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Analyst Estimates and Recommendations for JetBlue Airways

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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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