JetBlue (JBLU) Stock Down Despite Q2 Earnings Beat, Eyes European Routes

JetBlue (JBLU) announced 2016 second quarter earnings today that largely beat analysts’ estimates, and potential growth to Europe.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of JetBlue Airways (JBLU) - Get Report  are down 0.46% to $17.20 in pre-market trade despite reporting better-than-expected earnings and in-line revenue for the 2016 second quarter.

The company earned 53 cents per diluted share for the period, topping analysts' estimates of 49 cents per share.

JetBlue reported revenue of $1.6 billion for the period. Wall Street was looking for revenue of $1.65 billion.

The company also announced that it would be expanding its successful Mint program for premium fliers by adding 30 new Airbus (EADSY) A321 aircraft to its fleet over the next seven years for a $3.6 billion list price, according to a company statement.

JetBlue, a primarily domestic airline company, will be adding 15 new Airbus planes in 2017 alone.

The company hopes the move will position it as "the carrier of choice" in transcontinental markets. JetBlue will decide by late 2017 if it will be opting to configure any of its 30 new Airbus models into long-range versions, giving the company "the potential to consider markets in Europe," said CEO Robin Hayes to the Wall Street Journal.

Passenger revenue per available seat mile dropped 10.5% from the previous year to 10.94 cents.

Separately, 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.

TheStreet Ratings rated this stock as a "buy" with a ratings score of B.

The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: JBLU

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