Research Desk Line-up: United Continental Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 11, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on American Airlines Group Inc. (NASDAQ: AAL), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=AAL, following the Company's disclosure of its financial results on July 27, 2017, for the second quarter fiscal 2017. The Company's revenue increased 7.2% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Major Airlines industry. Pro-TD has currently selected United Continental Holdings, Inc. (NYSE: UAL) for due-diligence and potential coverage as the Company announced on July 18, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on United Continental when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on AAL; also brushing on UAL. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/'symbol=AAL
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Earnings Reviewed
For three months ended June 30, 2017, American Airlines Group's total revenue increased 7.2% on a y-o-y basis to $11.11 billion from $10.36 billion in Q2 FY16. The increase was due to strong passenger demand and improved yield. For the reported quarter, mainline passenger's revenue increased 7.5% to $7.75 billion on a y-o-y basis and regional passenger's revenue increased 2.8% to $1.84 billion on a y-o-y basis. The Company's total revenue surpassed analysts' expectations of $11.09 billion.
For Q2 FYI7, American Airlines Group's cargo revenue grew 13.1% to $196 million on a y-o-y basis due to a 15.1% increase in cargo ton miles. The Company's reported quarter TRASM increased by 5.7% on a y-o-y basis, driven by a 1.4% increase in total available seat miles.
American Airlines Group's total cost per available seat mile (CASM) was $0.133, up 9.6% on a y-o-y basis. Excluding fuel and special items, total CASM was $0.105, up 6.8% on a y-o-y basis.
During Q2 FY17, the Company's total operating expenses increased 11.1% to $9.57 billion from $8.61 billion in Q2 FY16. The increase was due to increase in consolidated fuel expense and salaries. For the reported quarter, American Airlines Group's operating income decreased 12% to $1.54 billion from $1.75 billion in Q2 FY16. During Q2 FY17, the Company's adjusted operating income decreased 4.4% to $1.74 billion from $1.82 billion in Q2 FY16.
For the reported quarter, American Airlines Group's EBT decreased 13.4% to $1.29 billion from $1.49 billion in Q2 FY16. During Q2 FY17, the Company's EBT margin decreased 280 basis points to 11.6% of revenue from 14.4% of revenue in the same quarter last year. During Q2 FY17, American Airlines Group's adjusted EBT margin decreased 190 basis points to 13.5% of revenue from 15.4% of revenue in Q2 FY16.
For the reported quarter, American Airlines Group's net income decreased 15.5% to $803 million on a y-o-y basis from $950 million in Q2 FY16. During Q2 FY17, the Company's adjusted net income decreased 5.6% to $944 million on a y-o-y basis from $1.00 billion in Q2 FY16. During Q2 FY17, the Company's diluted EPS decreased 3% to $1.63 on a y-o-y basis from $1.68 in the same quarter last year. For the reported quarter, American Airlines Group's adjusted diluted EPS increased 8.5% to $1.92 on a y-o-y basis from $1.77 in Q2 FY16. The increase was mainly attributable to share repurchase program, which resulted in a reduction in weighted average diluted share count. The adjusted diluted EPS surpassed analysts' expectations of $1.87.
On July 25, 2017, the Company's Board of Directors declared dividend of $0.10 per share on its common stock payable on August 28, 2017, to stockholders of record as of August 14, 2017.
Balance Sheet
As on June 30, 2017, American Airlines Group had $9.3 billion in total available liquidity, including cash and investments of $6.9 billion and $2.4 billion in undrawn revolver capacity. The Company also had a restricted cash position of $554 million.
During Q2 FY17, the Company raised $645 million in proceeds to finance 11 aircraft through private mortgages and sale leaseback transactions. During Q2 FY17, American Airlines Group's also completed repricing on $735 million facility secured by London Heathrow franchise at the rate of LIBOR plus 200.
During Q2 FY17, American Airlines Group repurchased 10.0 million shares totaling $450 million.
Outlook
For Q3 FY17, American Airlines Group expects EBT to be between 10%-12%. For FY17, the Company expects system ASM growth to be 2.7% and gross aircraft capital expenditure to be $4.1 billion.
Stock Performance
American Airlines' share price finished yesterday's trading session at $48.55, dropping 1.72%. A total volume of 5.41 million shares have exchanged hands. The Company's stock price soared 4.32% in the last three months, 4.86% in the past six months, and 42.04% in the previous twelve months. Additionally, the stock gained 3.98% since the start of the year. Shares of the Company have a PE ratio of 12.01 and have a dividend yield of 0.82%. The stock currently has a market cap of $23.53 billion.
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