Alaska Air Group Earnings: Here’s Why Shares are Up Now

Alaska Air Group, Inc. (NYSE:ALK) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.2%.

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Alaska Air Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 58.97% to $0.62 in the quarter versus EPS of $0.39 in the year-earlier quarter.

Revenue: Rose 7.09% to $1.11 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Alaska Air Group, Inc. reported adjusted EPS income of $0.62 per share. By that measure, the company beat the mean analyst estimate of $0.53. It missed the average revenue estimate of $1.13 billion.

Quoting Management: “Our record performance in what is seasonally our weakest quarter is due to steady demand that kept pace with our growth, and to the many changes we’ve made to improve our business over the last several years,” Alaska Air Group CEO Brad Tilden said. “Looking ahead, we’re facing increased competition in certain markets, and we will closely monitor the environment and continue to adjust our plans to appropriately address these challenges. Our first quarter results, and our ability to be flexible and adapt to an ever-changing industry landscape, would not be possible without the dedication and determination of our employees at Alaska and Horizon.”

Key Stats (on next page)…

Revenue decreased 1.7% from $1.13 billion in the previous quarter. EPS decreased 11.43% from $0.70 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.74 to a profit $1.77. For the current year, the average estimate has moved up from a profit of $5.46 to a profit of $5.57 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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