American Airlines (AAL) Stock Soars on Q2 Earnings Beat
NEW YORK (TheStreet) -- Shares of American Airlines Group (AAL) - Get Report are up 3.72% to $36.26 in pre-market trade after the company reported 2016 second quarter earnings beating Wall Street's estimates.
The company reported non-GAAP adjusted earnings per share of $2.81, topping estimates of $1.68 per share.
American Airlines also reported revenue of $10.36 billion, down 4.3% from the previous year. Analysts were looking for revenue of $10.32 billion for the quarter.
The company said its second quarter revenue was hurt by competitive capacity growth, continued global macroeconomic softness and foreign currency weakness.
Consolidated passenger revenue per available seat mile was 12.71 cents, a 6.3% drop from the previous year. The airline industry has struggled recently as the number of flights and seats available exceed demand.
"Our recently announced AAdvantage credit card agreements show that the world's largest airline network is a powerful draw for both our business partners and our customers," CEO Doug Parker said.
Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C-.
The company's strengths can be seen in multiple areas, such as its notable return on equity and good cash flow from operations. However, TheStreet Ratings finds weaknesses including unimpressive growth in net income, generally higher debt management risk and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: AAL
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.