Free Research Report as LATAM Airlines Reported Improved Q3 Results

LONDON, UK / ACCESSWIRE / December 29, 2017 / Active-Investors.com has just released a free earnings report on LATAM Airlines Group S.A. (NYSE: LTM) (”LATAM Airlines”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=LTM. The Company released its financial results on November 15, 2017, for the third quarter of the fiscal year 2017. The Santiago, Chile-based Company’s total operating revenues increased 5.0%. Register today and get access to over 1000 Free Research Reports by joining our site below: www.active-investors.com/registration-sg.

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, LATAM Airlines Group most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below: www.active-investors.com/registration-sg/?symbol=LTM.

Earnings Highlights and Summary

In Q3 FY17, LATAM Airlines’ total operating revenues rose to $2.65 billion from the $2.52 billion recorded at the end of Q3 FY16. The airline reported a net income of $160.62 million, or 6.1% of total operating revenues, in Q3 FY17, which came in above the $4.74 million, or 0.2% of total operating revenues, in the prior year’s same quarter.

Operational Metrics

In the quarter ended September 30, 2017, LATAM Airlines incurred total operating expenses of $2.40 billion versus $2.37 billion in the year ago comparable quarter. The Company’s operating income increased to $244.03 million, or 9.2% of total operating revenues, in Q3 FY17 from $152.32 million, or 6.0% of total operating revenues, in Q3 FY16. Additionally, in the reported quarter, the Company posted income before taxes and minority interest of $204.36 million compared to $68.77 million in Q3 FY16.

Meanwhile, the Company’s earnings before interest, tax, depreciation, and amortization (EBITDA) increased to $496.22 million, or 18.8% of total operating revenues, during the reported quarter from $395.93 million, or 15.7% of total operating revenues, in Q3 FY16. Furthermore, LATAM Airlines’ earnings before interest, taxes, depreciation, amortization, and rent/restructuring costs (EBITDAR) came in at $635.78 million, or 24.0% of total operating revenues, for Q3 FY17, rising from $543.37 million, or 21.6% of total operating revenues, in the prior year’s corresponding quarter.

Revenue Segmentation

LATAM Airlines’ total passenger revenue was $2.23 billion for Q3 FY17, rising 6.0% from the $2.10 billion reported in Q3 FY16. During the reported quarter, the airlines served 17.62 million customers compared to 17.31 million recorded in the year ago same period. In Q3 FY17, consolidated passenger revenue available seat kilometers (ASK) increased 4.3% to 6.3 cents from 6.1 cents in Q3 FY16. For the reported quarter, load factor was 85.6% versus 84.8% in Q3 FY16. Furthermore, yield based on revenue per passenger kilometer (RPK) grew to 7.4 cents in Q3 FY17 from 7.2 cents in Q3 FY16.

During the reported period, the Company’s Cargo revenue came in at $782.41 million compared to $801.57 million in Q3 FY16. The Company transported a total of 223 thousand tons of cargo during Q3 FY17 versus 231 thousand tons in the last year’s comparable quarter. In Q3 FY17, cargo’s available transport kilometers (ATK) were 1.57 billion compared to 1.66 billion in Q3 FY16. The segment’s revenues per ATKs was 17.3 cents in Q3 FY17 compared to 16.0 cents in Q3 FY16. Additionally, LATAM Airlines’ Cargo segment’s load factor was 54.2% for Q3 FY17 versus 49.6% in Q3 FY16.

Cash Matters and Balance Sheet

During the three quarters ended September 30, 2017, LATAM Airlines’ cash flow from operations was $967.46 million versus $617.88 million in the prior year’s corresponding quarter. The Company’s cash and cash equivalents balance as on September 30, 2017, stood at $939.85 million compared to $949.33 million as on December 31, 2016. Furthermore, the Company had a total net debt amounting $6.70 billion as on September 30, 2017, versus $7.12 billion as on December 31, 2016.

Earnings Guidance

In its outlook for the full fiscal year 2017, LATAM Airlines anticipates passenger ASK growth to be in the range of 1% to 2% y-o-y, while cargo ATK is expected to decline in the band of 12% to 10% y-o-y during FY17. Furthermore, the Company projects operating margin to be in the range of 6.0% to 8.0% for FY17.

Stock Performance Snapshot

December 28, 2017- At Thursday’s closing bell, LATAM Airlines Group’s stock marginally climbed 0.80%, ending the trading session at $13.93.
Volume traded for the day: 199.57 thousand shares.

Stock performance in the last month – up 2.96%; previous three-month period – up 5.53%; past twelve-month period – up 65.44%; and year-to-date – up 70.30%.

After yesterday’s close, LATAM Airlines Group’s market cap was at $8.43 billion.
Price to Earnings (P/E) ratio was at 57.09.
The stock has a dividend yield of 0.22%.
The stock is part of the Services sector, which was up 0.1% at the end of the session.

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