American Airlines (AAL) Reports Q1 Loss, Lags Revenue Estimates

American Airlines (AAL - Free Report) came out with a quarterly loss of $4.32 per share versus the Zacks Consensus Estimate of a loss of $4.35. This compares to a loss of $2.65 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 0.69%. A quarter ago, it was expected that this world's largest airline would post a loss of $3.92 per share when it actually produced a loss of $3.86, delivering a surprise of 1.53%.

gray and white airplane on flight near clear blue sky

Image Source: Unsplash

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $4.01 billion for the quarter ended March 2021, missing the Zacks Consensus Estimate by 0.57%. This compares to year-ago revenues of $8.52 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

American Airlines shares have added about 29.2% since the beginning of the year versus the S&P 500's gain of 10.1%.

What's Next for American Airlines?

While American Airlines has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

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