Alaska Air Group (NYSE:ALK) Releases Quarterly Earnings Results

Alaska Air Group (NYSE:ALK) issued its quarterly earnings results on Tuesday. The transportation company reported $0.36 EPS for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.03), Zacks reports. Alaska Air Group had a negative net margin of 2.58% and a negative return on equity of 5.31%. The firm had revenue of $4.31 billion during the quarter, compared to the consensus estimate of $4.31 billion. During the same quarter last year, the firm earned $1.05 earnings per share. The business’s revenue for the quarter was up 14.4% on a year-over-year basis.

Alaska Air Group Trading Down 2.3%

Shares of NYSE:ALK opened at $33.56 on Thursday. Alaska Air Group has a 12-month low of $33.03 and a 12-month high of $60.63. The business has a 50 day moving average of $40.23 and a 200-day moving average of $43.20. The company has a quick ratio of 0.51, a current ratio of 0.55 and a debt-to-equity ratio of 1.58. The stock has a market cap of $3.74 billion, a PE ratio of -9.56 and a beta of 1.33.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on ALK. JPMorgan Chase & Co. lowered their price objective on shares of Alaska Air Group from $94.00 to $92.00 and set an “overweight” rating on the stock in a report on Friday, July 24th. UBS Group reiterated a “buy” rating and set a $51.00 target price (down from $54.00) on shares of Alaska Air Group in a report on Friday, October 16th. TD Cowen lowered their price target on Alaska Air Group from $46.00 to $44.00 and set a “buy” rating on the stock in a research report on Friday, October 2nd. Bank of America raised their target price on shares of Alaska Air Group from $60.00 to $65.00 and gave the company a “buy” rating in a research note on Wednesday, July 1st. Finally, Citigroup restated a “sell” rating on shares of Alaska Air Group in a research note on Thursday. Ten research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $56.85.

Key Headlines Impacting Alaska Air Group

Here are the key news stories impacting Alaska Air Group this week:

• Positive Sentiment: Alaska Air reported third-quarter revenue of approximately $4.31 billion, up 14.4% year over year. Adjusted EPS of $0.36 exceeded the Zacks consensus estimate of $0.35, supported by strong yields and higher premium demand. Alaska Air Group Q3 Earnings Top Estimates
• Positive Sentiment: The airline continues to diversify beyond its traditional passenger business. Diversified revenue reached 54% of the mix, premium traffic increased 24.5% year over year, and Alaska highlighted planned international expansion, including new Seattle service to Osaka and Papeete. Alaska Air: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Analysts’ average price target is reported at $57.38, well above the current trading level, but price targets may not reflect the company’s worsening near-term earnings outlook. Alaska Air Group Analyst Price Target
• Negative Sentiment: Alaska reported a GAAP third-quarter loss of $1.32 per share, or $147 million, compared with $1.05 of EPS a year earlier. Although adjusted EPS was positive, it was below some analyst estimates of $0.39, underscoring margin pressure. Alaska Air Group Reports Third-Quarter Results
• Negative Sentiment: Higher-than-expected fuel expenses more than offset revenue growth. Management now expects a fourth-quarter adjusted loss of $2.00 to $2.50 per share, versus consensus for a loss of $1.14, making the guidance cut the clearest reason for the stock’s decline. Alaska Air Forecasts Larger Fourth-Quarter Loss

Insider Activity at Alaska Air Group

In other news, CEO Benito Minicucci acquired 25,000 shares of the stock in a transaction on Thursday, August 20th. The shares were purchased at an average price of $40.06 per share, for a total transaction of $1,001,500.00. Following the transaction, the chief executive officer directly owned 256,582 shares of the company’s stock, valued at approximately $10,278,674.92. This represents a 10.80% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Andrew R. Harrison sold 5,300 shares of the business’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $49.67, for a total transaction of $263,251.00. Following the completion of the sale, the executive vice president directly owned 25,528 shares of the company’s stock, valued at $1,267,975.76. This represents a 17.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.00% of the company’s stock.

About Alaska Air Group

Alaska Air Group, Inc is an airline holding company headquartered in Seattle, Washington. Its principal subsidiaries include Alaska Airlines and Hawaiian Airlines, which operate under separate brands while serving passengers throughout North America, the Pacific and other international markets.

Alaska Airlines provides scheduled passenger and air cargo services across the United States, Canada, Mexico, Costa Rica and the Bahamas, with a strong presence on the U.S. West Coast and in Alaska.