JetBlue had a negative free cash flow of $5 million in 3Q14. Positive free cash flow affords companies the financial flexibility to reduce debt or provide returns to shareholders in the form of dividend.
The earnings-to-fixed-charge ratio measures a firm’s ability to meet its fixed charges, which include interest expenses, amortization of debt cost, and rent.
JetBlue’s net income increased to $79 million from $71 million in 3Q13, despite an increase in income tax expenses. Because JetBlue reduced its debt during the quarter, net margin increased to 5.2% from 4.9% in 3Q13.
Salary, wages, and benefits increased as a result of higher wage rates. Airlines have also had to increase headcount to adhere to the new Federal Aviation Administration (or FAA) regulations on flight, duty, and rest.
The growth in demand for air travel, combined with reduced fuel costs, has resulted in share price appreciation of airline stocks and transportation exchange-traded funds.
Revenue from JetBlues’ Even More Space grew at a five-year compounded annual growth rate of ~30% from $45 million in fiscal year 2008 to $170 million in fiscal year 2013.
Capacity expansion by JetBlue and its competitors in the Caribbean and Latin American regions has impacted yield. JetBlue increased capacity in these regions by 17% year-over-year.
JetBlue’s operating revenue increased by 6% to $1,529 million in 3Q14. The company states that its on-time performance was impacted by congestion in the air space.
JetBlue Airways Corporation is the fifth-largest passenger carrier in the US based on revenue passenger miles. It serves more than 30 million passengers.
Verizon has some concerns to address. Sprint launched an attractive unlimited plan for iPhone 6 in September, making it the biggest threat to
A 4G tablet customer uses more data than a 3G smartphone customer. So net tablet postpaid subscriber growth is good news for Verizon’s investors.
Verizon’s MORE Everything plan gives you unlimited calling, unlimited messaging, shareable data, mobile hot spots, and 25 gigabytes of cloud storage.
Verizon’s superior network performance is rapidly winning over 4G subscribers. In the last quarter, it booked 1.2 million postpaid net subscribers.
Management is committed to turning around the Verizon Edge program. The penetration rate of this installment plan has been on the decline.
Verizon’s lower churn rate and ability to sustain customer loyalty suggest it will be successful with its iPhone upgrades.
Verizon’s overall revenues grew by a year-over-year rate of 4.3% in 3Q14. The Wireless segment contributed 68% as of 3Q14.
As of November 2014, Starbucks’ (SBUX) year-to-date return was 3.3%, compared to returns of 10.9% on the Standard & Poors (or S&P) 500 Index and 9.5% on the restaurant segment.
Investors sell Starbucks after fourth-quarter results Starbucks (SBUX) reported its earnings on October 30, 2014, after the market closed. Shares began trading at $75.25 the next day when shares were…
Starbucks’ dividend yield for 4Q14 was 1.34%. Wall Street analysts estimate this dividend yield to be higher in the first quarter of 2015, or 1.58%.
In the fourth quarter of 2014, Starbucks (SBUX) reported a net income of $587 million compared to a net loss of $1.232 billion in the fourth quarter a year ago.