- Alaska Air has raised its fourth-quarter adjusted earnings per share (EPS) forecast to 40 to 50 cents, up from the previous estimate of 20 to 40 cents.
- The full-year adjusted EPS forecast has also been increased to between $4.25 and $4.50, previously seen as $3.50 to $4.50.
- The company anticipates a capacity increase of 1.5%, maintaining its previous estimate range of 1.5% to 2.5%.
- Fourth-quarter non-operating expenses are expected to be around $45 million, an improvement from the earlier projection of approximately $50 million.
- The Board has approved a share buyback program of up to $1 billion.
- EPS forecast improvements are attributed to stronger revenue and lower non-operating expenses.
- October and November showed strong last-minute bookings and November revenue performed better than expected.
- December revenue is surpassing previous expectations due to high holiday demand.
- Capacity experienced a slight decline due to challenging weather conditions.
- Alaska Air predicts at least $5.75 adjusted EPS in 2025, higher than the current estimate of $5.58.
- The company’s stock has favorable analyst ratings with 13 buys, 3 holds, and no sells.
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Alaska Air Group on Smartkarma
Alaska Air Group is gaining attention from analysts on Smartkarma, an independent investment research network. Baptista Research‘s recent coverage highlights the airline’s strong financial and operational performance in the second quarter of 2024. With a GAAP net income of $220 million and adjusted net income of $327 million, Alaska Air Group‘s revenue reached a record high of $2.9 billion. Analysts are optimistic about the airline’s network optimization and capacity management efforts, driving confidence in its future prospects.
A look at Alaska Air Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have assessed Alaska Air Group, Inc.’s long-term outlook through their Smart Scores, which gauge various aspects of the company. With a high Growth score of 5, Alaska Air Group is positioned well for expansion and development in the airline industry. Additionally, the Momentum score of 5 suggests strong positive trends in the company’s performance, indicating a promising trajectory for its future growth.
However, it’s worth noting that Alaska Air Group scores lower in Dividend and Resilience, with scores of 1 and 2 respectively. This indicates that the company may not be a top choice for investors seeking steady dividend income or those looking for resilience in challenging market conditions. Despite this, the overall positive outlook portrayed by the Value score of 4, coupled with the robust Growth and Momentum scores, suggests that Alaska Air Group holds significant potential for long-term investors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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