Core Insights - Copa Holdings reported revenue of $842.6 million for Q2 2025, a year-over-year increase of 2.8% and an EPS of $3.61 compared to $2.88 a year ago, exceeding the Zacks Consensus Estimate of $834.81 million by 0.93% [1] - The company delivered an EPS surprise of 11.08%, with the consensus EPS estimate being $3.25 [1] Financial Performance Metrics - Load Factor was 87.3%, surpassing the average estimate of 86.7% from five analysts [4] - PRASM (Passenger revenue per ASM) was 10.1 cents, matching the four-analyst average estimate [4] - Yield was 11.6 cents, exceeding the average estimate of 10.89 cents from four analysts [4] - Average Price Per Fuel Gallon was $2.32, lower than the $2.40 average estimate from four analysts [4] - ASMs (Available seat miles) totaled 7.86 billion, slightly above the four-analyst average estimate of 7.83 billion [4] - CASM Excluding Fuel was 5.8 cents, slightly higher than the four-analyst average estimate of 5.77 cents [4] - CASM was reported at 8.5 cents, lower than the average estimate of 8.58 cents from four analysts [4] - RPMs (Revenue passenger miles) reached 6.86 billion, exceeding the four-analyst average estimate of 6.79 billion [4] - RASM was 10.7 cents, below the average estimate of 11.41 cents from four analysts [4] - Fuel Gallons Consumed was 91.90 million gallons, higher than the average estimate of 91.27 million gallons from three analysts [4] - The total number of aircraft was 115, compared to the average estimate of 116 from two analysts [4] - Operating Revenues from Passenger revenue were $797.27 million, slightly above the five-analyst average estimate of $794.99 million, representing a year-over-year change of 2% [4] Stock Performance - Shares of Copa Holdings returned 0.8% over the past month, compared to the Zacks S&P 500 composite's 0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - Copa Holdings reported quarterly earnings of $3.61 per share, exceeding the Zacks Consensus Estimate of $3.25 per share, and up from $2.88 per share a year ago, representing an earnings surprise of +11.08% [1] - The company posted revenues of $842.6 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.93% and increasing from $819.4 million year-over-year [2] Group 2: Stock Performance and Outlook - Copa Holdings shares have increased approximately 25.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $4.24 on revenues of $911.95 million, and for the current fiscal year, it is $16.62 on revenues of $3.59 billion [7] Group 3: Industry Context - The Transportation - Airline industry, to which Copa Holdings belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Insights - Copa Holdings reported strong financial results for the second quarter of 2025, achieving a net profit of US$148.9 million, or US$3.61 per share, marking a 25.2% increase in earnings per share compared to the same period in 2024 [4][7][8] - The company declared a dividend payment of US$1.61 per share, to be paid on September 15, 2025, to shareholders of record as of August 29, 2025 [1] Financial Performance - The total operating revenue for 2Q25 was US$842.6 million, a 2.8% increase from US$819.4 million in 2Q24 [7][8] - Passenger revenue increased by 2.0% to US$797.3 million, while cargo and mail revenue rose by 12.4% to US$28.3 million [7][8] - Operating expenses totaled US$666.0 million, a slight increase of 0.9% from US$659.9 million in 2Q24 [8] - The operating profit was US$176.6 million, reflecting a 10.7% increase compared to US$159.5 million in 2Q24 [8] Operational Metrics - Copa Holdings carried 3.6 million revenue passengers in 2Q25, a 9.0% increase from 3.3 million in 2Q24 [6] - The load factor improved to 87.3%, up 0.5 percentage points from 86.8% in 2Q24 [6] - The company ended the quarter with a consolidated fleet of 115 aircraft, including three new Boeing 737 MAX 8 deliveries [4][6] Cost Management - Operating cost per available seat mile (CASM) decreased by 4.6% to 8.5 cents, while CASM excluding fuel increased by 3.2% to 5.8 cents [4][6] - The average price per fuel gallon decreased by 17.0% to US$2.32 compared to the previous year [6][8] Cash Position and Debt - The company reported approximately US$1.4 billion in cash and investments, representing 39% of the last twelve months' revenues [4] - The adjusted net debt to EBITDA ratio stood at 0.6 times, indicating a strong balance sheet [4] Recognition and Awards - Copa Airlines was recognized by Skytrax as the "Best Airline in Central America and the Caribbean" for the tenth consecutive year [4]

The earnings report, which is expected to be released on August 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. Zacks Consensus Estimate This holding co ...

