US Airways Quarterly Earnings Sneak Peek

US Airways Group (NYSE:LCC) will unveil its latest earnings tomorrow, Wednesday, July 25, 2012. US Airways Group is a holding company that operates a major network air carrier through its wholly owned subsidiaries US Airways, Piedmont, PSA, MSC, and Airways Assurance Limited.

US Airways Group Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.55 per share, a rise of more than twofold from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $1.14. Between one and three months ago, the average estimate moved up. It has risen from $1.41 during the last month. For the year, analysts are projecting profit of $3.29 per share, a rise of more than fourfold from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked a loss of 13 cents per share versus a mean estimate of net loss of 23 cents per share.

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A Look Back: In the first quarter, the company swung to a profit of $48 million (28 cents a share) from a loss of $114 million (71 cents) a year earlier, beating analyst estimates. Revenue rose 10.3% to $3.27 billion from $2.96 billion.

Stock Price Performance: Between April 24, 2012 and July 23, 2012, the stock price rose $3.05 (33.78%), from $9.03 to $12.08. The stock price saw one of its best stretches over the last year between May 22, 2012 and May 31, 2012, when shares rose for seven straight days, increasing 24.5% (+$2.60) over that span. It saw one of its worst periods between February 16, 2012 and February 24, 2012 when shares fell for six straight days, dropping 23.2% (-$2.11) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 7.1% in revenue from the year-earlier quarter to $3.75 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 10.5% in the second quarter of the last fiscal year, 8.1% in the third quarter of the last fiscal year and 8.5% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.95 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.96 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 18.4% to $3.74 billion while assets rose 16.9% to $3.56 billion.

Analyst Ratings: With nine analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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