FMP
Apr 23, 2024 3:03 PM - Davit Kirakosyan
JetBlue Airways (NASDAQ:JBLU) shares plunged more than 15% intra-day today after the company reported its first-quarter results for 2024, which showed a narrower-than-expected loss but a decline in revenue. The airline announced an adjusted net loss of $145 million, or ($0.43) per share, beating analyst expectations by $0.09. However, its operating revenue fell 5.1% year-over-year to $2.2 billion.
The revenue decline and a 2.7% decrease in capacity YoY contributed to the stock's downturn, compounded by a cautious revenue forecast for the second quarter and the entire year. JetBlue's CEO, Joanna Geraghty, cited ongoing challenges from excessive capacity in the Latin region, which she anticipates will continue to pressure revenues and dampen the outlook for the year. Despite these challenges, she remains optimistic about the airline's ability to achieve profitability through its focused standalone strategy.
Operating expenses for the quarter rose 14.0% YoY to $2.9 billion, with cost per available seat mile increasing by 17.1%. Excluding special items, operating expenses saw a decrease of 3.7% YoY to $2.4 billion. The average fuel price per gallon for the quarter was $2.97.
For the upcoming second quarter, JetBlue expects revenues to decline between 10.5% and 6.5%, and forecasts a similar downward trend in full-year revenue by low single digits. The airline also projects a decrease in Available Seat Miles (ASMs) between 5.0% and 2.0% for the second quarter, with a comparable decline expected for the full year.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...