Investors in American Airlines have experienced a rollercoaster ride in recent months, and the upcoming earnings report could be a make-or-break moment for the struggling stock.
According to FactSet, Wall Street analysts are anticipating a fourth-quarter profit of 11 cents per share for American Airlines, excluding any net special items. This would be a significant decrease from $1.17 per share reported during the same quarter last year. Additionally, sales are expected to decline from $13.2 billion to $13 billion.
The stock’s performance leading up to the earnings report is noteworthy. After a 42% drop from its July high to its October low, American Airlines shares have rebounded by 28%. Currently trading at $13.96, the stock is hovering between its 200-day moving average resistance of $14.20 and its 50-day moving average support of $13.38. The forthcoming results will likely determine the stock’s trajectory.
One analyst, Scott Group from Wolfe Research, remains optimistic about American Airlines’ prospects. He recently upgraded the stock to Outperform from Peer Perform, citing the carrier as the only airline to meet its capacity guidance for 2023. Group also believes that American Airlines faces lower earnings per share risk compared to its competitors and suggests that first-quarter earnings might surpass expectations.
However, the focus remains on the fourth-quarter performance for now.