Hawaiian Holdings (HA – Snapshot Report) recently delivered its 4th consecutive positive earnings surprise, prompting analysts to revise their estimates higher for both 2014 and 2015. This sent the stock to a Zacks Rank #1 (Strong Buy).
Like many airlines this year, shares of Hawaiian Holdings have soared this year. But given favorable industry tailwinds, strong growth projections, solid earnings momentum and reasonable valuation, the stock can continue flying even higher.
Hawaiian Holdings is the parent of Hawaiian Airlines, which offers non-stop service to Hawaii from 11 U.S. gateway cities, along with service from Japan, South Korea, China, Australia, New Zealand, American Samoa and Tahiti. Hawaiian also provides approximately 160 jet flights daily between the Hawaiian Islands.
Third Quarter Results
Hawaiian Holdings posted better-than-expected Q3 results on October 21. Adjusted earnings per share came in at $0.79, beating the Zacks Consensus Estimate by 5 cents. It was a 14% increase over the same quarter last year.
Total revenue rose 7% to $639.5 million, ahead of the consensus of $636.0 million. Operating revenue per available seat mile (RASM) rose 4.6% while operating cost per ASM (CASM) declined slightly.
The load factor improved from 83.2% to 84.0% as the number of revenue passenger miles grew faster than the number of available seat miles.
Estimates Soaring
Following strong Q3 results, analysts unanimously raised their estimates for both 2014 and 2015. This sent the stock to a Zacks Rank #1 (Strong Buy).
The 2014 Zacks Consensus Estimate is now $1.52, up from $1.37 before the report. The 2015 consensus is currently $1.83, up from $1.56 over the same period. Based on these estimates, analysts are projecting 72% EPS growth for Hawaiian this year and 20% growth next year.
You can see that consensus estimates have steadily marched higher all year for the company as it has delivered 4 consecutive positive earnings surprises:
