Air Transport Services (ATSG) Q4 Earnings Match Estimates

This story originally appeared on Zacks

Air Transport Services (ATSG) posted quarterly earnings of $0.52 per share, in line with Zacks’ consensus estimate. That compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items.

– Zacks

A quarter ago, this air cargo company was expected to post a profit of $0.46 per share when it actually produced a profit of $0.60, delivering a surprise 30.43 %.

In the past four quarters, the company has exceeded consensus EPS estimates twice.

Air transport services, which is part of the Zacks Transportation – Air Cargo and Freight industry, reported revenue of $482.37 million for the quarter ended December 2021, beating Zacks’ consensus estimate of 8.12%. That compares to revenues of $399.36 million a year ago. The company has exceeded consensus revenue estimates three times in the past four quarters.

The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.

Airline services stocks have lost about 6% year-to-date against a -11.3% drop for the S&P 500.

What’s next for air transport services?

With airline services outperforming the market so far this year, the question on investors’ minds is: what’s next for the stock?

There is no easy answer to this key question, but a reliable measure that can help investors answer it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed recently.

Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Prior to this publication of the results, the trend of revisions to estimates for air transport services: mixed. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation translates into a No. 3 (hold) Zacks ranking for the stock. Thus, the shares should move in line with the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.39 on $445.6 million in revenue for the upcoming quarter and $1.86 on $1.86 billion in revenue for the current fiscal year.

Investors should be aware that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks industry rankings, Transportation – Air Freight and Freight is currently in the top 40% of Zacks 250+ industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.

Another stock in the same sector, FedEx (FDX), has yet to report its results for the quarter ending February 2022. The results are expected to be released on March 17.

This parcel delivery company is expected to post quarterly earnings of $4.74 per share in its upcoming report, representing a year-over-year change of +36.6%. The consensus EPS estimate for the quarter remained unchanged for the past 30 days.

FedEx revenue is expected to be $23.61 billion, up 9.7% from the year-ago quarter.

Zacks names ‘only one best choice for doubling up’

From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.

It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could jump in at any moment.

This company could rival or surpass other recent Zacks stocks which are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.

Free: See our best stock and our 4 finalists >>

Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report

Air Transport Services Group, Inc (ATSG): Free Inventory Analysis Report

FedEx Corporation (FDX): Free Inventory Analysis Report

To read this article on Zacks.com, click here.

Zacks Investment Research

Comments are closed.