What Are Analysts Estimating for JetBlue Airways in 3Q17?
After clocking slow growth in 2016, analysts are estimating JetBlue Airways’ (JBLU) revenue to double in 2017. For 3Q17, revenues are estimated to rise 7.3% year-over-year (or YoY) to $1.9 billion. For 4Q17, analysts expect revenue to rise 7.7% YoY for 4Q17 to $1.8 billion.
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These figures would result in full-year 2017 revenue growth of 6.6% YoY to $7.1 billion. JBLU had clocked revenue growth of 3.4% YoY in 2016 and revenue growth of 10.3% YoY in 2015.
For 3Q17, EBITDA is expected to fall -4.5% YoY to $435.5 million. For the fourth quarter, EBITDA is expected to remain flat at almost 0.1% YoY to $399.4 million. For the third quarter, the decline was primarily due to the fall in EBITDA margins. EBITDA margins are expected to fall to 23.4% from 26.3% in 3Q16. For 4Q17, EBITDA margins are expected to fall to 22.6% from 24.3% in 4Q16 and will be a major contributor to EBITDA growth.
These figures would lead to a full-year 2017 EBITDA decline of 8.2% YoY to $1.6 billion with an EBITDA margin of 22.1%, lower than the 25.7% margin clocked in 2016. The 2017 decline in EBITDA is a result of the poor 1Q17 performance.
For the third quarter, earnings are expected to fall 2.4% YoY to $0.57 per share due to a 2.5% YoY decline in net profit. Similarly, for 4Q17, earnings are expected to fall 6.2% YoY to $0.47 per share due to a 7.0% YoY decline in net profit.
For the full-year 2017, earnings per share could fall 13.1% YoY to $1.93 per share due to a 15.1% decline in net profits. Some of the net profit decline was offset by the declining number of shares. The total number of shares outstanding for 2017 is expected to fall 3.0% to 332 million shares, a result of JetBlue’s share buyback program.
Investors can get exposure to JetBlue by investing in the PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ), which invests ~2.7% of its holdings in the stock. It also holds 5% each in Delta Air Lines (DAL) and United Continental (UAL) but doesn’t invest in American Airlines (AAL).