Could JetBlue’s Valuation Change after 3Q16?
Currently, JetBlue Airways (JBLU) is valued at 4x its forward EV/EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple.
Transportation & Logistics
Market Realist has the latest news on transportation and logistics, from airlines to supply chain solutions.
JetBlue: The Latest Analyst Estimates and Recommendations
Following JetBlue’s 2Q16 earnings release, analysts’ consensus estimate for revenues remains unchanged.
JetBlue’s New Investments: A Pioneer in Private Jet Services?
JetBlue announced that it had undertaken a small stake (the exact stake is unclear) in JetSuite, the fourth-biggest private jet operator in the United States.
Why Does JetBlue Expect Unit Costs to Rise in 4Q16?
For the third quarter of the year, JetBlue Airways’ (JBLU) operating expenses—excluding fuel and profit sharing—rose 3.1% to 7.86 cents.
JetBlue’s: Can Investors Expect Improved Revenue in 4Q16?
For 3Q16, JetBlue Airways’ (JBLU) revenues stood at $1.73 billion—a 2.6% year-over-year increase compared to revenue of $1.69 billion in 3Q15.
JetBlue Airways: Checking Up on Operational Performance in 3Q16
JetBlue Airways (JBLU) saw average traffic of about 11.9 billion passenger miles for the quarter, a 7.6% year-over-year increase
Richard Bernstein: Don’t Fear the Bear Market
A legitimate bull market In this series, we’ve taken a look at Richard Bernstein’s views on investors’ fear of an impending bear market. In Richard Bernstein Advisors’ October Insights newsletter, he rejects the notion that the current rise in US stocks (SPLV) (OEF) has been brought about only by the Fed’s easy monetary policy. In the […]
Do Analysts Expect JetBlue’s Revenue to Rise in 3Q16?
Analysts expect JetBlue Airways’ (JBLU) 3Q16 revenue to come in at $1.7 billion, a year-over-year rise of 2.2%.
How Does GE’s Aviation Segment Look Pre-3Q16 Results?
General Electric’s Aviation segment General Electric’s (GE) Aviation segment is the second-largest contributor to the company’s overall revenues. This segment’s 22.5% operating margins in 1H16 were the largest among all eight segments reported under GE Industrial. Commercial aviation According to the International Air Transport Association (or IATA), global air traffic is expected to fall to […]
Why Do Analysts Expect General Electric’s 3Q16 Revenues to Rise?
Analysts’ estimates Analysts estimate that General Electric’s 3Q16 revenues will total $30.0 billion, up by 7.3% on a year-over-year basis. Even though energy markets are acting as a deterrent to General Electric’s (GE) overall revenues, the favorable business environment in power, aviation, and healthcare will jack up the revenues. Analysts expect the next four quarters’ revenue to […]
Why Is Delta’s Pilot Deal Important for the Airline Industry?
All airline pilots have their eyes on Delta Air Lines’ (DAL) final agreement with its pilots. This is because Delta’s deal will set a precedent in the industry.
The Airline Industry’s Cyclical Nature Is a Mixed Blessing
The airline industry is cyclical, which means that its business depends on the country’s economic growth. Most analysts have revised their GDP estimates downward, resulting in a consensus estimate of 2.9% YoY growth.
Why FedEx Sees Volume Growth in the Future of Its Freight Segment
FedEx’s (FDX) Freight segment revenues rose 4% from $1.6 billion in fiscal 1Q16 to ~$1.7 billion in fiscal 1Q17.
How TNT Acquisition Is Driving FedEx’s European Growth
On May 25, 2016, FedEx (FDX) completed the 4.4 billion euro acquisition of the Netherlands-based TNT Express NV.
Looking at US Truckload Carriers through Analysts’ Eyes
In this part of the series, we’ll take a look at what Wall Street analysts are saying about US truckload carriers and how they’re rating the stocks.
Are GE’s Free Cash Flows Sufficient for Dividend Growth?
General Electric’s 2016 free cash flows are expected to remain at $8.2 billion. This is mainly due to free cash flows of -$6.0 billion generated in 1H16.
Which Truckload Carrier Posted the Most Debt in 2Q16?
Landstar System (LSTR) and Heartland Express (HTLD) have higher available cash on their balance sheets than total debt.
Is Southwest Airlines On Track to Achieve Its Utilization Goals?
In 2015, Southwest Airlines’ prudent approach to capacity growth resulted in the better utilization of its capacity.
Will Alaska Air’s Unit Revenues Continue to Fall in September?
Foreign currency fluctuations and lower fuel surcharges in the international market will have a negative impact on Alaska Air Group’s unit revenues.
Will Alaska Air Group’s Capacity Expand More in 2016?
For August 2016, Alaska Air Group’s (ALK) capacity increased by 10.3% YoY. After average growth of 13% in 1Q16, its growth slowed down to 11% in 2Q16.
How Traffic Growth Lags behind Capacity at Southwest Airlines
In July 2016, Southwest Airlines’ (LUV) traffic grew by 1.4% YoY, which was slightly lower than its capacity growth of 2.3% YoY.
Will the Cyclical Sector Outperform the Defensive Sector?
The cyclical sector has a sizeable correlation with the different phases of the business cycle.
How Will Alaska Air Group’s Strategy Impact Unit Revenues?
Alaska Air Group (ALK) does not give any future unit revenue guidance. However, we can expect the PRASM’s decline to continue.
Can Alaska Air Group’s Capacity Growth Be Sustained for the Rest of 2016?
