American Airlines Earnings Preview: Analyst Forecasts Unveiled

American Airlines Earnings Report Overview
American Airlines Group Inc. (NASDAQ: AAL) is preparing to unveil its earnings results for the second quarter. Investors and analysts alike are eager to see how the airline has performed amid current challenges in the aviation sector.
What Analysts Are Expecting
Reports indicate that analysts have set expectations for American Airlines to deliver quarterly earnings of 77 cents per share, a decrease compared to last year's earnings of $1.09 per share. Revenue projections for the upcoming quarter sit at approximately $14.29 billion, slightly lower than the $14.33 billion reported a year prior.
Recent Strategic Partnerships
In line with enhancing its services, American Airlines has further established its long-standing collaboration with Mastercard Inc. (NYSE: MA), solidifying its role as the exclusive payment network for the airline's co-branded AAdvantage credit cards. This partnership is expected to bolster customer satisfaction and loyalty.
Market Performance and Stock Analysis
On the day before the earnings announcement, American Airlines saw a modest increase in its stock price, closing at $12.68—up 1.4%. This increase reflects a degree of optimism among investors ahead of the earnings report.
Analysts' Ratings and Predictions
- Barclays analyst Brandon Oglenski has retained an Equal-Weight rating, recently adjusting the price target upward from $11 to $12.
- UBS analyst Thomas Wadewitz has also maintained a Neutral rating while raising the price target from $9 to $12.
- Raymond James analyst Savanthi Syth has kept an Outperform rating but has slightly reduced the price target from $15 to $14.
- Christopher Stathoulopoulos, an analyst at Susquehanna, maintained a Neutral rating and has reduced the price target significantly from $18 to $10.
- Jefferies analyst Sheila Kahyaoglu has downgraded the stock from Buy to Hold and revised the price target from $20 to $12.
Evaluating AAL stock: What Do Analysts Think?
Considering purchasing AAL stock? The market sentiment among analysts provides valuable insights that can guide investor decisions regarding American Airlines.
Frequently Asked Questions
1. What is the expected earnings per share for American Airlines?
Analysts expect American Airlines to report earnings of approximately 77 cents per share for the upcoming quarter.
2. How does this quarter’s expected revenue compare to the previous year?
The expected revenue for the upcoming quarter is $14.29 billion, down from $14.33 billion reported in the previous year.
3. What is the significance of the partnership with Mastercard?
This partnership enhances customer loyalty through the co-branded AAdvantage credit cards, offering more benefits to customers.
4. How has the stock price of American Airlines reacted recently?
American Airlines shares recently saw a 1.4% increase, closing at $12.68 ahead of the earnings announcement.
5. What are analysts’ new price targets for AAL stock?
Analysts have adjusted their price targets, with Barclays raising it to $12 and Jefferies reducing it to $12 after a downgrade.
About The Author
Contact Evelyn Baker privately here. Or send an email with ATTN: Evelyn Baker as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.