Earnings Preview: US Airways Group
Tuesday November 8, 4:44 pm ET
NEW YORK (AP) -- US Airways Group Inc. is scheduled to report third-quarter results on Wednesday, Nov. 9. The following is a summary of key developments and analyst opinion related to the period.
EXPECTATIONS: In a Thomson Financial poll, Wall Street analysts are predicting quarterly losses of $1.85 on $2.25 billion in sales.
ANALYST TAKE: After its acquisition by America West Holdings Corp., the company -- which retained the US Airways name -- raised $330 million in proceeds from debt and equity offers and "moved quickly to use some of that cash to clean up its balance sheet," said Merrill Lynch analyst Michael J. Linenberg. He said the combined company is "off to a good start" with September revenue gains of 10 percent at both carriers.
QUARTER DEVELOPMENTS: The Tempe, Ariz.-based company final approval Sept. 16 to exit bankruptcy protection for the second time in three years and be acquired by America West. The companies combined on Sept. 27. US Airways said traffic in October -- the first full month for the merged company -- fell 8.2 percent at its US Airways, US Airways Express and America West airlines.
COMPETITORS: Delta Air Lines Inc. and Northwest Airlines Corp. filed for bankruptcy in mid-September. American Airlines parent company AMR Corp. reported a slimmer quarterly loss as cost cuts helped counter soaring fuel prices, but the results lagged analysts' forecasts. Meanwhile, Continental Airlines Inc. posted a healthy and higher-than-expected quarterly profit, lifted in part by lower labor costs.
STOCK PERFORMANCE: Since exiting bankruptcy in September, the stock has traded between $20.10 and $29.
Tuesday November 8, 4:44 pm ET
NEW YORK (AP) -- US Airways Group Inc. is scheduled to report third-quarter results on Wednesday, Nov. 9. The following is a summary of key developments and analyst opinion related to the period.
EXPECTATIONS: In a Thomson Financial poll, Wall Street analysts are predicting quarterly losses of $1.85 on $2.25 billion in sales.
ANALYST TAKE: After its acquisition by America West Holdings Corp., the company -- which retained the US Airways name -- raised $330 million in proceeds from debt and equity offers and "moved quickly to use some of that cash to clean up its balance sheet," said Merrill Lynch analyst Michael J. Linenberg. He said the combined company is "off to a good start" with September revenue gains of 10 percent at both carriers.
QUARTER DEVELOPMENTS: The Tempe, Ariz.-based company final approval Sept. 16 to exit bankruptcy protection for the second time in three years and be acquired by America West. The companies combined on Sept. 27. US Airways said traffic in October -- the first full month for the merged company -- fell 8.2 percent at its US Airways, US Airways Express and America West airlines.
COMPETITORS: Delta Air Lines Inc. and Northwest Airlines Corp. filed for bankruptcy in mid-September. American Airlines parent company AMR Corp. reported a slimmer quarterly loss as cost cuts helped counter soaring fuel prices, but the results lagged analysts' forecasts. Meanwhile, Continental Airlines Inc. posted a healthy and higher-than-expected quarterly profit, lifted in part by lower labor costs.
STOCK PERFORMANCE: Since exiting bankruptcy in September, the stock has traded between $20.10 and $29.
