IAG Share Price: What To Expect From Q4 Earnings?

IAG provides passenger and cargo transportation services all over the world and operates a fleet of 600 aircraft under names like Iberia, Aer Lingus, or British Airways. Strongly affected by the pandemic, the airline industry suffered its worst decline ever. As such, IAG’s share price declined in 2020 in line with the industry, only recovering in the last few months. Year-to-date, its shares are down -3.56%. 

When Does IAG Report Q4 Earnings?

IAG reports the 2020 full-year results and the 26th of February.

Market Expectations from IAG’s Earnings Statement?

(Click on image to enlarge)

The market expects a further decline in EPS of about -$6.42 on the back of a depressed industry due to traveling restrictions caused by the pandemic. Any positive surprise should be enough to trigger a market reaction especially considering the fact that IAG’s technical pictures look like a bottoming pattern may be in place.

IAG Shares: Technical Analysis

The technical perspective improved significantly in the last period. We see the dramatic drop in price in April 2020 when the world literally shut down due to the pandemic, and then a consolidation around those levels.

What is interesting is that the market made a new lower low and then bounced back – this usually happens in an inverted head and shoulders pattern. The pattern looks even more compelling because of a double bottom forming during the “head” of the pattern, reinforcing the reversal potential.

On a positive earnings surprise, the next resistance level is the neckline of the inverted head and shoulders pattern. A break and close above the neckline will trigger some interest toward the measured move, calculated as the distance from the head to the neckline, projected from the neckline.

On the flip side, a negative earnings surprise may lead to the price retesting the lows. If the market moves below the double bottom, the reversal pattern gets invalidated.

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Disclaimer: None of the content in this article should be viewed as investment advice or a recommendation to buy or sell. Past performance/statistics may not necessarily reflect future ...

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