Gol Linhas (GOL) Stock Up 17.1% Since Q3 Earnings Release

Gol Linhas Aereas Inteligentes S.A. GOL stock has gained 17.1% since its third-quarter 2022 earnings release on Oct 27. The company incurred a loss of 75 cents per share in the third quarter of 2022, wider than the Zacks Consensus Estimate of a loss of 29 cents. In the year-ago quarter, Gol had incurred a loss of 85 cents per share.

Net operating revenues of $765.5 million lagged the Zacks Consensus Estimate of $786.1 million. With people again taking to the skies, the top line surged in excess of 100% year over year in the third quarter.

Revenues from passenger transportation, accounting for 93.7% of total revenues, surged 112.7%, thanks to continued recovery in air-travel demand in Brazil. Cargo and other revenues jumped 69.3%.

Gol Linhas transported 6.9 million passengers in the third quarter, up 39.2% from the year-ago number.

Gol Linhas Aereas Inteligentes S.A. Price, Consensus and EPS Surprise

Gol Linhas Aereas Inteligentes S.A. Price, Consensus and EPS Surprise

Gol Linhas Aereas Inteligentes S.A. price-consensus-eps-surprise-chart | Gol Linhas Aereas Inteligentes S.A. Quote

Consolidated revenue passenger kilometers (RPK), the measure for revenues generated per kilometer per passenger, increased 40.9% from the third quarter of 2021. Consolidated available seat kilometers (ASK), which measure an airline's passenger-carrying capacity, also rose 41.3% year over year with expanded domestic capacity.

Gol Linhas’ total load factor (percentage of seats filled with passengers) was 81.3% in the reported quarter. The net yield climbed 50.9% year over year.

Net passenger revenues per ASK ascended 50.6%, while net revenues per ASK jumped 48.2%. The average fuel price per liter surged 91.3%. Cost per ASK grew 5.5% year over year. Excluding fuel, the metric declined 22.6%.

Total operating expenses increased 48.8% year over year, primarily due to a significant increase in fuel costs.

Gol Linhas exited the third quarter with total liquidity (cash and cash equivalents, cash investments, restricted cash, accounts receivable, and securities and receivables) of R$3.7 billion compared with R$4 billion at the end of prior quarter. During the third quarter, operating activities generated cash of R$0.5 billion compared with R$1.6 billion at the end of prior quarter.

At the reported-quarter end, Gol Linhas’ fleet comprised 145 Boeing 737 aircraft (108 NGs and 37 MAXs). The average age of the fleet was 10.3 years.

2022 Outlook

Gol Linhas expects capacity to increase 50-55% (prior view: 55-65%) year over year in 2022. GOL estimates load factor to be 80% in the current year. The fuel price per liter is predicted to be R$5.9 (prior view: R$5.7) in the current year. EBITDA margin is anticipated to be 19% (prior view: 20%), while EBIT margin is forecasted to be 7% (prior view: 8%). Net capital investments are predicted to be R$650 million (prior view: R$700 million).

Total net revenues are still expected to be R$15.4 billion in the current year. The pre-tax margin is still estimated to be 0% in the year.

Currently, Gol Linhas carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Transportation Companies

Delta AirLines’DAL third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.

DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by the high air-travel demand, total revenues increased more than 52% on a year-over-year basis.

United Airlines’ UAL third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. An upbeat in air-travel demand aided results.

In the year-ago quarter, UAL incurred a loss of $1.02 per share when air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable quarter at UAL since the onset of the pandemic.

Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to an upbeat in air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% from third-quarter 2019 (pre-coronavirus) levels.

J.B. Hunt Transport Services, Inc. JBHT reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.JBHT’s quarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.

JBHT’s operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across — Dedicated Contract Services, Intermodal, Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.

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