Analysts on Wall Street project that Alaska Air Group (ALK) will announce quarterly loss of -$1.61 per share in its forthcoming report, representing a decline of 109.1% year over year. Revenues are projected to reach $3.27 billion, increasing 4.2% from the same quarter last year.
The current level reflects a downward revision of 102.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific Alaska Air metrics that are commonly monitored and projected by Wall Street analysts.
Analysts forecast 'Total Passenger Revenue' to reach $2.93 billion. The estimate points to a change of +4.2% from the year-ago quarter.
Analysts expect 'Revenue- Cargo and other' to come in at $134.01 million. The estimate indicates a year-over-year change of +9.8%.
It is projected by analysts that the 'Passenger Load Factor' will reach 83.2%. The estimate compares to the year-ago value of 81.3%.
The average prediction of analysts places 'Available seat miles (ASM)' at 21.63 billion. The estimate compares to the year-ago value of 21.22 billion.
Based on the collective assessment of analysts, 'Total revenue per ASM (RASM)' should arrive at N/A. Compared to the current estimate, the company reported N/A in the same quarter of the previous year.
The consensus estimate for 'Revenue passenger miles (RPM)' stands at 18.08 billion. The estimate compares to the year-ago value of 17.26 billion.
The collective assessment of analysts points to an estimated 'Passenger Yield' of N/A. The estimate is in contrast to the year-ago figure of N/A.
The consensus among analysts is that 'Operating expenses per ASM, excluding fuel and special items' will reach N/A. Compared to the present estimate, the company reported N/A in the same quarter last year.
According to the collective judgment of analysts, 'Fuel gallons' should come in at 287 millions of gallons. The estimate is in contrast to the year-ago figure of 262 millions of gallons.
Analysts' assessment points toward 'ASMs per fuel gallon' reaching $76.2 gallons. The estimate compares to the year-ago value of $80.9 gallons.
Analysts predict that the 'Revenue passengers' will reach 15.05 billion. The estimate compares to the year-ago value of 13.16 billion.
The combined assessment of analysts suggests that 'Hawaiian Airlines- Available seat miles' will likely reach 5.63 billion. Compared to the present estimate, the company reported 5.37 billion in the same quarter last year.
View all Key Company Metrics for Alaska Air here>>>Over the past month, shares of Alaska Air have returned +9.4% versus the Zacks S&P 500 composite's +5.2% change. Currently, ALK carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).