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Atlas Air (AAWW) to Report Q2 Earnings: What's in the Cards?

Atlas Air Worldwide Holdings AAWW is scheduled to report second-quarter 2021 results on Aug 5, before market open.

The company has a stellar surprise record with its earnings having topped the Zacks Consensus Estimate in each of the last four quarters, the average being 59.4%.  

With this, let’s take a look at the factors that might have impacted the company’s June-quarter performance.

Atlas Air Worldwide Holdings Price and EPS Surprise

 

Atlas Air Worldwide Holdings Price and EPS Surprise

Atlas Air Worldwide Holdings price-eps-surprise | Atlas Air Worldwide Holdings Quote

 

We expect Atlas Air’s second-quarter performance to have been buoyed by upbeat airfreight demand and higher airfreight volumes.  The company is likely to have benefitted from higher commercial cargo charter yields in the quarter to be reported.

However, the company’s second-quarter numbers are likely to have been impacted by pandemic-related expenses (including pilot premium pay and operational costs). Increase in average fuel price per gallon as oil prices move north is likely to have impacted the bottom line in the to-be-reported quarter.

What Does the Zacks Model Say?

Our proven Zacks model does not predict an earnings beat for Atlas Air this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here as illustrated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Atlas Air has an Earnings ESP of 0.00% as the Most Accurate Estimate of $3.09 is in line with the Zacks Consensus Estimate.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Atlas Air carries a Zacks Rank #3, currently.

Highlights of Q1 Earnings

In the last reported quarter, the company reported earnings per share of $2.45, surpassing the Zacks Consensus Estimate of $1.75. Revenues increased 33.8% to $861.3 million from the year-ago quarter’s levels. The top line also surpassed the Zacks Consensus Estimate of $821 million.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Eagle Bulk Shipping Inc. EGLE, Genco Shipping & Trading Limited GNK and Mesa Air Group, Inc. MESA, as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Eagle Bulk Shipping has an Earnings ESP of +5.98% and a Zacks Rank of 3 currently. The company will release second-quarter earnings on Aug 5.

Genco Shipping & Trading has an Earnings ESP of +11.81% and sports a Zacks Rank #1, presently. The company will announce second-quarter results on Aug 4.

Mesa Air Group has an Earnings ESP of +15.56% and is currently Zacks #3 Ranked. The company is set to release third-quarter fiscal 2021 results on Aug 9.


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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.

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