Company Performance - Copa Holdings closed at $108.13, reflecting a -1.06% change from the previous day, underperforming the S&P 500's daily loss of 0.01% [1] - Over the past month, shares of Copa Holdings gained 5.35%, outperforming the Transportation sector's gain of 5.14% but slightly underperforming the S&P 500's gain of 5.37% [1] Upcoming Earnings - The upcoming earnings report for Copa Holdings is scheduled for August 6, 2025, with projected EPS of $3.22, indicating an 11.81% increase year-over-year [2] - Quarterly revenue is expected to reach $833.21 million, up 1.69% from the same period last year [2] Full Year Estimates - Analysts expect Copa Holdings to report earnings of $16.59 per share and revenue of $3.59 billion for the full year, representing increases of +13.94% and +4.34% respectively from the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for Copa Holdings reflect short-term business trends, with positive revisions indicating optimism about the business outlook [4] - The Zacks Rank system, which evaluates these estimate changes, currently ranks Copa Holdings at 3 (Hold) [6] Valuation Metrics - Copa Holdings has a Forward P/E ratio of 6.59, which is a discount compared to its industry's Forward P/E of 10.12 [6] - The company holds a PEG ratio of 0.77, while the average PEG ratio for Transportation - Airline stocks is 0.88 [7] Industry Ranking - The Transportation - Airline industry is currently ranked 92 in the Zacks Industry Rank, placing it in the top 38% of over 250 industries [7][8] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - Copa Holdings, S.A. (CPA) reported strong traffic numbers for June 2025, driven by increased air travel demand, with revenue passenger miles (RPM) improving year-over-year [1][8] - To meet rising demand, CPA increased its capacity, with available seat miles (ASM) up 5.3% year-over-year and RPM rising 6.3% year-over-year, resulting in a load factor increase to 87.5% from 86.6% [2][8] Company Performance - CPA's shares have increased by 16.6% year-to-date, significantly outperforming the Zacks Airline industry's decline of 57.6% [3][8] Industry Comparison - Other airlines, such as Volaris and Ryanair, also reported their June traffic numbers, with Volaris showing a 0.6% increase in capacity but a decrease in load factor, while Ryanair transported 19.3 million passengers, reflecting a 3% year-over-year increase with a stable load factor of 95% [4][5][6]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics [2][3][4][5][6] Zacks Style Scores - Each stock is rated from A to F, with A indicating the highest potential for outperformance [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Cash Flow [3] - The Growth Score assesses stocks based on projected earnings and sales growth [4] - The Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points [5] - The VGM Score combines the three Style Scores to highlight stocks with the best overall characteristics [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, achieving an average annual return of +23.62% since 1988 [7] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Company Spotlight: Copa Holdings - Copa Holdings operates through Copa Airlines and Copa Colombia, providing passenger and cargo airline services [11] - Currently rated 3 (Hold) with a VGM Score of A, indicating a stable outlook [11] - The company has a Momentum Style Score of A, with shares increasing by 4.5% over the past four weeks [12] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.13 to $16.59 per share [12] - Copa Holdings has an average earnings surprise of +5.5%, making it a noteworthy consideration for investors [12]

Core Insights - Copa Holdings reported a 5.3% increase in available seat miles (ASMs) for June 2025 compared to June 2024, reaching 2,654.3 million ASMs [1][2] - Revenue passenger miles (RPMs) increased by 6.3% year-over-year, totaling 2,322.3 million RPMs for June 2025 [1][2] - The load factor for June 2025 was 87.5%, which is an improvement of 0.8 percentage points from June 2024 [1][2] Company Overview - Copa Holdings is a prominent provider of passenger and cargo services in Latin America, operating in North, Central, and South America, as well as the Caribbean [3]

Core Viewpoint - Copa Holdings (NYSE: CPA) has been initiated as a "Strong Buy" and has returned 26% since the recommendation, outperforming the market, yet the stock remains undervalued [1] Summary by Relevant Sections - **Stock Performance** - The stock has returned 26% including dividends since the initiation of coverage [1] - **Valuation** - Despite the positive price action, the stock is still considered undervalued, albeit to a lesser extent [1] - **Investment Philosophy** - The analysis reflects a long-term investment approach, emphasizing the importance of knowledge compounding and strategic thinking in investing [1]

Core Viewpoint - Copa Holdings (CPA) is identified as a strong value stock with a Zacks Rank of 2 (Buy) and an "A" grade in the Value category, indicating it is likely undervalued in the current market [4][8]. Valuation Metrics - CPA has a P/E ratio of 6.1, significantly lower than the industry average of 10.78, suggesting it is undervalued [4]. - The PEG ratio for CPA is 0.72, compared to the industry average of 1.02, indicating a favorable valuation when considering expected earnings growth [5]. - CPA's P/B ratio stands at 1.75, which is lower than the industry average of 3.22, further supporting the notion of undervaluation [6]. - The P/CF ratio for CPA is 4.63, compared to the industry average of 6.70, highlighting its solid cash outlook and potential undervaluation [7]. Investment Outlook - The combination of CPA's strong earnings outlook and favorable valuation metrics positions it as one of the market's strongest value stocks [8].