Analyst Estimates and Recommendations for JetBlue Airways



Analyst estimates

After JetBlue Airways (JBLU) 2Q16 earnings release, the consensus analyst estimates fell slightly. For 3Q16 and 4Q16, the company’s sales are expected to grow by 1.9% and 3% to $1.7 billion and $1.6 billion, respectively. The consensus EPS (earnings per share) is expected to decrease by 7% and 14.6% to $0.54 and $0.48 for 3Q16 and 4Q16, respectively.

For fiscal 2016, analysts estimate that JBLU’s sales will increase by 2.7% to $6.6 billion, as compared to the 3.2% growth expected earlier. The company’s EPS is expected to rise by ~7% to $2.12.

Analysts are expecting JBLU to maintain sales growth of 7.8% for 2016 and of 6.4% for 2017. However, the growth in profitability is expected to slow going forward. For 2017, analysts are expecting EPS to decrease by 1% to $2.09. For 2017, EPS is expected to decline by 8% to $1.92.

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Analyst recommendations

Of the 13 analysts rating JBLU’s stock, 61.5% (eight analysts) have a “buy” rating, 38.5% (five analysts) have a “hold” rating, and none has a “sell” rating.

The stock’s consensus 12-month target price remains unchanged at $23.5, which indicates a 25.9% return potential as of July 26, 2016, when its closing price was $18.01. The analyst 12-month target prices for JBLU’s peers are as follows:

  • Delta Air Lines (DAL)—$53.85, with a 38% return potential
  • Southwest Airlines (LUV)—$48.55, with a 26.8% return potential
  • Spirit Airlines (AAL)—$55.75, with a 26.7% return potential
  • United Airlines (UAL)—$58.7, with a 23% return potential
  • Alaska Airlines (ALK)—$80.33, with a 20.7% return potential
  • American Airlines (AAL)—$41.37, with a 13.2% return potential

Notably, JBLU makes up 0.37% of the SPDR S&P Midcap 400 ETF (MDY).

In the next and final part, we’ll wrap up the series by looking at JBLU’s valuation compared to peers.


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