The pure-play aviation ETF U.S. Global Jets ETF (JETS – Free Report) gained about 8.3% in the last one month (as of May 15, 2017) compared with 3.4% returns offered by SPDRÂ S&P 500 ETF (SPY – Free Report) despite mixed earnings results. The industry is in the bottom 29% of the Zacks Industry Rank at the time of writing, giving bearish signals (see all industrial ETFs here).
Let’s delve a little deeper into the earnings picture and find out what is driving this corner higher.
Q1 Results in Detail
Delta Air Lines Inc. (DAL – Free Report) reported almost a month ago with a bottom-line beat and a top-line miss. Operating revenues of $9.148 billion came below the Zacks Consensus Estimate of $9.156 million. Revenues fell marginally from the year-ago figure. The carrier’s earnings (excluding special items) of $0.77 per share beat the Zacks Consensus Estimate of $0.73. Earnings, however, fell over 41% on a year-over-year basis. The company has a Zacks Rank #3 (Hold) and a VGM (Value-Growth-Momentum) score of ‘B’.
United Continental Holdings (UAL – Free Report) posted first-quarter 2017 earnings (on an adjusted basis) of $0.41 per share, beating the Zacks Consensus Estimate by $0.04. The bottom line, however, plunged 66.7% year over year due to higher costs. Operating revenues of $8,420 million were marginally ahead of the Zacks Consensus Estimate of $8,362.5 million. Revenues increased 2.7% on a year-over-year basis. United Continental has a Zacks Rank #3 and a VGM score of ‘B’.
Low cost carrier Southwest Airlines Co. (LUV – Free Report) reported lower-than-expected earnings and revenues in the first quarter. The carrier’s earnings per share (on an adjusted basis) of 61 cents missed the Zacks Consensus Estimate of 62 cents. Earnings also declined 30.68% year over year. Operating revenues of $4,883 million marginally missed the Zacks Consensus Estimate of $4,894.1 million but improved 1.18% year over year. Zacks Rank #3 LUV has a VGM score of ‘A’.
