American Airlines (AAL) is set to release its Q4 results on January 23. Shares of this air carrier have rallied more than 37% over the past year, fueled by robust air travel demand, analyst upgrades, strong execution, and upbeat Q3 results. Wall Street analysts expect the company to report earnings of $0.66 per share for Q4, up 127% year-over-year.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
Meanwhile, revenues are expected to increase by 3% year-over-year, reaching $13.43 billion for the quarter. It is interesting to note that American Airlineshas exceeded analysts’ earnings expectations for eight out of nine consecutive quarters.
Analysts’ Views on AAL Ahead of Q4 Results
Ahead of the company’s Q4 results, several analysts maintained their ratings on the stock, with many raising their price targets.
Recently, Evercore ISI analyst Duane Pfennigwerth increased the price target for AAL stock to $18 from $13 and reaffirmed a Hold recommendation. The analyst expects strong Q4 results, driven by a stronger-than-expected post-election demand pick up. He also believes that the period between Thanksgiving and the peak holiday season and corporate travel towards the end of the year also likely contributed to robust results.
Similarly, analyst Sheila Kahyaoglu from Jefferies expects American Airlines to report strong results in the upcoming Q4 quarter. She upgraded the rating on the stock to a Buy and gave it a $20.00 price target. Kahyaoglu contends that with disciplined capacity management and a strong network, American Airlines is well-positioned for revenue growth, outperforming competitors.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 7.78% move in either direction.
Is AAL a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on UAL stock based on nine Buys and four Holds assigned in the past three months, as indicated by the graphic below. The average AAL price target of $21.50 per share implies 15.34% upnside potential.
