Why Is Copa Holdings (CPA) A Must-Add To Your Portfolio?
Zacks Investment Research | Aug 29, 2016 11:03PM ET
Latin American carrier Copa Holdings (NYSE:CPA) has been outperforming of late. Shares of this Zacks Rank #2 (Buy) carrier have gained over 16% in the past month.
Strong Second Quarter
Copa Holdings performed impressively in the second quarter, coming up with better-than-expected earnings as well as revenues. The Panama City-based carrier’s second-quarter earnings (on an adjusted basis) of 51 cents per share were well above the Zacks Consensus Estimate of 23 cents. Quarterly revenues of $494 million also beat the Zacks Consensus Estimate of $483 million.
Average fuel price per gallon declined 21.3% year over year. Passenger traffic (on a consolidated basis) grew 6.2%, whereas capacity contracted 0.4% during the quarter. Load factor climbed 490 basis points to 78.3% as traffic expanded while capacity contracted. Naturally the strong earnings report led to the significant appreciation in share price of the carrier.
Estimates on the Upswing
We note that earnings estimates for Copa Holdings have displayed a healthy uptrend following strong second-quarter results. Over the last 30 days, the Zacks Consensus Estimate of earnings for 2016 has gone up 66 cents to $4.45 per share. The Zacks Consensus Estimate for 2017 has jumped 69 cents over the last month to $5.47 per share.
COPA HLDGS SA-A Price and Consensus
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