For July 2016, Alaska Air Group’s (ALK) capacity increased by 9.6% year-over-year. After an average growth of 13% in 1Q16, growth slowed to 11% in 2Q16 and is slowing further in the third quarter.
Could JetBlue Airways’ Valuation Change after 2Q16?
As of July 22, 2016, JetBlue was valued at 3.8x its forward EV-to-EBITDA multiple, which is lower than its average valuation of 4.8x since September 2009.
Does JetBlue Airways’s Capacity Growth Support Analyst Estimates?
Capacity growth Like other airlines, JetBlue Airways (JBLU) has taken advantage of falling crude oil prices to expand its existing fleet. JetBlue’s double-digit revenue growth has been fueled by double-digit growth in its capacity. Historically, JetBlue Airways has seen the highest capacity growth among the seven major airlines. Spirit Airlines (SAVE) has seen the highest growth, followed by Alaska […]
Which US Truckload Carrier Holds First Place in Dividend Growth?
Among major truckload companies, in 1Q16, Werner Enterprises (WERN) declared the highest dividend growth, at $0.06 per share, which is a 20% YoY increase.
American Airlines and Its Geographic Mix of Revenues
Revenues from American Airlines’ foreign operations make up about 30% of its total operating revenues. The airline has been consistently expanding its global footprint by adding new routes.
Which Is the Least Leveraged Truckload Carrier among Major Peers?
Among truckload companies, Landstar and Heartland have a lot of available cash compared to total debt. Swift and J.B. Hunt have high net debt-to-EBITDAs.
The Word on the Street: What Analysts Are Saying about Truckload Carriers
Swift Transportation has a consensus rating of 4.36 or “strong buy” among truckload carriers. Out of 22 analysts, 15 gave it a “buy” recommendation.
FedEx Freight: Higher Demand from Large Customers
FedEx expects FedEx Freight revenues to rise in fiscal 2017.
What’s the Best Approach for Valuing American Airlines?
For airlines such as American Airlines (AAL), we go a step further and use an EV+ Op. leases-to-EBITDAR ratio.
What Are American Airlines’ Key Strengths and Weaknesses?
Some key strengths keep American Airlines ahead of its competitors. It’s the largest airline in fleet, capacity, and number of passengers. It also has a strong hold on key hubs.
What Are American Airlines’ Major Revenue Drivers?
American Airlines’ (AAL) capacity growth is one of the slowest in the industry. However, it has the highest capacity among its peers.
What Are American Airlines’ Key Revenue Streams?
In this part of the series, we’ll look at the main services and categories that add to American Airlines’ (AAL) revenues. The major component of revenues still comes from airfares.
American Airlines Stock: The Past, the Crisis, the Recovery
After the merger, American Airlines became the world’s leading airline in terms of fleet size, network, and finances. American Airlines stock has risen more than 270% since 2011.
How Did American Airlines Recover from Bankruptcy?
Soon after US Airways declared its intention to merge with American Airlines, AAL started working on its weak points and restructuring costs.
A Quick Glance at Major US Railroads’ Fleet Age
The fleet of railroads includes railcars and locomotives. In this part, we’ll compare the average locomotive fleet age of US Class I railroads.
How Does the Market Value Major US Railroads?
The EV-to-forward EBITDA ratio denotes how a railroad is valued for each dollar of EBITDA that it’s anticipated to earn.
United Parcel Service: Key Growth Focus Areas
Recently, United Parcel Service has broadened the service offering of UPS My Choice to 15 more countries and territories in the Americas and Europe.
ORION: A Star in United Parcel Service’s Technology Crown
United Parcel Service, through 10,000 routes optimized with ORION, saves up to 1.5 million gallons of fuel per year.
A Deep Dive into UPS’s Supply Chain and Freight Segment
United Parcel Service’s (UPS) Supply Chain and Freight segment includes forwarding and logistics services, UPS Freight, truckload freight brokerage, and financial services through UPS Capital.
UPS Domestic Package Segment: Largest Courier Service in the US
UPS’s US Domestic Package segment consists of the time-sensitive delivery of letters, documents, and packages across the US. As the jewel in the company’s crown, this segment’s share averaged 61.1% of the total revenues in the last six years.
United Parcel Service: A Company Overview
In 2015, United Parcel Service reported total revenues of $58.4 billion. The company’s primary competitor in the US is the Memphis-headquartered FedEx Corporation.
United Parcel Service: Fostering Business through Acquisitions
In 1988, United Parcel Service (UPS) bought its Italian partner, Alimondo, a move aimed at expansion in Europe. In the same year, UPS went on an acquisition spree.
Analyzing FedEx’s Revenue Streams
In fiscal 2015, FDX increased its revenues by $1.9 billion. Its total revenue was a $47.4 billion for the year.
What Is FedEx’s Business Model?
FedEx provides a portfolio of transportation, e-commerce, and business services through wholly owned subsidiaries.
Is There Overcapacity in the Airline Industry?
In February 2016, the airline capacity of the eight major airlines exceeded their traffic growth by an average of 2%.
Which Airline Has the Highest Leverage?
The airline industry is a capital-intensive industry with heavy investments required in building infrastructure, fleets, and their maintenance. As a result, airline stocks generally have high levels of debt on their balance sheets.
Spirit Airlines: New CEO, New Strategy
Spirit Airlines has historically followed a low-cost structure, and took numerous measures to keep its cost components the lowest in the industry.