Copa Holdings CPA reported its second quarter results after market close on Wednesday. The company beat estimates on revenue and earnings per share, but fell short on guidance.
The Panama-based company earned $2.61 per share, good for a $0.39 beat while revenue of $673.6 million topped estimates by $6.24 million. However, Copa revised its operating margin guidance for the year down to a range of 18 percent to 20 percent from a previous 19 percent to 21 percent.
According to Copa, the downward revision was due to capacity reductions the company is making in Venezuela and a transition to more non-bolivar sales.
Analysts are responding negatively to Copa's report Thursday morning. Analysts at Raymond James downgraded shares to Market Perform from Strong Buy while removing a $167 price target. Joining Raymond James in a downgrade was Evercore, which downgraded shares to Equal-weight from Overweight with a price target lowered to $150 from a previous $160.
Analysts at Deutsche Bank highlighted Copa's strong quarterly figures, but pointed at the reduced fiscal 2014 outlook, while maintaining a Buy rating and $180 price target.
Shares of Copa were recently trading at $132.25, down 10.3 percent.
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