Copa Holdings CPA is scheduled to report third-quarter 2024 results on Nov. 20 after market close.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Copa Holdings has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 7.3%.
Copa Holdings, S.A. Price and EPS Surprise
Copa Holdings, S.A. price-eps-surprise | Copa Holdings, S.A. Quote
The Zacks Consensus Estimate for CPA’s soon-to-be-reported quarter’s earnings has been revised upward by 1.5% in the past 60 days to $3.48 per share. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $860.34 million, which indicates a decline of 1% from the year-ago levels.
Upbeat air travel demand is likely to have boosted CPA’s top line. Passenger revenues, which account for the bulk of the top line, are likely to have increased in the to-be-reported quarter. Our estimate for passenger revenues is pegged at $828 million, up 6% from the second-quarter 2024 actuals. Meanwhile, estimates for revenues from the cargo and mail segment are pegged at $24 million.
On the contrary, high operating expenses are likely to have hurt Copa Holdings’ bottom line. This surge in operating expenses is anticipated to be primarily driven by the increase in salaries, benefits and fuel costs, exacerbating CPA’s prospects in the to-be-reported quarter. Our estimate for total operating expenses in the September-end quarter has increased 3% year over year.
What Our Model Says About CPA
Our proven model does not conclusively predict an earnings beat for Copa Holdings this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
CPA has an Earnings ESP of -5.29% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Highlights of CPA’s Q2 Results
Copa Holdings’ second-quarter 2024 earnings per share of $2.88 surpassed the Zacks Consensus Estimate of $2.77 but declined 26.5% year over year. Revenues of $819.4 million lagged the Zacks Consensus Estimate of $841 million but rose 1.3% year over year due to upbeat passenger revenues.
Passenger revenues (which contributed 95.4% to the top line) increased 1% from the second quarter of 2023 due to a 10.6% year-over-year increase in passenger traffic, partly offset by an 8.7% decrease in passenger yield. Cargo and mail revenues grew 5.4% to $25.18 million due to higher volumes, partly offset by lower cargo yields.
A Stock to Consider
Here is a stock from the broader Zacks Transportation sector that investors might want to consider, as our model shows that this has the right combination of elements to beat third-quarter 2024 earnings.
ZIM Integrated Shipping Services ZIM has an Earnings ESP of +29.24% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to report third-quarter 2024 earnings on Nov. 20.
ZIM has a discouraging earnings surprise history, having surpassed the Zacks Consensus Estimate twice in the preceding four quarters and missing twice. The average miss is 0.3%.
Q3 Performances of Other Transportation Companies
Delta Air Lines DAL reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis due to high labor costs.
Revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year.
Norfolk Southern Corporation’s NSC third-quarter 2024 earnings (excluding $1.6 from non-recurring items) of $3.25 per share beat the Zacks Consensus Estimate of $3.10 and increased 22.6% year over year due to lower costs.
Railway operating revenues were $3.05 billion in the quarter under review, lagging the Zacks Consensus Estimate of $3.09 billion. However, the top line increased 2.7% year over year, with the Merchandise and Intermodal segments registering an improvement in revenues.
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