Barclays on U.S. Airlines: February Revenues Not Inspiring, But Looking Forward to March
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Rating Summary:
20 Buy, 12 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Barclays on U.S. Airlines: February Revenues Not Inspiring, But Looking Forward to March
Analyst, David E. Fintzen, said, "February RASM results may have left us uninspired - even adjusted for mild weather - but the early look at March results suggests a better end to the quarter. Perhaps more importantly, airline revenue is at its most volatile on a month-to-month basis through 1Q, making it particularly dangerous to extrapolate a miss (or, in fairness, a beat) in any given month."
"We revise our 1Q12 estimates generally higher (United Continental (NYSE: UAL) an exception) as our views on March revenue are refined. We remain below consensus for the quarter, but see less downside than we did a week ago. UAL, we'd note, is the exception; we lower 1Q estimates, but FY12 estimates remain unchanged on lower capacity guidance for the year. Our views on the stocks remain unchanged (top picks Delta (NYSE: DAL), UAL, US Airways (NYSE: LCC)), reiterated in our note titled "Haven't We Seen This Movie Before?" that was published on March 12th, 2012."
Barclays raises DAL's FY12 EPS estimate from $1.95 to $2.00, LCC's from $1.80 to $1.90 and JetBlue's (Nasdaq: JBLU) from $0.40 to $0.42.
Analyst, David E. Fintzen, said, "February RASM results may have left us uninspired - even adjusted for mild weather - but the early look at March results suggests a better end to the quarter. Perhaps more importantly, airline revenue is at its most volatile on a month-to-month basis through 1Q, making it particularly dangerous to extrapolate a miss (or, in fairness, a beat) in any given month."
"We revise our 1Q12 estimates generally higher (United Continental (NYSE: UAL) an exception) as our views on March revenue are refined. We remain below consensus for the quarter, but see less downside than we did a week ago. UAL, we'd note, is the exception; we lower 1Q estimates, but FY12 estimates remain unchanged on lower capacity guidance for the year. Our views on the stocks remain unchanged (top picks Delta (NYSE: DAL), UAL, US Airways (NYSE: LCC)), reiterated in our note titled "Haven't We Seen This Movie Before?" that was published on March 12th, 2012."
Barclays raises DAL's FY12 EPS estimate from $1.95 to $2.00, LCC's from $1.80 to $1.90 and JetBlue's (Nasdaq: JBLU) from $0.40 to $0.42.
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