Atlantic Coast Airlines Misses

Atlantic Coast Airlines (ACAI Quote) reported first-quarter earnings that were more than 80% better than year-ago results, but it missed Wall Street expectations by a wide margin, causing shares to drop 4.5%.

ACA announced first-quarter net income of $3.6 million, or 8 cents a share, nearly double the $2 million, or 4 cents a share it had a year earlier. Revenue came in at $212 million, up 3.8%, from the $204.2 million it had a year earlier.

Excluding charges for the early retirement of aircraft and costs related to its transformation from a regional carrier into low-cost carrier Independence Air, the company earned 17 cents a share, well shy of the 23-cent Wall Street estimate. In reaction, shares of ACA dropped 34 cents, to $7.19 ...