Alaska Air Group, Inc.
) to beat expectations when it reports its second-quarter 2014
results before the market opens on Jul 24, 2014.
Why a Likely Positive Surprise?
Our proven model shows that Alaska Air is likely to beat
earnings this quarter because it has the right combination of two
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, stands at +0.92%. This
is because the Most Accurate estimate is poised at $1.10 whereas
the Zacks Consensus Estimate is pegged at $1.10. A favorable Zacks
ESP serves as a meaningful and leading indicator of a likely
positive earnings surprise.
Alaska Air currently has a Zacks Rank #1 (Strong Buy). Note that
the stocks with Zacks Rank #1, 2 or 3 have a significantly higher
chance of beating earnings. However, the Sell-rated stocks (#4 and
5) should never be considered going into an earnings
The combination of Alaska Air's Zacks Rank #1 and +0.92% ESP
makes us confident of a positive earnings beat.
What is Driving the Better-Than-Expected
Despite volatile jet fuel prices, Alaska Air's strong branding
and product differentiation allows it to offer its customers a
unique flying experience. Moreover, the company is making continued
progress in expanding its product and service offerings on board
and on the ground to boost ancillary revenues and enhance ticket
Alaska Air is expected to benefit from an improving market
scenario in the forthcoming quarter. A sharp drop in the U.S.
unemployment rate and the improving pace of job creation bodes well
for the U.S. economy. This, in turn, could prove beneficial for the
overall airline industry
Other Stocks to Consider
Other companies you may consider on the basis of our model,
which have the right combination of elements to post an earnings
beat this quarter are as follows:
American Airlines Group Inc.
) has an earnings ESP of +1.56% and a Zacks Rank #1.
JetBlue Airways Corporation
) has an earnings ESP of +5.26 and a Zacks Rank #2.
United Continental Holdings, Inc.
) has an earnings ESP of +1.37% and a Zacks Rank #2 (Buy).
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JETBLUE AIRWAYS (JBLU): Free Stock Analysis
UNITED CONT HLD (UAL): Free Stock Analysis
AMER AIRLINES (AAL): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis
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