Morgan Stanley Feels Uncertainty About Atlas Air Worldwide Holdings

In a report published Thursday, Morgan Stanley analyst John D. Godyn reiterated an Underweight rating on Atlas Air Worldwide Holdings AAWW. In the report, Morgan Stanley noted, “AAWW reported a 4Q13 EPS beat of $1.66 vs. consensus of $1.43. However, mgmt's 2014 outlook called for several percentage points of YoY decline in total block hours and a $0.70 EPS headwind as a result of reduced military activities. Assuming flattish YoY cargo trends, commentary suggests ~$3.10 EPS in 2014. This is well below consensus of $3.85 as well as our own $3.50, which we revised recently along with our downgrade earlier this week. Mgmt's outlook also assumes that the three 747-8s which were returned by British Airways recently would be re-leased; but, the timing, customers, and economics of the new leases are unclear.” Atlas Air Worldwide Holdings closed on Wednesday at $31.43.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorReiterationAnalyst RatingsJohn D. GodynMorgan Stanley
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!