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American Airlines Group (AAL) Beats on Q1 Earnings

American Airlines Group AAL came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. The Fort Worth, Texas based company serves customers with more than 6,700 daily flights in more than 50 nations across the globe.

American Airlines Group has a healthy track record with respect to earnings. The company has delivered positive earnings surprises in each of the last four quarters, with an average beat of 1.70%.

Zacks Rank: Currently, American Airlines Group has a Zacks Rank #3 (Hold), but that could change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: American Airlines Group beat on earnings. Adjusted earnings per share came in at $1.25, beating the Zacks Consensus Estimate of $1.18.

Revenue: Revenues of $9.44 billion were 4% below the year-ago figure. Quarterly revenues marginally beat the Zacks Consensus Estimate of $9.43 billion.

Key Stats: American Airlines Group’s results in the quarter benefited from low fuel costs. This is because fuel costs account for a major chunk of an airline's operating expenses. During the quarter, the company returned more than $1.2 billion to its shareholders through the payment of $61 million in dividends and buyback of shares worth of $1.6 billion. Furthermore, the carrier also declared a dividend of $0.10 per share. The dividend will be paid on May 18, 2016, to the shareholders on May 4. We are impressed by the company’s efforts to reward shareholders through stock repurchases and dividend payments. The carrier authorized an additional $2 billion buyback scheme which will end by Dec 31, 2017.

Check back later for our full write up on this American Airlines Group earnings report later!

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