American Airlines (AAL), Stock Gains 9.71% with Rosy Q4View

Shares American Airlines AAL On Jan 12, the trading session closed at $16.83. The gain was 9.71% The bullish guidance by management for the fourth quarter 2022 that was driven by strong air-travel demand drove the uptick. On January 26, 2023, the detailed results will be published.

American Airlines expects fourth quarter 2022 earnings per share of $1.12 to $1.17 (prior view: $0.50 to $0.70). The Zacks Consensus Estimate is at 60 cents per Share.

The adjusted operating margin is now expected to be between 10.25%-10.5% (priority view: 5.5-7.5%). Revenues will now experience 16-17% growth (priority view: 11-13%).

Fourth-quarter 2022 average fuel cost per gallons is expected to be in the $3.47-$3.52 range (priority view: $3.51–$3.56 range). The fuel gallon consumption is estimated to reach $979 million (priority view: 990 million).

The fourth quarter total revenue per seat mile will be almost 24% higher than the fourth quarter 2019. Prior view: 18-20%). Expected increase of almost 10% in total operating costs per available mile (CASM: excludes fuel and special items). Prior view: Up 8-10%)

American Airlines expects that the system capacity will decline by 6.1% in the December quarter (priority view: down 5-7%) compared to the fourth-quarter 2019 figure.

American Airlines shares rose 18.1% over six months thanks to strong demand for air travel. That’s more than 17.3% growth in the industry.

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Zacks Ranks Other Stocks to Take into Account

American Airlines currently carries a Zacks Rank 2 (Buy).

The Zacks Transportation sector also has some top-ranked stocks. Teekay Tankers Ltd. Gol Linhas Aereas Inteligentes S.A. GOL. Teekay Tankers currently has a Zacks rank #1 (Strong Buy), and Gol Linhas has a Zacks rank #2. You can view the complete list of today’s Zacks #1 Rank stocks here.

AAL’s expected earnings growth rate for the current fiscal year is more than 100 percent. AAL posted an average earnings surprise of 8.62% in its trailing four-quarters.

The Zacks Consensus Estimate for AAL’s current-year earnings has improved 19.3% over the past 90 days. AAL shares gained 18.1% during the past six month.

Teekay Tankers is expecting a 143.11% increase in earnings for the current fiscal year. TNK reported a 4Q4 earnings surprise of 42.23%. Teekay Tankers expects a long-term growth rate of 3%.

The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. TNK shares rose 63% in six months.

Gol Linhas is expected to grow earnings by 50.9% in the current fiscal year.

GOL shares have risen 13.7% in the past six months.

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American Airlines Group Inc. (AAL) : Free Stock Analysis Report

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