Alaska Air Group Earnings: Here’s Why the Stock is Falling Now

Alaska Air Group, Inc. (NYSE:ALK) delivered a profit and missed Wall Street’s expectations, AND 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 down 1.93%.

Alaska Air Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 3.92% to $1.47 in the quarter versus EPS of $1.53 in the year-earlier quarter.

Revenue: Rose 3.53% to $1.26 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Alaska Air Group, Inc. reported adjusted EPS income of $1.47 per share. By that measure, the company missed the mean analyst estimate of $1.51. It missed the average revenue estimate of $1.26 billion.

Quoting Management: “These results represent our 17th consecutive quarter of profitability and the second-best June quarter in our history. I want to thank our employees at Alaska and Horizon who are continuing to work hard to keep us safe and reliable, provide a great experience for our customers, and produce results that make Alaska a great place to invest,” CEO Brad Tilden said. “Although our quarterly results were down slightly, our financial performance continues to be very strong. This is why we were very pleased to recently announce the initiation of a quarterly dividend which, combined with our share repurchases, will be a key component of our capital deployment program.”

Key Stats (on next page)…

Revenue increased 10.86% from $1.13 billion in the previous quarter. EPS increased 137.1% from $0.62 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $2.28 to a profit $2.06. For the current year, the average estimate has moved down from a profit of $5.65 to a profit of $5.08 over the last ninety days.

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