Back to top

Image: Bigstock

Copa Holdings Stock to Report Q2 Earnings: What's in the Cards?

Read MoreHide Full Article

Key Takeaways

  • {\"0\":\"CPA\'s Q2 EPS estimate of $3.25 is down 2.40% in 60 days but still 12.85% above last year\'s actual.\",\"1\":\"Revenue is forecasted to rise 1.88% to $834.81M, supported by demand recovery and lower fuel costs.\",\"2\":\"CPA holds a Zacks Rank #3 and Earnings ESP of -4.70%, not indicating a likely earnings beat.\"}

Copa Holdings, S.A. (CPA - Free Report) is scheduled to report second-quarter 2025 results on Aug. 6, after market close.

Copa Holdings has an encouraging earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.50%.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s see how things have shaped up for Copa Holdings this earnings season.

Factors Likely to Have Influenced CPA’s Q2 Performance

The Zacks Consensus Estimate for CPA’s second-quarter 2025 earnings has been revised downward by 2.40% in the past 60 days to $3.25 per share. However, the consensus mark implies a 12.85% upside from the year-ago actual.

Zacks Investment Research
Image Source: Zacks Investment Research

We expect geopolitical uncertainty, tariff-related pressures, and persistent inflation to weigh on CPA’s operations and weaken travel demand. The ongoing economic uncertainties and the resultant reduction in consumer and corporate confidence are likely to have hurt the domestic air travel demand.

Escalated labor and airport costs are also likely to have been high, which would have hurt the company’s bottom-line performance in the June quarter. Despite costs on aircraft fuel decreasing year over year (down 7% in second-quarter 2025, per our model), CPA expects to continue experiencing increased cost pressure from wages, salaries, benefits and other employee expenses, airport facilities and handling charges. We expect operating costs to increase 1.2% in second-quarter 2025 from second-quarter 2024 actuals, led by the 9.4% rise in wages, salaries, benefits and other employee expenses, and the 11.5% rise in airport facilities and handling charges.

The Zacks Consensus Estimate for CPA’s second-quarter 2025 revenues is pegged at $834.81 million, indicating 1.88% growth year over year. The top line is likely to have been aided by improving travel demand and lower fuel prices.

Notably, the southward movement of oil prices bodes well for the bottom-line growth of industry participants. This is because fuel expenses are a significant input cost for the aviation industry. Crude oil is struggling in 2025, with prices sliding to multi-month lows. Tariff concerns, weakening consumer confidence, and the production increase by OPEC+ have all contributed to this downward pressure. Oil prices decreased 6% in the April-June 2025 period.

What Our Model Says About CPA

Our proven model does not conclusively predict an earnings beat for Copa Holdings this time around. 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Copa Holdings has an Earnings ESP of -4.70% and a Zacks Rank #3 at present.

Copa Holdings, S.A. Price and EPS Surprise

Copa Holdings, S.A. Price and EPS Surprise

Copa Holdings, S.A. price-eps-surprise | Copa Holdings, S.A. Quote

Highlights of CPA’s Q1 Earnings

Copa Holdings' first-quarter 2025 earnings per share of $4.28 surpassed the Zacks Consensus Estimate of $3.77 and improved 2.2% year over year. Revenues of $899.2 million beat the Zacks Consensus Estimate of $889.5 million and inched up 0.6% year over year, due to an 8.7% increase in onboard passengers.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Expeditors International of Washington (EXPD - Free Report) , a leading third-party logistics provider, is based in Seattle, WA. EXPD currently has an Earnings ESP of +0.11% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to report its second-quarter 2025 results on Aug. 5.

While weak volumes (with respect to air-freight tonnage and ocean containers) stemming from soft demand and declining rates are likely to have hurt EXPD’s performance, efforts to cut costs in the face of demand weakness are likely to have driven its bottom line. EXPD beat the Zacks Consensus Estimate in each of the last four quarters, the average being 13.3%.

GXO Logistics (GXO - Free Report) , a pure-play contract logistics provider, is headquartered in Greenwich, CT.  GXO currently has an Earnings ESP of +8.33% and a Zacks Rank of 3. The company is slated to report second-quarter 2025 results on Aug. 5.

Increased e-commerce, automation and outsourcing are likely to aid the company’s results. Cost-cutting efforts are also likely to have boosted the bottom-line performance of GXO. The company beat the Zacks Consensus Estimate in three of the last four quarters, and missed once, with the average beat being 3.9%.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Expeditors International of Washington, Inc. (EXPD) - free report >>

Copa Holdings, S.A. (CPA) - free report >>

GXO Logistics, Inc. (GXO) - free report >>

Published in