The firm noted that JetBlue should see some benefit from ongoing domestic capacity discipline, however, those benefits are tempered by international capacity trends.
"We expect some benefits in 2015 from 'Fare Families' as a method to monetize ancillary, but think meaningful margin improvement takes until 2017 as 'Fare Families' ramps and JetBlue adds seats to airbus 320s," Barclays analysts said.
The firm sees full-year earnings estimates of $1.70 per share in 2015 and $1.95 per share in 2016.
JetBlue is a passenger carrier company that provides air transportation services across the U.S., Caribbean and Latin America.
Separately, TheStreet Ratings team rates JETBLUE AIRWAYS CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate JETBLUE AIRWAYS CORP (JBLU) 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, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- JBLU's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 12.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 3900.00% and other important driving factors, this stock has surged by 84.75% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, JBLU should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- JETBLUE AIRWAYS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, JETBLUE AIRWAYS CORP increased its bottom line by earning $1.19 versus $0.51 in the prior year. This year, the market expects an improvement in earnings ($1.75 versus $1.19).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Airlines industry. The net income increased by 3325.0% when compared to the same quarter one year prior, rising from $4.00 million to $137.00 million.
- You can view the full analysis from the report here: JBLU Ratings Report