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AZUL Set to Report Q3 Earnings: What's in the Offing for the Stock?

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AZUL  is scheduled to report third-quarter 2024 results on Nov. 14, before market open.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

AZUL has a discouraging earnings surprise history, having missed the Zacks Consensus Estimate in each of the trailing four quarters. The average miss is 62.86%.

AZUL Price and EPS Surprise

AZUL Price and EPS Surprise

AZUL price-eps-surprise | AZUL Quote

The Zacks Consensus Estimate of a loss in the soon-to-be-reported quarter is currently pegged at 14 cents per share, compared with a loss of 4 cents 30 days ago. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $963 million, which indicates a fall of 4.4% year over year.

High operating expenses are likely to have hurt the bottom-line performance in the to-be-reported quarter. Per our estimate, the total operating expenses are expected to increase 3.3% year over year. High labor and fuel costs are likely to have led to an uptick in operating costs. Low liquidity is also likely to hurt results.

On the contrary, the upbeat air travel demand is expected to have contributed to the company’s prospects in the September-end quarter.

What Our Model Says About AZUL

Our proven model does not conclusively predict an earnings beat for AZUL this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

AZUL has an Earnings ESP of -298.55% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Highlights of AZUL's Q2 Results

Azul incurred a loss of $1.23 per share in the second quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 76 cents. Loss per share was 81 cents in the second quarter of 2023.

Total revenues of $800.7 million outpaced the Zacks Consensus Estimate of $791.4 million but declined year over year. The year-over-year downfall is owing to the impact of the Rio Grande do Sul floods in May and the temporary reduction in the company’s international capacity.

A Stock to Consider

Here is a stock from the broader Zacks Transportation sector that investors might want to consider, as our model shows that this stock has the right combination of elements to beat third-quarter 2024 earnings.

ZIM Integrated Shipping Services (ZIM - Free Report) has an Earnings ESP of +29.24% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to report third-quarter 2024 earnings on Nov. 20.

ZIM has a discouraging earnings surprise history, having surpassed the Zacks Consensus Estimate twice in the preceding four quarters and missing twice. The average miss is 0.3%.

Q3 Performances of Other Transportation Companies

Delta Air Lines (DAL - Free Report) reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis due to high labor costs.

Revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year. This included the $380 million impact of the outage caused by CrowdStrike.

Norfolk Southern Corporation’s (NSC - Free Report) third-quarter 2024 earnings (excluding $1.6 from non-recurring items) of $3.25 per share beat the Zacks Consensus Estimate of $3.10 and increased 22.6% year over year due to lower costs.

Railway operating revenues were $3.05 billion in the quarter under review, lagging the Zacks Consensus Estimate of $3.09 billion. However, the top line increased 2.7% year over year, with the Merchandise and Intermodal segments registering an improvement in revenues.


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