LAN Airlines Increases Sales but Misses Estimates on Earnings
LAN Airlines (NYS: LFL) reported earnings on May 14. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), LAN Airlines met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins contracted across the board.
LAN Airlines booked revenue of $1.54 billion. The five analysts polled by S&P Capital IQ foresaw a top line of $1.55 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $1.32 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.22. The five earnings estimates compiled by S&P Capital IQ anticipated $0.24 per share. GAAP EPS of $0.22 for Q1 were 24% lower than the prior-year quarter's $0.29 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.7%, 240 basis points worse than the prior-year quarter. Operating margin was 7.4%, 420 basis points worse than the prior-year quarter. Net margin was 5.1%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.48 billion. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $6.51 billion. The average EPS estimate is $1.27.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 233 members out of 278 rating the stock outperform, and 45 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give LAN Airlines a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LAN Airlines is hold, with an average price target of $30.16.
- Add LAN Airlines to My Watchlist.
At the time this article 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.