Alaska Air Group Earnings: Profit Altitude Lowered

Alaska Air Group, Inc. (NYSE:ALK) delivered a profit and missed Wall Street’s expectations, AND met the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.86%.

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Alaska Air Group, Inc. Earnings Cheat Sheet

Results: Net income decreased -31.25% to $44 million (61 cents per diluted share) in the quarter versus a net gain of $64 million in the year-earlier quarter.

Revenue: Rose 8.21% to $1.13 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Alaska Air Group, Inc. reported adjusted net income of 70 cents per share. By that measure, the company missed the mean analyst estimate of $0.71. It met the average revenue estimate of $1.13 billion.

Quoting Management:“We’re very pleased with our strong performance in 2012, and we are moving ahead in 2013 to make Alaska a great business as well as a great airline,” Chief Executive Officer Brad Tilden said…

“I want to thank our 13,000 employees who are dedicated to providing our award-winning service, along with our loyal customers for their business and our investors who continue to put their trust in our company and our future.”

Key Stats:

Revenue decreased 11.18% from $1.27 billion in the previous quarter. Net income decreased 73.07% from $163.4 million 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 $0.58 to a profit $0.52. For the current year, the average estimate has moved down from a profit of $4.78 to a profit of $4.72 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)