In its latest financial disclosure, the company revealed that for the first quarter, its operating margin stood at a negative 2.2% based on Generally Accepted Accounting Principles (GAAP). When adjusted to exclude net special items, the margin improved slightly but remained negative at 1.6% for the same period.
The figures indicate that the company is facing challenges in achieving profitability, as the negative margins suggest that operating expenses exceeded revenues. The reporting of both GAAP and adjusted margins provides insight into the company’s performance by excluding certain one-time expenses that are not reflective of ongoing operations.
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 57.30% from the current price of $9.32. 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 32.73% from the current price of $9.32. 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.
