Hawaiian Holdings Inc.
) is set to release its second-quarter fiscal 2014 results on Jul
In the last quarter, the company delivered an 81.82% earnings
surprise. Let's see how things are shaping up for this
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
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
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
case here as you will see below:
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.
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.
) has an earnings ESP of +3.39% and sports a Zacks Rank #1 (Strong
Spirit Airlines, Inc.
) has an earnings ESP of +11.11% and carries a Zacks Rank #1.
Alaska Air Group, Inc.
) has an earnings ESP of +0.92% and sports a Zacks Rank #1.
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SPIRIT AIRLINES (SAVE): Free Stock Analysis
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis
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