Alaska Air Group (ALK) got here out with quarterly earnings of $1.05 per share, lacking the Zacks Consensus Estimate of $1.11 per share. This compares to earnings of $2.25 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of -5.41%. 1 / 4 in the past, it was anticipated that this airline would submit earnings of $1.56 per share when it truly produced earnings of $1.78, delivering a shock of +14.1%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates two occasions.
Alaska Air, which belongs to the Zacks Transportation – Airline business, posted revenues of $3.77 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.32%. This compares to year-ago revenues of $3.07 billion. The corporate has topped consensus income estimates 3 times during the last 4 quarters.
The sustainability of the inventory’s instant value motion based mostly on the recently-released numbers and future earnings expectations will principally rely on administration’s commentary on the earnings name.
Alaska Air shares have misplaced about 26.4% for the reason that starting of the yr versus the S&P 500’s achieve of 13.9%.
What’s Subsequent for Alaska Air?
Whereas Alaska Air has underperformed the market to date this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?
There are not any simple solutions to this key query, however one dependable measure that may assist traders deal with that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified currently.
Empirical analysis exhibits a powerful correlation between near-term inventory actions and traits in earnings estimate revisions. Buyers can observe such revisions by themselves or depend on a tried-and-tested ranking software just like the Zacks Rank, which has a formidable observe document of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for Alaska Air was unfavorable. Whereas the magnitude and course of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #5 (Robust Promote) for the inventory. So, the shares are anticipated to underperform the market within the close to future. You may see the whole record of at this time’s Zacks #1 Rank (Robust Purchase) shares right here.
It will likely be fascinating to see how estimates for the approaching quarters and the present fiscal yr change within the days forward. The present consensus EPS estimate is $1.03 on $3.69 billion in revenues for the approaching quarter and $2.95 on $14.28 billion in revenues for the present fiscal yr.
Buyers ought to be conscious of the truth that the outlook for the business can have a cloth affect on the efficiency of the inventory as effectively. By way of the Zacks Trade Rank, Transportation – Airline is at present within the backside 37% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
One other inventory from the identical business, Controladora Vuela (VLRS), has but to report outcomes for the quarter ended September 2025. The outcomes are anticipated to be launched on October 27.
This operator of low-cost airline Volaris is anticipated to submit quarterly lack of $0.04 per share in its upcoming report, which represents a year-over-year change of -112.5%. The consensus EPS estimate for the quarter has remained unchanged during the last 30 days.
Controladora Vuela’s revenues are anticipated to be $785.01 million, down 3.4% from the year-ago quarter.
Ought to You Put money into Alaska Air Group, Inc. (ALK)?
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Zacks Funding Analysis has been dedicated to offering traders with instruments and impartial analysis since 1978. For greater than 1 / 4 century, the Zacks Rank stock-rating system has greater than doubled the S&P 500 with a median achieve of +24.08% per yr. (These returns cowl a interval from January 1, 1988 via Might 6, 2024.)
Alaska Air Group, Inc. (ALK) : Free Inventory Evaluation Report
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