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April 26, 2019, 7:50 a.m. EDT

American Airlines' stock sinks after profit beat expectations, but guidance was lowered

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By Tomi Kilgore

Shares of American Airlines Group Inc. /zigman2/quotes/209207041/composite AAL -10.34% sank 3.2% in premarket trade Friday, after the air carrier reported first-quarter earnings and load factor that beat expectations, but lowered its full-year profit outlook. Regarding the grounding of its 737 MAX fleet, made by Boeing Co. /zigman2/quotes/208579720/composite BA -10.27% , the company said it expects a $350 million negative impact on 2019 earnings, assuming the flight cancellations extend through Aug. 19. For the latest quarter, net income rose to $185 million, or 41 cents a share, from $159 million, or 34 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted EPS was 52 cents, above the FactSet consensus of 50 cents. Total revenue rose 1.8% to $10.58 billion, in line with the FactSet consensus of $10.60 billion. Load factor increased to 82.2% from 80.4%, beating expectations of 80.5%, as traffic growth of 3.5% outpaced capacity growth of 1.3%. Total revenue per available seat mile (TRASM) rose 0.5% to 15.87 cents. American cut its 2019 adjusted EPS guidance range to $4.00 to $6.00 from $5.50 to $7.50. The stock has gained 4.1% year to date through Thursday, while the NYSE Arca Airline Index /zigman2/quotes/210598447/delayed XX:XAL -8.34% has rallied 11.7% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -3.37% has climbed 16.7%.

/zigman2/quotes/209207041/composite
US : U.S.: Nasdaq
$ 14.04
-1.62 -10.34%
Volume: 50.78M
March 27, 2020 4:00p
P/E Ratio
3.68
Dividend Yield
2.85%
Market Cap
$5.98 billion
Rev. per Employee
$345,547
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/zigman2/quotes/208579720/composite
US : U.S.: NYSE
$ 162.00
-18.55 -10.27%
Volume: 47.88M
March 27, 2020 6:30p
P/E Ratio
N/A
Dividend Yield
5.07%
Market Cap
$91.40 billion
Rev. per Employee
$660,961
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/zigman2/quotes/210598447/delayed
XX : ICE Gib Ind
48.08
-4.37 -8.34%
Volume: 0.00
March 27, 2020 6:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
2,541.47
-88.60 -3.37%
Volume: 3.59B
March 27, 2020 5:12p
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