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American Airlines Group (AAL) Beats on Q3 Earnings

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American Airlines GroupAAL came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. The Fort Worth, Texas based company serves customers with more than 6,700 daily flights in more than 50 nations across the globe.

American Airlines Group has a healthy track record with respect to earnings. The company has delivered positive earnings surprises in each of the last four quarters, with an average beat of 1.36%.

Zacks Rank : Currently, American Airlines Group has a Zacks Rank #2 (Buy), but that could change following the company's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings : American Airlines Group beat on earnings in the third quarter of 2015. Adjusted earnings per share came in at $2.77, beating the Zacks Consensus Estimate of $2.72.

Revenue : Revenues of $10.71 billion were 3.9% below the year-ago figure. Quarterly revenues were marginally short of the Zacks Consensus Estimate of $10.72 billion.

Key Stats : American Airlines Group's results in the quarter benefited from low fuel costs. This is because fuel costs account for a major chunk of an airline's operating expenses. During the quarter, the company bought back 38.4 million shares for $1.56 billion Moreover, the board of directors authorized an additional $2 billion share buyback program which is expected to be completed by Dec 31, 2016. We are impressed by the company's efforts to reward shareholders through stock repurchases and dividend payments.

Stock Price : The earnings beat pleased the investors. Shares of the company were up 3.24% in pre-market trading at the time of writing.

Check back later for our full write up on this American Airlines Group earnings report later!

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


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

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