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Copa (CPA) to Report Q3 Earnings: What's in the Offing?

Copa Holdings SA CPA is scheduled to report third-quarter 2020 earnings numbers on Nov 18, after market close.

The company has an impressive earnings history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 12%. Let’s see whether the company is able to retain its beat streak in the impending quarterly results.

Factors to Note

Coronavirus-led travel restrictions for most of the third quarter are expected to have weighed significantly on the carrier’s passenger revenues (accounting for majority of the top line). The Zacks Consensus Estimate for third-quarter passenger revenues indicates a decline of 96.3% from the year-ago reported figure.

Due to travel restrictions, the carrier operated a limited capacity in the third quarter. The Zacks Consensus Estimate for third-quarter capacity suggests a 97.3% drop from third-quarter 2019’s reported level.

However, reduced expenses on fuel and cost-cutting measures are expected to have aided the company’s bottom line in the third quarter. The Zacks Consensus Estimate for fuel costs per gallon hints at a 32.4% fall from the year-ago quarter’s reported figure.

Copa Holdings, S.A. Price and EPS Surprise

Copa Holdings, S.A. price-eps-surprise | Copa Holdings, S.A. Quote

Earnings Whispers

The proven Zacks model does not conclusively predict a beat for Copa Holdings this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. However, that is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Copa Holdings has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of $2.79.

Zacks Rank: Copa Holdings carries a Zacks Rank #4 (Sell).

Highlights of Q2 Earnings

In the last reported quarter, Copa Holdings delivered a surprise of 20.1% with narrower thanexpected loss. Quarterly revenues beat estimates but plunged 97.7% year over year with passenger revenues declining 98.3%. Results were hurt by coronavirus-led air-travel restrictions.

A Stock to Consider

Investors interested in the broader Transportation sector may check out Golar LNG Limited GLNG as it possesses the perfect combination of elements to beat estimates this earnings season.

Golar LNG has an Earnings ESP of +2.10% and a Zacks Rank #3.

Snapshots of Sectorial Releases

Investors may also want to recapitulate the third-quarter results of a few companies, earnings of which surpassed estimates. Below we present the performance releases of two such sectorial players.

United Parcel Service’s UPS third-quarter 2020 earnings (excluding 4 cents from non-recurring items) per share of $2.28 surpassed the Zacks Consensus Estimate of $1.86. The bottom line also improved 10.1% year over year. UPS, currently carrying a Zacks Rank #2, generated revenues worth $21,238 million in the quarter, outpacing the Zacks Consensus Estimate of $20,079.6 million. You can see the complete list of today’s Zacks #1 Rank stocks here.

Old Dominion Freight Line’s ODFL third-quarter 2020 earnings per share of $1.71 outpaced the Zacks Consensus Estimate of $1.51. Moreover, the bottom line improved 24.8% year over year. This upside was driven by a record improvement in the operating ratio (operating expenses as a percentage of revenues) on the back of the company’s cost-containment efforts. Revenues of $1058.2 million  surpassed the Zacks Consensus Estimate marginally. The stock carries a Zacks Rank of 3 currently.

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United Parcel Service, Inc. (UPS): Free Stock Analysis Report
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