Several prominent companies are set to report their earnings before the market opens tomorrow. Among them is Procter & Gamble (PG), which has a consensus earnings expectation of $1.53 per share.
Other major companies preparing to disclose their financial results include Merck (MRK), expected to report earnings of $2.14 per share, and PepsiCo (PEP), with an anticipated $1.49 per share. Union Pacific (UNP) is projected to announce earnings of $2.74 per share, while Comcast (CMCSK) (CMCSA) is forecasted at 99 cents per share.
Fiserv (FI) is expected to present earnings of $2.07 per share. Meanwhile, Bristol-Myers Squibb (BMY) has a consensus forecast of $1.50 per share. Other companies reporting include Keurig Dr Pepper (KDP) with an expected 38 cents per share, L3Harris Technologies (LHX) with $2.32, and Tractor Supply (TSCO) with 37 cents per share.
The airline sector also makes an appearance with Southwest Airlines (LUV), projected to report a loss of 19 cents per share, and American Airlines (AAL, Financial), with an expected 67 cents per share. Textron (TXT) is anticipated to announce earnings of $1.14 per share, while Mobileye (MBLY) is forecasted at 8 cents per share. Rounding out the list is Hasbro (HAS), with a consensus estimate of 67 cents per share.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for American Airlines Group Inc (AAL, Financial) is $14.66 with a high estimate of $24.00 and a low estimate of $8.00. The average target implies an upside of 55.87% from the current price of $9.41. More detailed estimate data can be found on the American Airlines Group Inc (AAL) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, American Airlines Group Inc's (AAL, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for American Airlines Group Inc (AAL, Financial) in one year is $12.37, suggesting a upside of 31.53% from the current price of $9.405. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the American Airlines Group Inc (AAL) Summary page.
Key Business Developments
Release Date: January 23, 2025
- Adjusted Pretax Profit (Q4 2024): $808 million
- Adjusted Earnings Per Diluted Share (Q4 2024): $0.86
- Adjusted Pretax Profit (Full Year 2024): $1.8 billion
- Adjusted Earnings Per Diluted Share (Full Year 2024): $1.96
- Record Free Cash Flow (2024): $2.2 billion
- Total Revenue (Q4 2024): $13.7 billion, up 4.6% year-over-year
- Unit Revenue (Q4 2024): Up 2% year-over-year
- Adjusted EBITDA Margin (Q4 2024): 14.9%
- Adjusted Operating Margin (Q4 2024): 8.4%
- Total Debt Reduction (End of 2024): More than $15 billion from peak levels in mid-2021
- Total Available Liquidity (End of 2024): $10.3 billion
- Total Debt (End of 2024): $38.6 billion
- Net Debt (End of 2024): $31.6 billion
- Cash from Co-branded Credit Cards and Other Partners (2024): $6.1 billion, up 17% versus 2023
- Aircraft CapEx (2024): $1.9 billion
- Total CapEx (2024): $2.7 billion
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- American Airlines Group Inc (AAL, Financial) reported a fourth quarter adjusted pretax profit of $808 million, exceeding guidance expectations.
- The company achieved a record free cash flow of $2.2 billion in 2024, and reduced total debt by more than $15 billion from peak levels in mid-2021.
- A new 10-year agreement with Citi was announced, expected to drive substantial incremental value through the AAdvantage co-branded credit card portfolio.
- American Airlines Group Inc (AAL) delivered nearly $500 million of value through reengineering initiatives, surpassing expectations by $100 million.
- The company reported strong passenger revenue growth, with premium revenue increasing approximately 8% year-over-year and loyalty revenues up 14% year-over-year.
Negative Points
- Fourth quarter unit costs, excluding fuel and net special items, increased by 5.7% year-over-year.
- The company expects a first quarter loss of approximately $0.20 to $0.40 per diluted share in 2025.
- Latin unit revenue was down on a year-over-year basis, although improvement is expected in the first quarter.
- First quarter nonfuel unit costs are projected to rise by high single digits year-over-year, driven by reduced capacity and new labor agreements.
- Despite achieving debt reduction goals, the company still faces a significant total debt of $38.6 billion.
