AMR 4Q Trending 1.8% Ahead Of Expectations, Hudson Securities Reports

Hudson Securities reports that AMR Corporation AMR 4Q revenues are trending $100M, or 1.8%, ahead of expectations, “prompting us to narrow our loss to - $0.30/ share (vs prior -$0.55).” “Our full year 2010 loss narrows to -$420M, or -$1.26 /share accordingly,” Hudson Securities writes. “If we deduct the $600M AMR reports is their labor cost disadvantage relative to peers, add back $500M for the carrier's cornerstone strategy, our 2010 operating margin would rise from 1.8% to 6.6%, which would nonetheless still lag DAL's 9.0% margin, UAL's 7.0%, & LUV's 9.7%.” AMR Corporation closed Friday at $7.81.