Atlas Air Worldwide Holdings Earnings: Here’s Why the Stock is Falling Now

Atlas Air Worldwide Holdings Inc. (NASDAQ:AAWW) 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 0.06%.

Atlas Air Worldwide Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 33.05% to $0.79 in the quarter versus EPS of $1.18 in the year-earlier quarter.

Revenue: Decreased 4.97% to $403.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Atlas Air Worldwide Holdings Inc. reported adjusted EPS income of $0.79 per share. By that measure, the company missed the mean analyst estimate of $0.87. It missed the average revenue estimate of $409.33 million.

Quoting Management: “Earnings in the second quarter of 2013 were driven by the strength of our ACMI operations, especially our new 747-8 freighters,” said William J. Flynn, President and Chief Executive Officer.
“Our diversified business mix, with our expanding 767 service, growing CMI operations, and ongoing continuous improvement initiatives, enabled us to perform well in a quarter that was challenged by lower AMC Charter demand and softer AMC and Commercial Charter rates.”

Key Stats (on next page)…

Revenue increased 6.96% from $377.34 million in the previous quarter. EPS increased 259.09% from $0.22 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 $1.5 to a profit $1.55. For the current year, the average estimate has moved down from a profit of $4.89 to a profit of $4.82 over the last ninety days.

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