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Will Copa Holdings SA's (CPA) Q2 Earnings Disappoint? - Analyst Blog

Copa Holdings SACPA is set to release second-quarter 2015 financial results after the market closes on Aug 12.

In the last quarter, the company posted a negative 20.02% earnings surprise. Let's see how things are shaping up for this announcement.

Factors at Play this Quarter

Copa Holdings continues to face the brunt of the deterioration in the Brazilian economy and the weakening real against the strong U.S. dollar. We also believe that these factors have forced most passengers to defer their travel plans. Moreover, stiff competition from the likes of LATAM Airlines, Azul Brazilian Airlines and GOL Linhas has affected air traffic for the company.

Last month, the company reported stiff fall in load factor (percentage of seats filled by passengers). Taking these factors into consideration, we remain highly apprehensive about the success of the carrier in the upcoming quarter.

Earnings Whispers

Our proven model does not conclusively show that Copa Holdings is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or at least #3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.

Zacks ESP: The earnings ESP for the company currently stands at -13.39% as the Most Accurate estimate is pegged at 97 cents while the Zacks Consensus Estimate is higher at $1.12.

Zacks Rank: Copa Holdings carries a Zacks Rank #5 (Strong Sell). Please note that Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some companies you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter.

Ryanair Holdings plc RYAAY has an earnings ESP of +2.11% and a Zacks Rank #1.

The Madison Square Garden Company MSG has an earnings ESP of +4.76% and a Zacks Rank #3.

JetBlue Airways Corporation JBLU has an earnings ESP of +1.89% and a Zacks Rank #2.

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JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report

COPA HLDGS SA-A (CPA): Free Stock Analysis Report

MADISON SQUARE (MSG): Free Stock Analysis Report

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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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