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Alaska Air (ALK) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Alaska Air Group (ALK) reported $2.48 billion in revenue for the quarter ended December 2022, representing a year-over-year increase of 30.5%. EPS of $0.92 for the same period compares to $0.24 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $2.5 billion, representing a surprise of -1.02%. The company delivered an EPS surprise of +2.22%, with the consensus EPS estimate being $0.90.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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Here is how Alaska Air performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Passenger Load Factor: 85.5% versus the five-analyst average estimate of 84.7%.

  • Operating expenses per ASM: 16.34 cents compared to the 15.83 cents average estimate based on four analysts.

  • Total revenue per ASM (RASM): 16.49 cents compared to the 16.68 cents average estimate based on four analysts.

  • Revenue passenger miles (RPM): 12855 million compared to the 12866.04 million average estimate based on four analysts.

  • Available seat miles (ASM): 15030 million versus 15176.16 million estimated by four analysts on average.

  • Fuel Expenses: $668 million versus the four-analyst average estimate of $678.31 million.

  • Operating expenses per ASM, excluding fuel and special items: 11.14 cents versus the four-analyst average estimate of 10.96 cents.

  • Economic fuel cost per gallon: $3.55 compared to the $3.62 average estimate based on four analysts.

  • Consolidated-ASMs per fuel gallon: 81.2 Gal versus the three-analyst average estimate of 78.57 Gal.

  • Revenues- Passenger: $2.26 billion versus $2.28 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +32% change.

  • Revenues- Cargo and other: $58 million versus the four-analyst average estimate of $63.07 million. The reported number represents a year-over-year change of +5.5%.

  • Revenues- Mileage Plan other: $157 million versus the four-analyst average estimate of $160.52 million. The reported number represents a year-over-year change of +21.7%.

View all Key Company Metrics for Alaska Air here>>>

Shares of Alaska Air have returned +20.4% over the past month versus the Zacks S&P 500 composite's +4.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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