Barclays on U.S. Airlines: April Review - Adjusting Estimates on ALGT, ALK, JBLU, LUV & UAL
Tweet
Share
E-mailGet Alerts ALGT Hot Sheet
Price: $81.85 +7.12%
Rating Summary:
19 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
19 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Barclays on U.S. Airlines: April Review as 1Q Comes Into Focus
Analyst, David E. Fintzen, said, "With March RASM 'out like a lion', we now see some upside risk to our 2Q RASM outlook. 1Q month-to-month RASM trends are historically volatile and February weakness looks to have indeed been something of a head-fake. Based on company reports, we see enough momentum exiting 1Q to hit our current 2Q outlook with effectively no further revenue acceleration (i.e. only typical seasonality)."
Updated Estimates Include:
Allegiant Travel (Nasdaq: ALGT) - 1Q EPS increases to $1.00 on better cost performance, while 2012 EPS increases to $4.15 on slower capacity growth in the face of rising fuel prices. (FY12 EPS raised from $3.95 to $4.15, FY13 cut from $5.20 to $5.15)(Price target raised from $70 to $75)
Alaska Air (NYSE: ALK) - 1Q EPS estimate declines to $0.34 on higher jet fuel, offsetting a touch stronger RASM in 1Q and improved non-fuel cost guidance. (FY12 EPS estimates lowered from $4.55 to $4.50)
JetBlue (Nasdaq: JBLU) - An 8% RASM gain in March (vs. guide of 6.5-7.5%), but a slightly lower other revenue assumption keeps our 1Q EPS estimate at $0.07. (FY12 raised from $0.42 to $0.43)
Southwest Air (NYSE: LUV) - RASM underperformed the industry at +5% in March, but was better than we had feared. Our 1Q EPS outlook moves higher, to a $0.05 loss. (FY12 from $0.65 to $0.68)
United Continental (NYSE: UAL) - March upside surprise in RASM points to a smaller-than-expected 1Q loss. We now expect EPS of ($1.15). (FY12 EPS raised from $3.65 to $3.80)
Analyst, David E. Fintzen, said, "With March RASM 'out like a lion', we now see some upside risk to our 2Q RASM outlook. 1Q month-to-month RASM trends are historically volatile and February weakness looks to have indeed been something of a head-fake. Based on company reports, we see enough momentum exiting 1Q to hit our current 2Q outlook with effectively no further revenue acceleration (i.e. only typical seasonality)."
Updated Estimates Include:
Allegiant Travel (Nasdaq: ALGT) - 1Q EPS increases to $1.00 on better cost performance, while 2012 EPS increases to $4.15 on slower capacity growth in the face of rising fuel prices. (FY12 EPS raised from $3.95 to $4.15, FY13 cut from $5.20 to $5.15)(Price target raised from $70 to $75)
Alaska Air (NYSE: ALK) - 1Q EPS estimate declines to $0.34 on higher jet fuel, offsetting a touch stronger RASM in 1Q and improved non-fuel cost guidance. (FY12 EPS estimates lowered from $4.55 to $4.50)
JetBlue (Nasdaq: JBLU) - An 8% RASM gain in March (vs. guide of 6.5-7.5%), but a slightly lower other revenue assumption keeps our 1Q EPS estimate at $0.07. (FY12 raised from $0.42 to $0.43)
Southwest Air (NYSE: LUV) - RASM underperformed the industry at +5% in March, but was better than we had feared. Our 1Q EPS outlook moves higher, to a $0.05 loss. (FY12 from $0.65 to $0.68)
United Continental (NYSE: UAL) - March upside surprise in RASM points to a smaller-than-expected 1Q loss. We now expect EPS of ($1.15). (FY12 EPS raised from $3.65 to $3.80)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Viking Holdings (VIK) PT Raised to $82 at Mizuho
- Cummins (CMI) PT Lowered to $675 at Jefferies
- Keefe, Bruyette & Woods Resumes Canadian Imperial Bank of Commerce (CM:CN) (CM) at Market Perform
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
BarclaysSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
