Hawaiian Holdings Beats on EPS but GAAP Results Lag


Hawaiian Holdings (NAS: HA) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Hawaiian Holdings met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.

Gross margins grew, operating margins improved, and net margins dropped.

Revenue details
Hawaiian Holdings tallied revenue of $434.0 million. The seven analysts polled by S&P Capital IQ expected revenue of $431.9 million. Sales were 26% higher than the prior-year quarter's $343.8 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.31. The eight earnings estimates compiled by S&P Capital IQ predicted $0.28 per share on the same basis. GAAP EPS of $0.40 for Q4 were 71% lower than the prior-year quarter's $1.36 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 25.2%, 110 basis points better than the prior-year quarter. Operating margin was 7.9%, 20 basis points better than the prior-year quarter. Net margin was 4.8%, 1,570 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $441.7 million. On the bottom line, the average EPS estimate is $0.01.

Next year's average estimate for revenue is $1.97 billion. The average EPS estimate is $1.22.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 183 members out of 222 rating the stock outperform, and 39 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Hawaiian Holdings a green thumbs-up, and 19 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hawaiian Holdings is outperform, with an average price target of $9.25.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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