Earnings Preview: JetBlue Airways Reports Q4 Results Thursday

| About: JetBlue Airways (JBLU)

JetBlue Airways Corporation (NASDAQ:JBLU) is scheduled to release last fiscal quarter's results before the opening bell on January 26, 2012. JetBlue Airways Corporation provides passenger air transportation services in the United States. The company was founded in 1998 and is based in Forest Hills, New York.

52 Week High: $6.52
52 Week Low: $3.40
Book Value: $5.74
Float Short: 12.99%

Analysts are expecting a drop of $-0.09 in earnings per share compared to last quarter's results of $0.12. A beat of $0.03 per share will top the estimated per share earnings. Analyst estimates range between $-0.02 and $0.08 per share.

The P/E ratio has been under pressure, as the current trailing twelve months P/E ratio is 22.7, while the forward P/E ratio is now 11.52. An upside earnings report may put a lot of wind in the sails. In the last month, the stock has increased in price 1.87%, and moving in price -16.18% from one year ago. The stock is performing similarly to the general stock market up to this point. When reviewed with the S&P 500, the year-to-date positive change is 0.03%.

Although I wrote about my bearish view of the industry in a recent article, JetBlue is still new enough to have fresh ideas, not an old legacy airline. While I have to include JetBlue in my hold or bearish outlook, I would rate JetBlue one of the better airlines and investors likely will agree. The stock is trading above the 200-day moving average, and all in all doing well for an airline. Probably the only thing worse than going through TSA check points is investing in an airline. There are just so many easier ways to make money in the market, why beat your head against the seat in front of you?

The company has rising revenue year-over-year of $3.78 billion for 2010 vs. $3.29 billion for 2009. The bottom line has rising earnings year-over-year of $97.00 million for 2010 vs. $61.00 million for 2009. The company's earnings before interest and taxes are rising, with an EBIT year-over-year of $333.00 million for 2010 vs. $285.00 million for 2009. Rising revenue along with rising earnings is a very good sign, and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue:


Here is the last few quarters to get an idea how well they perform compared to estimates:

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for JBLU:


The number of days to cover short interest based on average daily trading volume for JBLU:


I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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Tagged: , Regional Airlines, Earnings
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