Copa Holdings S.A.
)'s fourth quarter earnings and sales missed the Zacks Consensus
estimates, though the results grew on a year over year basis.
The Panama based airline passenger and cargo services
company's adjusted earnings per share for the fourth quarter grew
4.1% over the prior year quarter to $2.00. However, earnings fell
short of the Zacks Consensus Estimate of $2.23 by 9.9%.
Adjusted earnings exclude special items like fuel hedging
instruments. Including these special items, EPS was $1.95, a
decrease of 17.4% year over year.
In the reported quarter, sales increased 17.7% to $599.8 million,
against $509.4 million reported a year ago. This was a result of
increased passenger traffic in the quarter of 23.7%, largely
driven by international traffic growth of 26.0%. Also, the
quarter saw a 22.3% increase in capacity including international
capacity growth of 24.4%. However, revenue fell short of the
Zacks Consensus Estimate of $605.0 million.
Operating expenses for the quarter escalated 24.5% to $495.6
million, compared with the year-ago quarter. Operating income
dropped 6.5% to $104.3 million, due to an increase in fuel
charges coupled with a decline in operating revenue per available
Exiting the fourth quarter, the company had cash and cash
equivalents of $651.1 million, a decline of 10.1% sequentially.
Long-term debt of the company was up 0.2% sequentially to $1.1
At the end of the quarter, Copa had a fleet of 83 aircraft,
which consists of
)'s 57 aircraft and
)'s 26. However, subsequent to the quarter, the company entered
into a sale and lease back agreement of four aircraft with MC
Aviation Partners, a subsidiary of
), which is scheduled for delivery in 2013. Also, a similar
contract was entered into with SMBC Aviation Capital for four
aircraft to be delivered in 2014.
The stock currently holds a Zacks Rank #3 (Hold).
COPA HLDGS SA-A (CPA): Free Stock Analysis
EMBRAER AIR-ADR (ERJ): Free Stock Analysis
(MSBHY): ETF Research Reports
To read this article on Zacks.com click here.