Alaska Air Group Misses Where it Counts

Alaska Air Group (NYS: ALK) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Alaska Air Group met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share shrank significantly.


Margins dropped across the board.

Revenue details
Alaska Air Group booked revenue of $1.13 billion. The nine analysts polled by S&P Capital IQ wanted to see revenue of $1.13 billion on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $1.04 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.70. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.72 per share. GAAP EPS of $0.61 for Q4 were 31% lower than the prior-year quarter's $0.88 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 21.6%, 820 basis points worse than the prior-year quarter. Operating margin was 6.5%, 730 basis points worse than the prior-year quarter. Net margin was 3.9%, 220 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.12 billion. On the bottom line, the average EPS estimate is $0.53.

Next year's average estimate for revenue is $4.99 billion. The average EPS estimate is $5.43.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alaska Air Group is outperform, with an average price target of $50.00.

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The article Alaska Air Group Misses Where it Counts originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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