Post Earnings Coverage as Copa Holdings’ Q1 Adjusted EPS Surged 46.9% Y-o-Y

Upcoming AWS Coverage on GOL Linhas Aereas Inteligentes Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 30, 2017 / Active Wall St. announces its post-earnings coverage on Copa Holdings, S.A. (NYSE: CPA). The Company posted its financial results for the first quarter fiscal 2017 (Q1 FY17) on May 10, 2017. The Panama City, Panama-based Company’s total operating revenues increased 10.6% and its adjusted EPS surged 46.9% y-o-y; beating market consensus estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Copa Holdings’ competitors within the Regional Airlines space, GOL Linhas Aereas Inteligentes S.A. (NYSE: GOL), reported on May 10, 2017, its consolidated results for Q1 2017. AWS will be initiating a research report on GOL Linhas Aereas Inteligentes in the coming days.

Today, AWS is promoting its earnings coverage on CPA; touching on GOL. Get our free coverage by signing up to: http://www.activewallst.com/register/.

Earnings Reviewed

In Q1 FY17, Copa Holdings’ total operating revenues rose to $616.72 million from $557.46 million recorded at the end of Q1 FY16. Total operating revenue numbers for Q1 FY17 beat market consensus estimates of $615.2 million.

The holding company for Panama’s national airline reported net profit of $102.31 million, or $2.41 per diluted share, in Q1 FY17 compared to net profit of $115.45 million, or $2.74 per diluted share, in the prior year’s comparable quarter. Excluding special items, adjusted net income for Q1 FY17 surged to $103.17 million, or $2.43 per diluted share, from $69.89 million, or $1.66 per diluted share, in the year ago same quarter. The adjusted net income for the reported period outperformed market consensus estimates of $2.29 per diluted share.

Operational Metrics

In the quarter ended on March 31, 2017, Copa Holdings incurred total operating expenses of $499.20 million versus $462.97 million in the year ago comparable quarter. The operating cost per available seat mile (CASM) increased 3.3% from 8.3 cents in Q1 FY16 to 8.6 cents in Q1 FY17. Additionally, CASM excluding fuel costs increased 1.6% from 6.1 cents in Q1 FY16 to 6.2 cents in Q1 FY17.

Operating profit increased to $117.53 million, or 19.1% of total operating revenues in Q1 FY17, from $94.49 million, or 16.9% of total operating revenues, in Q1 FY16. In the reported quarter, the Company generated $113.28 million of profit before taxes compared to $126.93 million in the same quarter of last year.

Revenue Segmentation

Copa Holdings’ total passenger revenue for Q1 FY17 was $601.48 million compared to $542.50 million reported in Q1 FY16. During the reported quarter, the airlines served 2.26 million customers, which was 6.8% higher than 2.12 million recorded in the year ago same period. For the reported quarter, load factor was 81.5% versus 77.4% in prior year’s same quarter. In Q1 FY17, consolidated passenger revenue per available seat mile (PRASM) also increased 6.3% to 10.4 cents from 9.7 cents in Q1 FY6. Furthermore, yield per passenger mile grew to 12.7 cents in Q1 FY17, from 12.6 cents in Q1 FY16.

During the reported period, the Cargo and mail revenue came in at $12.86 million, rising 2.8% from $12.51 million in Q1 FY16. However, other operating revenues fell 2.5% to $2.39 million in Q1 FY17, from $2.45 million in Q1 FY16.

Cash Matters and Balance Sheet

During the three months ended March 31, 2017, Copa Holdings’ cash flow from operations was $132.75 million versus $118.93 million in the prior year’s comparable quarter. The Company’s cash and cash equivalents balance as on March 31, 2017, stood at $269.90 million compared to $331.69 million as on December 31, 2016. Furthermore, the Company had long-term debt amounting $1.01 billion as on March 31, 2017, versus $961.41 million as on December 31, 2016.

Dividend

Copa Holdings announced that it will pay its second quarter dividend of $0.51 per share on June 15, 2017, on all outstanding Class A and Class B shares, to stockholders of record as of May 31, 2017.

Earnings Guidance

In its outlook for full year FY17, Copa Holdings anticipates consolidated capacity to grow approximately 7%, due to higher aircraft utilization. The operating margin for FY17 is forecasted to be in the range of 15% to17%.

Stock Performance

At the close of trading session on Friday, May 26, 2017, Copa Holdings’ share price finished the trading session at $111.69, slightly down 0.28%. A total volume of 229.02 thousand shares exchanged hands. The stock has soared 22.03% and 118.44% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have surged 22.97%. The stock is trading at a PE ratio of 14.75 and has a dividend yield of 1.83%.

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