July 23 Alaska Air Group Inc reported a 42 percent rise in second-quarter profit and said it expects capacity to increase about 8 percent in the third quarter. The company had revenue of $1.27 billion for the quarter, compared to the consensus estimate of $1.27 billion. On a per share basis that amounted to $1.76 a share, a 56 percent increase and 3 cents more per share than the average of analysts’ predictions. That compares with $165 million, or $1.19 a share, a year ago.
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In the last fiscal quarter, Alaska Air Group, Inc. The consensus analyst estimates according to Thomson Reuters First Call for the next quarter is 2.07.
“[It is] our 25th consecutive quarterly profit and our best quarterly result ever”, Alaska Air Group CEO Brad Tilden said. They set a purchase score on the inventory. Also, CFO Brandon Pedersen sold 2,180 shares of Alaska Air Group stock in a transaction that occurred on Monday, July 6th. Analysts at Cowen and Company raised their price target on shares of Alaska Air Group from $82.00 to $87.00 and gave the company an outperform rating in a research note on Thursday. The share price can be expected to fluctuate from the mean short term target, can be seen from the standard deviation reading of $7.63.
Wall Street sell-side research firms who cover Alaska Air Group, Inc. Alaska Air Group presently has an average rating of Buy and a consensus price target of $75.52.
Note that, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Facing an intense competitive threat from Delta Air Lines, Seattle-based Alaska Airlines is putting its 8,000 employees that work directly with passengers through a series of customer-service workshops.
Delta Air Lines continues to expand on Alaska’s home turf.
Alaska Air Group ( ALK ) is the holding company of Alaska Airlines, which, together with its partner regional airlines, serves more than 100 cities throughout North America. Alaska Mainline is the Boeing 737 part of Alaska’s business. Horizon operates regional aircraft. Additionally, Alaska Regional includes an allocation of corporate overhead such as IT, finance, other administrative costs incurred by Alaska and on behalf of Horizon. In 2014, the Company carried approximately 29 million passengers. Alaska operates a fleet of passenger jets (mainline) and contracts with Horizon, SkyWest Airlines, Inc.
Alaska Air, which remained resilient despite the recent noise over supply demand mismatch, maintained a high capacity growth rate during the June quarter. (PenAir) for regional capacity under which Alaska receives all passenger revenue from those flights.
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