Air Canada Earnings Predictions Enhanced by Atb Cap Markets

Air Canada (OTCMKTS:ACDVF - Free Report) has recently seen an adjustment in its earnings forecasts by analysts at Atb Cap Markets. According to a research report released on Sunday, November 3rd, the earnings estimate for the fiscal year 2024 has been raised significantly. Analyst C. Murray now anticipates that Air Canada will achieve earnings of $2.29 per share, a notable increase from the previous estimate of $1.38.

The current consensus estimate for Air Canada’s full-year earnings stands at $1.65 per share, indicating optimism among analysts regarding the company's financial performance. Additionally, Atb Cap Markets provided a breakdown of its projections for Air Canada's earnings in the upcoming quarters: a projected loss of $0.03 EPS for Q4 2024, a loss of $0.36 EPS for Q1 2025, followed by a recovery with earnings of $0.31 EPS in Q2 2025, and further growth to $1.53 EPS in Q3 2025. By Q4 2025, earnings are expected to dip again slightly to a loss of $0.14 EPS, with FY2026 earnings estimated at $1.61 EPS.

In a related note, Stifel Canada has upgraded its rating for Air Canada from a "hold" to a "strong-buy," reflecting increased confidence in the airline's financial future.

Air Canada Shares on the Rise

Air Canada's stock has been performing positively, opening at $16.00 on the Wednesday following the report. The company's market capitalization is currently estimated at $5.74 billion, featuring a PE ratio of 3.31 and a beta of 2.05, which suggests higher volatility compared to the market. Over the past few months, Air Canada has seen its shares fluctuate, with a 50-day moving average price at $12.49 and a two-hundred-day moving average at $12.63. Notably, the stock has experienced a 12-month low of $10.16, with the high reaching $16.02.

Air Canada recently reported its quarterly earnings on August 7th, where it posted earnings of $0.72 per share, exceeding analysts’ expectations of $0.62 by a margin of $0.10. During the quarter, the company recorded revenue of $4.03 billion and showcased a remarkable return on equity of 133.91%, reflecting its efficiency in generating profits from shareholders' equity, along with a net margin of 11.53%. This performance further supports the positive outlook projected by Atb Cap Markets.

Understanding Air Canada's Business

Air Canada, the national airline of Canada, offers a variety of services including domestic, U.S. transborder, and international flights. The airline operates under several brand names, including Air Canada Vacations and Air Canada Rouge, catering to both leisure and business travelers in and out of Canada. It additionally engages in capacity purchase agreements with regional carriers, broadening its reach in the aviation market.

Airline, Earnings, Forecast