Airline major American Airlines (NASDAQ:AAL) rose in pre-market trading after the company reported better-than-expected Q4 results. The airline generated Q4 revenues of $13.1 billion, a decline of 1% year-over-year and slightly above consensus estimates of $13 billion.
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The company reported adjusted earnings of $0.29 per diluted share in the fourth quarter as compared to earnings of $1.17 per diluted share in the same period last year. This exceeded Street estimates of $0.11 per share.
Moreover, AAL slashed its total debt in FY23 by $3.2 billion, reducing it by more than 75% so far.
Looking forward, AAL expects its first-quarter adjusted loss to be between $0.15 and $0.35 per share. For FY24, AAL has projected adjusted earnings to be in the range of $2.25 to $3.25 per diluted share, exceeding consensus estimates of $2.14 per share.
Is American Airlines Stock a Buy or Sell?
Analysts remain sidelined about AAL stock with a Hold consensus rating based on four Buys, three Holds, and two Sells. AAL stock has declined by more than 10% over the past year, and the average AAL price target of $15.11 implies an upside potential of 8.5% at current levels.
