Why Copa Holdings (CPA) Stock Plummeted Today

NEW YORK (TheStreet) -- Copa Holdings  (CPA) stock plummeted today after the Latin American airline company was downgraded by analysts following its poor guidance for the full year despite strong second quarter earnings.

Analysts responded negatively to Copa's earnings results this morning, and downgraded the company to "market perform" from "strong buy" at Raymond James  (RJF), and to "equal weight" from "overweight" at Evercore Partners  (EVR).

In its full year outlook, Copa revised its operating margin guidance down to a range of 18% to 20% from its previous 19% to 21%, due to capacity reductions in Venezuela.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

For the second quarter, the Panama-based company earned $2.61 per share, beating analysts estimates by 39 cents per share.

The company reported $673.6 million in revenue for the quarter, topping analysts expectations by $6.24 million.

Shares of Copa closed down -15.61% to $127.36 today.

Separately, TheStreet Ratings team rates COPA HOLDINGS SA as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate COPA HOLDINGS SA (CPA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, increase in stock price during the past year and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

CPA Chart CPA data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

More from Markets

Asia Markets Fall on Latest Tariff Threats From Trump

Asia Markets Fall on Latest Tariff Threats From Trump

Google Invests in JD.com; Comcast-Disney Battle Nears Head -- ICYMI

Google Invests in JD.com; Comcast-Disney Battle Nears Head -- ICYMI

REPLAY: Jim Cramer on Tariff Worries, Oil, Alphabet and Centene

REPLAY: Jim Cramer on Tariff Worries, Oil, Alphabet and Centene

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Dow Drops Over 100 Points on Trade War Worries

Dow Drops Over 100 Points on Trade War Worries