Alaska Air Lowers FY23 EPS Outlook To $4.25 - $4.75 From $5.50 To $7.50 Prior, Vs, $5.24 Estimate
Portfolio Pulse from Benzinga Newsdesk
Alaska Air has lowered its FY23 EPS outlook to $4.25 - $4.75 from the previous $5.50 to $7.50, which is below the $5.24 estimate. The company expects Q4 capacity to increase by 11% to 14% and total revenue to rise by 1% to 4% compared to 2022. The cost per ASM excluding fuel and special items is expected to decrease by 3% to 5%. The full year expectation for capacity is an increase of 12% to 13%, total revenue increase of 7% to 8%, and a decrease in cost per ASM excluding fuel and special items by 1% to 2%.
October 19, 2023 | 10:05 am
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NEGATIVE IMPACT
Alaska Air's lower than expected FY23 EPS outlook may negatively impact its stock price in the short term. However, the expected increase in capacity and revenue, along with a decrease in costs, could potentially offset this impact.
The company's lower than expected EPS outlook for FY23 is a negative signal for investors, which could lead to a decrease in the stock price. However, the expected increase in capacity and revenue, along with a decrease in costs, indicates operational efficiency which could potentially offset the negative impact of the lower EPS outlook.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100