Air Canada shares hit 10-year high on bullish Q2 outlook
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Air Canada shares hit 10-year high on bullish Q2 outlook
Good Evening All:
Very good news for our friends at Big Red and almost one million passengers over July 01st weekend as well..........
https://www.theglobeandmail.com/repo...ticle35572847/
Ross Marowits
MONTREAL — The Canadian Press
Published Thursday, Jul. 06, 2017 10:51AM EDT
Last updated Thursday, Jul. 06, 2017 11:27AM EDT
Air Canada shares were at their highest in more than 10 years on Thursday after the country’s largest airline said analyst forecasts had significantly underestimated one of its earnings benchmarks.
Shares in the Montreal-based airline peaked at $19.06 in morning trading on the Toronto Stock Exchange. In later trading, they were up 7.38 per cent or $1.28 at $18.62.
The last time Air Canada shares were at these levels was in February 2007.
The shares surged after Air Canada said its EBITDAR (earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent) will be better than $475-million average forecast by analysts for the three months ended June 30.
In last year’s second quarter, Air Canada posted a record $605-million in EBITDAR and $186-million of net income, which includes many items required under general accounting.
Chief executive Calin Rovinescu says the results for this year’s second quarter, to be announced Aug. 4, were driven by higher revenue and lower than projected fuel costs.
.
In a news release that the quarter was capped by transporting nearly one million customers over the six-day Canada Day-Fourth of July period, including a single-day record of 166,850 passengers on June 29.
Walter Spracklin of RBC Capital Markets said the guidance reaffirmed his “bullish view” of the company.
He raised his target price for Air Canada to $25 from $21, saying the shares are undervalued.
Air Canada was expected to earn $19.5-million of net income in the second quarter on revenues of nearly $3.8-billion, according to analysts polled by Thomson Reuters.
Adjusted profits were forecast to be $45.7-million or 19 cents per share, down from $203-million or 72 cents per share a year ago.
Very good news for our friends at Big Red and almost one million passengers over July 01st weekend as well..........
https://www.theglobeandmail.com/repo...ticle35572847/
Ross Marowits
MONTREAL — The Canadian Press
Published Thursday, Jul. 06, 2017 10:51AM EDT
Last updated Thursday, Jul. 06, 2017 11:27AM EDT
Air Canada shares were at their highest in more than 10 years on Thursday after the country’s largest airline said analyst forecasts had significantly underestimated one of its earnings benchmarks.
Shares in the Montreal-based airline peaked at $19.06 in morning trading on the Toronto Stock Exchange. In later trading, they were up 7.38 per cent or $1.28 at $18.62.
The last time Air Canada shares were at these levels was in February 2007.
The shares surged after Air Canada said its EBITDAR (earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent) will be better than $475-million average forecast by analysts for the three months ended June 30.
In last year’s second quarter, Air Canada posted a record $605-million in EBITDAR and $186-million of net income, which includes many items required under general accounting.
Chief executive Calin Rovinescu says the results for this year’s second quarter, to be announced Aug. 4, were driven by higher revenue and lower than projected fuel costs.
.
In a news release that the quarter was capped by transporting nearly one million customers over the six-day Canada Day-Fourth of July period, including a single-day record of 166,850 passengers on June 29.
Walter Spracklin of RBC Capital Markets said the guidance reaffirmed his “bullish view” of the company.
He raised his target price for Air Canada to $25 from $21, saying the shares are undervalued.
Air Canada was expected to earn $19.5-million of net income in the second quarter on revenues of nearly $3.8-billion, according to analysts polled by Thomson Reuters.
Adjusted profits were forecast to be $45.7-million or 19 cents per share, down from $203-million or 72 cents per share a year ago.
