Hawaiian Holdings Inc. (Nasdaq: HA) – Q3 FY 2011 Earnings Preview
By:NewsyStocks   Thursday, October 13, 2021 11:21 AM

Hawaiian Holdings Inc. (Nasdaq: HA) is scheduled to report third quarter FY 2011 financial results on October 18, 2011, after the closing bell. In the last four quarters, the company's reported EPS exceeded Wall Street's consensus estimate by margins in the range of 13.90 percent to 16.70 percent.

Despite beating the analysts' estimates in the last four quarters, the company's stock prices dropped on the days it reported its quarterly results. The stock prices were off by an average of 8 percent after it reported results.

The company is focusing on expanding its reach in Asia with a total of two destinations currently operational in Asia and a third added recently, which will be operational by April 2012. According to the company, Asian countries will enhance Hawaiian's ability to attract customers from other regions of the Asian continent, as well as other cities in southern Japan via high-speed rail transportation.

For investors, the airline sector does not seem like a hot pick in the current economic climate. There are rising fuel costs, labor unions, and capital expenditures to worry about. In the last 52-weeks, the stock has lost 30 percent in value from $6.35 per share on October 12, 2010, to its last trading price of $4.71 a share.

In the airline industry, the company competes with Delta Airlines Inc. (NYSE: DAL), and United Continental Holdings Inc. (NYSE: UAL). For the trailing 12 months, Hawaiian Holdings reported earnings of $51.86 million, or $1.02 per share, on revenue of $1.46 billion. On the other hand, DAL reported net income of $262 million, or $0.31 per share, on revenue of $33.64 billion, and UAL reported net income of $385 million, or $1.20 per share, on revenue of $31.73 billion.

For the third quarter, analysts expect the company to report higher earnings, compared with what it reported in third quarter FY 2010. On the other hand, investors will be hoping for strong quarterly results based on the traffic reports in the third quarter, which suggested higher passenger rates during the quarter compared with the same quarter last year.