Earnings Preview: JetBlue Airways

JetBlue Airways Corporation (JBLU) is expected to report Q3 earnings before market open Thursday, Oct. 23, with a conference call scheduled for 9:00 am ET.

Guidance

Analysts are looking for EPS of (4c) on revenue of $899.31M. The consensus range is (11c) to 2c for EPS, and $883M to $908M for revenue, according to First Call.

Analyst Views

The company gave some insight into its future performance on its Q2 conference call. JetBlue CEO Dave Barger said  that revenue gains are "clearly not keeping pace" with the "extraordinary increase" in the price of jet fuel. The company expects Q3 operating margin of (1%) to 1%, and Q4 capacity down 6% to 9%. UBS upgraded JetBlue, along with most of the airline sector, on September 15, on the belief airline estimates are too low and will move higher. The firm upgraded JetBlue (JBLU) to Neutral from Sell and Delta (DAL), AirTran Holdings (AAI), Allegiant Travel Company (ALGT), AMR Corporation (AMR), Continental Airlines (CAL), US Airways Group (LCC), Northwest Airlines (NWA) and UAL Corporation (UAUA) to Buy from Neutral. Argus upgraded the company to Buy from Hold, on September 16. The firm upgraded JetBlue citing capacity cuts that should lead to higher fares.