What to Expect When American Airlines (AAL) Reports Q2 Results Friday

American Airlines (AAL) is scheduled to post its 2016 second quarter results before Friday’s opening bell.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of American Airlines Group (AAL) - Get Report are dropping 3.38% to $34.71 on Thursday afternoon ahead of the company's 2016 second quarter earnings due out before tomorrow's market open.

Analysts are expecting a year-over-year decline in earnings and revenue.

Wall Street is projecting that the Fort Worth-based air carrier will post earnings of $1.68 per share on revenue of $10.32 billion.

During the same quarter last year, American earned $2.62 per diluted share on revenue of $10.83 billion.

Earlier today, Southwest Airlines (SUV) reported weaker-than-expected results for the 2016 second quarter.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its notable return on equity and good cash flow from operations.

But the team also finds weaknesses including unimpressive growth in net income, generally higher debt management risk and a generally disappointing performance in the stock itself.

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.

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

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