On Thursday, October 22, American Airlines Group 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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