JetBlue Airways Earnings: Here’s Why Investors are Not Happy Now

JetBlue Airways Corporation (NASDAQ:JBLU) 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 2.56%.

JetBlue Airways Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 31.25% to $0.11 in the quarter versus EPS of $0.16 in the year-earlier quarter.

Revenue: Rose 4.54% to $1.34 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: JetBlue Airways Corporation reported adjusted EPS income of $0.11 per share. By that measure, the company missed the mean analyst estimate of $0.14. It missed the average revenue estimate of $1.35 billion.

Quoting Management: “Today, we reported our thirteenth consecutive quarter of profitability,” said Dave Barger, JetBlue’s President and Chief Executive Officer. “Although second quarter results were negatively impacted by a sluggish economic environment and continued maintenance cost pressures, our crewmembers remained focused on running a safe, reliable airline and delivering excellent service to our customers. We believe we are well positioned to expand margins in the second half of the year as we expect maintenance cost pressures to lessen and unit revenue performance to improve.”

Key Stats (on next page)…

Revenue increased 2.77% from $1.3 billion in the previous quarter. EPS increased 120% from $0.05 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 $0.20 to a profit $0.19. For the current year, the average estimate has moved down from a profit of $0.53 to a profit of $0.51 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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