American Airlines Groups (AAL) adjusted quarterly earnings, reported on Thursday, came in line with market expectations. However, unadjusted earnings were sharply lower compared to a year ago, as rising fuel costs and the impact from Hurricane Florence in September weighed.
American Airlines shares closed higher for the sixth time in the past nine trading sessions on NASDAQ on Thursday. It has also been the sharpest daily surge since July 12th 2016. The stock went up 6.69% ($2.03) to $32.37, after touching an intraday high at $33.33, or a price level not seen since October 18th ($33.76).
Shares of American Airlines Group have retreated 37.79% so far in 2018 compared with a 1.20% gain for the benchmark index, S&P 500 (SPX).
In 2017, American Airlines’ stock rose 11.44%, thus, it again underperformed the S&P 500, which registered a 19.42% return.
American Airlines operating revenue went up 3.7% to $11.64 billion during the quarter ended on September 30th.
The companys unit revenue, which reflects the relation between sales and flight capacity, was reported to have surged 2.6% year-on-year during the third quarter. The air carrier said it now projected a 1.5% to 3.5% growth in its unit revenue during the fourth quarter.
The company registered a 42% surge in fuel costs during the latest quarter from a year earlier, while Hurricane Florence, which struck North and South Carolina last month affecting a number of businesses, forced the airline to cancel almost 2 100 flights.
Meanwhile, the companys net income shrank to $341 million ($0.74 per share) during the quarter ended on September 30th, which compares with a profit of $661 million ($1.36 per share) in the year-ago period.
Additionally, earnings per share, excluding special items, were reported at $1.13 during the latest quarter, in unison with Wall Street estimates.
American Airlines maintained its full-year 2018 earnings forecast of $4.50 to $5.00 per share.
According to CNN Money, the 17 analysts, offering 12-month forecasts regarding American Airlines Group’s stock price, have a median target of $47.00, with a high estimate of $70.00 and a low estimate of $37.00. The median estimate represents a 45.20% upside compared to the closing price of $32.37 on October 25th.
The same media also reported that 10 out of 18 surveyed investment analysts had rated American Airlines Group’s stock as “Buy”, while 4 – as “Hold”.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for American Airlines Group (AAL) are presented as follows:
Central Pivot Point – $32.75
R1 – $34.69
R2 – $37.33
R3 – $39.27
R4 – $41.20
S1 – $30.11
S2 – $28.17
S3 – $25.53
S4 – $22.88
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