Air Canada (AC) is expected to see improved earnings in the second quarter of 2024, according to predictions by Cormark, a research firm. Analyst D. Ocampo from Cormark raised the company’s earnings per share (EPS) estimate for the quarter to $0.75, up from the previous forecast of $0.66. This positive outlook reflects a potential increase in profitability for Air Canada.
The consensus estimate for Air Canada’s full-year earnings stands at $0.38 per share. Cormark also provided estimates for the company’s earnings in the third quarter of 2024, projecting an EPS of $1.97, and for the fiscal year 2025, with an estimated EPS of $3.50.
In its last quarterly earnings report released on February 17th, Air Canada reported an EPS of ($0.61) for the quarter, falling short of the consensus estimate of ($0.20) by ($0.41). However, the company generated revenue of C$4.68 billion during the quarter, surpassing analysts’ expectations of C$4.43 billion.
Air Canada Stock performance
Various reports have recently focused on Air Canada performance. ATB Capital, for instance, raised the target price for Air Canada shares from $31.00 to $38.00 in a research report on May 5th. Conversely, Raymond James reduced the target price from $25.00 to $23.00 in a report on February 22nd. TD Securities also decreased their target price from $28.00 to $26.00 but maintained a “buy” rating for the stock in a report on February 21st. On the other hand, BMO Capital Markets raised the target price from $29.00 to $33.00, and CIBC increased it from $30.00 to $31.00, both in reports on May 5th. Overall, the stock has received positive ratings, with eight analysts giving a buy rating, two analysts giving a hold rating, and one analyst giving a sell rating. The average rating from STA Research is “Buy,” with an average price target of $27.15.
As of Wednesday’s opening, Air Canada stock was valued at $21.60. The stock has a 50-day moving average price of $19.18 and a 200-day moving average price of $19.87. With a market capitalization of $7.74 billion, the company has a PE ratio of -4.76 and a price-to-earnings-growth ratio of 0.02. Air Canada’s beta is 2.42, indicating higher volatility compared to the market. The company has a significantly high debt-to-equity ratio of 183,588.89 but maintains adequate liquidity with a quick ratio of 1.06 and a current ratio of 1.03. Over the past year, Air Canada’s stock has traded between a low of $15.57 and a high of $23.54.
AC Stock Analysis & Forecast
According to the predictions of 15 analysts, Air Canada is expected to reach an average price of CAD 27.15 in the next 12 months. The overall opinion of these analysts is that it is advisable to buy Air Canada’s stock. Stock Target Advisor, after conducting its own analysis, also holds a positive outlook on Air Canada, with 13 indicators pointing towards a favorable market, while only 3 indicators are negative. As of the latest closing, Air Canada’s stock was valued at CAD 22.32. Over the past week, the stock has experienced a positive change of +6.34%, a growth of +17.72% over the past month, and a modest increase of +3.14% over the past year.
These predictions and the positive analyst outlook suggest that Air Canada may experience improved financial performance in the second quarter of 2024. Investors will be closely monitoring the company’s progress to assess its potential for growth in the coming months.
