What's In The Offing For JetBlue (JBLU) In Q4 Earnings?
Zacks Investment Research | Jan 22, 2019 07:49AM ET
JetBlue Airways Corporation (NASDAQ:JBLU) is scheduled to report fourth-quarter 2018 earnings numbers on Jan 24, before the market opens.
In the last reported quarter, the company delivered a positive surprise of 2.4%. However, the bottom line declined 21.8% on a year-over-year basis, primarily due to higher costs. Total operating revenues also fell short of the Zacks Consensus Estimate. Nevertheless, the top line increased 10.5% from the year-ago figure, backed by higher passenger revenues.
Let’s see how things are shaping up for this earnings season.
Factors at Play
Fuel prices, although at modest levels lately, are expected to hamper the company’s bottom line in the fourth quarter. This is because when compared on a year-over-year basis, the fuel price estimate for the quarter to be reported remains pretty high. The carrier estimates fourth-quarter fuel cost, net of hedges, to be $2.48 per gallon. The Zacks Consensus Estimate for the same stands at $2.47 per gallon compared with $1.89 reported in the year-ago quarter.
However, passenger revenues are anticipated to remain strong in the fourth quarter, boosting the top line in turn. The airline forecast revenue per available seat mile (RASM) to climb around 2.4% year over year in the quarter under review. The Zacks Consensus Estimate for the metric is pegged at 13.06 cents, above 12.38 cents reported in the third quarter of 2018.
Additionally, the carrier expects operating cost per available seat mile excluding fuel to dip in the 1.5-3.5% band in the quarter. The consensus mark for non-fuel unit costs stands at 8.36 cents, lower than 8.63 cents reported in fourth-quarter 2017. The lower costs are expected to drive the bottom line.
JetBlue Airways Corporation Price and EPS Surprise
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