Alaska Air(US:ALK) Financial Modeling Prep·2025-10-22 12:00Core Viewpoint - Alaska Air Group is facing a significant decline in earnings per share (EPS) despite an increase in revenue, indicating challenges in profitability [2][6]. Financial Performance Expectations - The expected EPS of $1.11 represents a 50.7% decline from the previous year [2][6]. - Revenue is anticipated to increase by 22.2% to approximately $3.76 billion [2][6]. - Analysts have revised the EPS estimate downward by 6.9% over the past 30 days, reflecting a cautious outlook on the company's financial performance [2]. Market Reaction and Earnings Call - The stock's performance after the earnings report will depend on whether Alaska Air Group meets or exceeds the EPS and revenue estimates [3]. - A positive earnings surprise could lead to a stock price increase, while a miss may result in a decline [3]. - The management's discussion during the earnings call will be critical for shaping future earnings expectations [3]. Valuation Metrics - Alaska Air Group has a price-to-earnings (P/E) ratio of 18.94, indicating a moderate market valuation of its earnings [4][6]. - The price-to-sales ratio is 0.42, suggesting a relatively low market valuation compared to its revenue [4][6]. - The enterprise value to sales ratio stands at 0.84, further highlighting the market's perception of the company's financial health [4]. Financial Structure Insights - The company has a debt-to-equity ratio of 1.62, indicating a level of financial leverage [5][6]. - A current ratio of 0.52 may suggest potential liquidity challenges [5][6]. - The enterprise value to operating cash flow ratio is 7.88, and the earnings yield is 5.28%, providing insights into how the market values the company's cash flow and return on investment for shareholders [5].