CPA's Q4 Earnings Coming Up: What's in the Offing for the Stock?

Copa Holdings CPA is scheduled to report fourth-quarter 2024 results on Feb. 12, after market close.See the Zacks Earnings Calendar to stay ahead of market-making news.Copa Holdings has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 11.8%.Copa Holdings, S.A. Price and EPS Surprise Copa Holdings, S.A. price-eps-surprise | Copa Holdings, S.A. QuoteThe Zacks Consensus Estimate for CPA’s soon-to-be-reported quarter’s earnings has been revised downward by 1.8% in the past 60 days to $3.84 per share. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $880.5 million, which indicates a decline of 4% from the year-ago levels.CPA’s top line is expected to have been significantly affected by economic uncertainties in the December-end quarter of 2024. Passenger revenues, which account for the bulk of the top line, are likely to have decreased in the to-be-reported quarter. The decrease is primarily expected to have been driven by the last-minute suspension of flights between Panama and Venezuela at the end of July, weaker currencies in Latin America and increased industry capacity in the region.Our estimate for passenger revenues is pegged at $849.8 million, down 3.4% from the fourth-quarter 2023 actuals. Meanwhile, estimates for revenues from the cargo and mail segment are pegged at $26.7 million.Moreover, high operating expenses are likely to have hurt Copa Holdings’ bottom line. This surge in operating expenses is anticipated to be primarily driven by the increase in salaries, benefits and fuel costs, exacerbating CPA’s prospects in the to-be-reported quarter. Our estimate for total operating expenses in the December-end quarter has increased 2% from the third-quarter 2024 actuals.What Our Model Says About CPAOur proven model does not conclusively predict an earnings beat for Copa Holdings this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.CPA has an Earnings ESP of +1.36% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Highlights of CPA’s Q3 ResultsCopa Holdings' third-quarter 2024 earnings per share of $3.50 surpassed the Zacks Consensus Estimate of $3.48 but declined 20.3% year over year. Revenues of $854.7 million lagged the Zacks Consensus Estimate of $860 million and fell by 1.5% year over year due to upbeat passenger revenues.Passenger revenues (which contributed 95.8% to the top line) decreased 1.8% from the third quarter of 2023. Stocks to ConsiderHere are a few stocks from the broader Zacks Transportation sector that investors might want to consider, as our model shows that these have the right combination of elements to beat estimates in the next earnings release.FedEx FDX has an Earnings ESP of +5.75% and a Zacks Rank #3 at present. FDX is set to release third-quarter fiscal 2025 results on March 20.You can see the complete list of today’s Zacks #1 Rank stocks here.FDX has a discouraging earnings surprise history, having surpassed the Zacks Consensus Estimate thrice in the preceding four quarters and missing once. The average miss is 2.4%.Expeditors International of Washington EXPD has an Earnings ESP of +6.54% and a Zacks Rank #3 at present. EXPD is slated to release fourth-quarter 2024 results on Feb. 18. EXPD has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missing once. The average beat is 4.8%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks