Hawaiian Holdings (HA) Down 6.1% Since Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Hawaiian Holdings, Inc. HA. Shares have lost about 6.1% in that time frame, underperforming the market.

Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Third Quarter Earnings

Hawaiian Holdings’ third-quarter adjusted earnings of $1.92 per share beat the Zacks Consensus Estimate of $1.85. Quarterly revenues of $719.6 million, however, fell short of the Zacks Consensus Estimate of $720.6 million. While earnings per share were flat, revenues increased on a year-over-year basis.

Operating revenue per available seat mile in the quarter climbed 5.8% year over year. However, the metric is projected to be down 1% to up 2% on a year-over-year basis in the fourth quarter of 2017. For full-year 2017, the same is forecasted to grow in the band of 5% to 6%.

Capacity is projected to grow between 4% and 6% in the final quarter of 2017. CASM, excluding fuel, is also projected to rise significantly for the ongoing quarter primarily due to the higher labor costs. Fuel cost per gallon (economic) is anticipated in the band of $1.75-$1.85 for the fourth quarter. The metric is expected in the band of $1.65 to $1.75 for full-year 2017.

How Have Estimates Been Moving Since Then?

Following the release, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter.

Hawaiian Holdings, Inc. Price and Consensus

 

Hawaiian Holdings, Inc. Price and Consensus | Hawaiian Holdings, Inc. Quote

VGM Scores

At this time, Hawaiian Holdings' stock has a nice Growth Score of B,  a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Based on our scores, the stock is primarily suitable for value investors while also being suitable for those looking for growth and momentum.

Outlook

Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.

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