Will Hawaiian Holdings (HA) Miss Earnings Estimates? - Analyst Blog


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Hawaiian Holdings Inc. ( HA ) is set to release its second-quarter fiscal 2014 results on Jul 22, 2014.

In the last quarter, the company delivered an 81.82% earnings surprise. Let's see how things are shaping up for this announcement.

Factors to Be Considered This Quarter

Hawaiian Holdings 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.

Moreover, a healthy financial profile coupled with several promotional schemes will attract customers and strengthen the company's position in the industry. However, high jet fuel prices coupled with a constant rise in international capacity as against demand could weigh on the performance of the company while moving ahead.

Earnings Whispers

Our proven model does not conclusively show that Hawaiian Holdings is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here as you will see below:

Earnings ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is currently pegged at -6.06%. This is because the Most Accurate Estimate is 31 cents while the Zacks Consensus Estimate is higher at 33 cents.

Zacks Rank: Hawaiian Holdings' Zacks Rank #4 (Sell) decreases the predictive power of ESP.

We caution investors against the stock going into the earnings announcement, as an Earnings ESP of -6.06% combined with a Zacks Rank # 4 deters us from being confident of an earnings surprise.

Other Stocks to Consider

Here are some other companies to consider as our model shows they have the right combination of elements to post an earnings beat this quarter.

Southwest Airlines Co. ( LUV ) has an earnings ESP of +3.39% and sports a Zacks Rank #1 (Strong Buy).

Spirit Airlines, Inc. ( SAVE ) has an earnings ESP of +11.11% and carries a Zacks Rank #1.

Alaska Air Group, Inc. ( ALK ) has an earnings ESP of +0.92% and sports a Zacks Rank #1.

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SPIRIT AIRLINES (SAVE): Free Stock Analysis Report

HAWAIIAN HLDGS (HA): Free Stock Analysis Report

SOUTHWEST AIR (LUV): Free Stock Analysis Report

ALASKA AIR GRP (ALK): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
More Headlines for: SAVE , HA , LUV , ALK

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