Air France-KLM (OTCMKTS:AFLYY) Shares Gap Down - Here's What Happened

Key Points

• Air France-KLM shares gapped down, opening at $1.14 after a $1.21 close and last trading around $1.13, down about 1.6% on light volume.
• Analyst opinions are mixed—RBC initiated coverage with a "hold", Zacks cut to "hold", Barclays and Oddo Bhf upgraded, and the MarketBeat consensus remains a "Hold" (2 Buys, 6 Holds).
• The company beat quarterly estimates with EPS of $0.23 vs. $0.04 and revenue of $9.53B vs. $9.43B, but shows high leverage (debt/equity ~5.39) and modest liquidity while trading at a low P/E (~1.68).

Shares of Air France-KLM SA (OTCMKTS:AFLYY - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $1.21, but opened at $1.14. Air France-KLM shares last traded at $1.1290, with a volume of 1,195 shares traded.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on AFLYY. Royal Bank Of Canada assumed coverage on shares of Air France-KLM in a research note on Tuesday, January 20th. They issued a "hold" rating for the company. Zacks Research lowered Air France-KLM from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Citigroup reaffirmed a "neutral" rating on shares of Air France-KLM in a research note on Friday, February 20th. Barclays raised shares of Air France-KLM from an "underweight" rating to an "equal weight" rating in a report on Monday, March 9th. Finally, Oddo Bhf upgraded shares of Air France-KLM from a "neutral" rating to an "outperform" rating in a research report on Friday, February 6th. Two analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Air France-KLM has an average rating of "Hold".

Air France-KLM Trading Down 1.6%

The business's fifty day moving average is $1.20 and its 200-day moving average is $1.24. The company has a debt-to-equity ratio of 5.39, a quick ratio of 0.56 and a current ratio of 0.62. The firm has a market cap of $2.92 billion, a P/E ratio of 1.68, a price-to-earnings-growth ratio of 0.18 and a beta of 1.36.

Air France-KLM (OTCMKTS:AFLYY - Get Free Report) last announced its quarterly earnings results on Thursday, February 19th. The transportation company reported $0.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.04 by $0.19. Air France-KLM had a net margin of 5.00% and a return on equity of 100.70%. The firm had revenue of $9.53 billion during the quarter, compared to analysts' expectations of $9.43 billion. Analysts predict that Air France-KLM SA will post 0.46 EPS for the current year.

About Air France-KLM

Air France-KLM is a leading European airline group formed in 2004 through the merger of France's flagship carrier Air France and the Netherlands' national airline KLM Royal Dutch Airlines. Headquartered in Paris and Amstelveen, the group provides passenger, cargo and maintenance services across a global network, connecting major hubs in Europe, North America, Asia, Africa and Latin America.

The company's primary business activities include scheduled passenger transport on short, medium and long-haul routes; air freight operations under Air France-KLM Cargo; and technical support and maintenance services through AFI KLM E&M.

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