Why Did American Airlines Stock Drop After Q4 Earnings?
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American Airlines reported strong Q4 earnings due to lower fuel costs but saw an 8.7% stock drop due to a soft 2025 EPS outlook. Despite this, the stock has gained 14.4% since a previous price target, with a new target of $22.87. The company plans to reduce debt by $4 billion by FY2027, focusing less on shareholder returns compared to peers.
January 24, 2025 | 2:15 pm
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American Airlines' stock dropped 8.7% after Q4 earnings due to a soft 2025 EPS outlook, despite strong earnings from lower fuel costs. The stock has gained 14.4% since a previous target, with a new target of $22.87. The company plans to reduce debt by $4 billion by FY2027.
The 8.7% stock drop is attributed to a soft 2025 EPS outlook, overshadowing strong Q4 earnings. The company's focus on debt reduction over shareholder returns may also concern investors, contributing to the negative short-term impact.
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