capacity in the Alaska long-haul market was up over 20%, but overall capacity growth is expected to moderate in Q3 and Q4 [42][50] - The company anticipates a 2% to 3% year-over-year capacity increase in Q3, down from 6% in Q2 [22][23] Company Strategy and Development Direction - The company is focused on enhancing its premium offerings, with plans to increase the premium seat mix from 25% to 28% [14][25] - The planned acquisition of Hawaiian Airlines is expected to broaden the company's presence in both domestic and international markets, pending regulatory approval [10][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining industry-leading margins despite challenges from rising labor costs and a softer domestic demand environment [34][82] - The company is adjusting its full-year EPS guidance down by $0.25 to reflect the impact of the flight attendant deal and current market conditions [10][33] Other Important Information - The company achieved a completion rate of 99.5% or better each month in Q2, demonstrating operational excellence [9][11] - Total liquidity at the end of the quarter was $3.1 billion, with a debt-to-cap ratio of 45% [28] Q&A Session Summary Question: Update on the acquisition discussions with the DOJ - Management confirmed they are in the final stages of discussions with the DOJ and are awaiting feedback [38] Question: Yield comparison for Premium Class - Management indicated that the paid Premium Class yields are approximately 40% higher than the Main Cabin [40] Question: Competitive capacity growth in Q2 and outlook for Q3 - Competitive capacity was elevated in Q2, but is expected to moderate in Q3 and Q4 [42] Question: Cost increase breakdown for Q3 - Labor costs, particularly from the flight attendant contract, are expected to account for about one-third of the cost increase [45] Question: Capacity expectations for 2025 - Management indicated that capacity growth in 2025 is likely to remain below medium to long-term targets due to delivery delays [54] Question: Contribution from oneworld partnerships - Revenue from partnerships is approximately 7% of total revenue, with expectations for growth [84]

Alaska Air Group, Inc. (ALK) reported second-quarter 2024 earnings per share (EPS) of $2.55, which outpaced the Zacks Consensus Estimate of $2.36. Earnings decreased 15% on a year-over-year basis.Operating revenues of $2.89 billion missed the Zacks Consensus Estimate of $2.94 billion. The top line jumped 2% year over year, with passenger revenues accounting for 91.5% of the top line and increasing 2% owing to continued recovery in air-travel demand.Passenger revenues totaled $2.651 billion in the reported q ...

ALASKA AR GROUP 02 2024 Earnings Alaska U Safe Harbor This presentation may contain forward-looking statements subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. These statements relate to future events and involve known and unknown risks and uncertainties that may cause actual outcomes to be materially different from those indicated by our forward-locking s ...

For the quarter ended June 2024, Alaska Air Group (ALK) reported revenue of $2.9 billion, up 2.1% over the same period last year. EPS came in at $2.55, compared to $3.00 in the year-ago quarter.The reported revenue represents a surprise of -1.93% over the Zacks Consensus Estimate of $2.95 billion. With the consensus EPS estimate being $2.36, the EPS surprise was +8.05%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expe ...

Alaska Air Group (ALK) came out with quarterly earnings of $2.55 per share, beating the Zacks Consensus Estimate of $2.36 per share. This compares to earnings of $3 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.05%. A quarter ago, it was expected that this airline would post a loss of $1.09 per share when it actually produced a loss of $0.92, delivering a surprise of 15.60%.Over the last four quarters, the company has surp ...

Expected to lead the industry with adjusted pretax margin of 15.8%Achieved a completion rate of 99.5%, among the highest in the industryReached tentative agreement with Alaska flight attendants represented by AFASEATTLE, July 17, 2024 /PRNewswire/ -- Alaska Air Group (NYSE: ALK) today reported financial results for the second quarter ending June 30, 2024, and provided outlook for the third quarter ending September 30, 2024 and full year 2024."It's clear that premium airlines are rising above the rest of the ...

This expansion will add 1.3 million premium seats annually to our mainline fleet, providing guests with even more opportunities to upgrade to a premium experienceSEATTLE, July 17, 2024 /PRNewswire/ -- At Alaska Airlines, we're always looking for new ways to make your travel experience even better. We believe in giving you choices that fit your needs, whether you're all about the comfort and perks of Premium and First Class, or you appreciate the value and flexibility of our Main Cabin and Saver Fare options ...