Market Overview

Earnings Outlook For American Airlines Group


On Thursday, October 22, American Airlines Group (NASDAQ: AAL) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

Net Income, Earnings, And Earnings Per Share

Earnings and earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equates to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street expects an EPS loss of $5.88 and sales around $2.76 billion. In the same quarter last year, American Airlines Group reported EPS of $1.42 on revenue of $11.91 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Thursday, EPS would have fallen 514.08%. Revenue would be down 76.83% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -7.70 -2.33 1.21 1.40
EPS Actual -7.82 -2.65 1.15 1.42
Revenue Estimate 1.44 B 8.94 B 11.32 B 11.95 B
Revenue Actual 1.62 B 8.52 B 11.31 B 11.91 B

Stock Performance

Over the last 52-week period, shares are down 57.33%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.


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