Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Analyst Says Alaska Air’s Guidance Implies ‘Strong Finish’ To Q1

Courtesy of Benzinga.

Analyst Says Alaska Air's Guidance Implies 'Strong Finish' To Q1

Alaska Air Group, Inc. (NYSE: ALK) revised its revenue per available seat mile (RASM) higher in a regulatory filing, which implies the company saw a “strong finish” to the first quarter.

The Analyst

Raymond James’ Savanthi Syth maintains a Strong Buy rating on Alaska Air with an unchanged $80 price target.

The Thesis

Alaska Air revised its first quarter RASM guidance from a range of 11.97 -12.07 cents to a new range of 12.08-12.10 cents. Syth says based on the upward revision the company’s first quarter EPS is tracking at 15 cents per share, which is above the consensus estimate of a 1-cent loss. The company saw good cost execution during the quarter despite notable weather issues in February.

The company’s Hawaii operations remain in negative year-over-year RASM territory but its performance looks to be in-line with management’s expectations, the analyst wrote in a note. In fact, Southwest Airlines Co (NYSE: LUV)’s entry into the region hasn’t shown an incremental drag so far. In addition, intra-California pricing which was an issue in 2018 has now improved back to 2017′s levels.

Alaska Air is finalizing a two-year focus on becoming a single airline after closing the acquisition of Virgin America in late 2016. The company is now in a better position to benefit from a significantly larger platform coupled with diminishing headwinds.

Price Action

Alaska Air’s stock was trading higher by around 1.4 percent at $60.56 per share.

Related Links:

Barclays Fastens Seat Belt for Earnings Growth For Spirit, But Sees Shorter Runway For JetBlue

Imperial Downgrades Delta And United Continental, Sees Clear Skies For Most Other US Airline Stocks

Latest Ratings for ALK

Date Firm Action From To
Apr 2019 Credit Suisse Maintains Outperform Outperform
Mar 2019 Buckingham Maintains Buy Buy
Mar 2019 Imperial Capital Downgrades Outperform In-Line

View More Analyst Ratings for ALK


View the Latest Analyst Ratings

Posted-In: Airliner airlines Raymond James Savanthi SythAnalyst Color Analyst Ratings Best of Benzinga


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!