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

Key Points

• Air France-KLM shares fell 5.3% at the open, dropping from $1.32 to $1.25, though trading volume was very light at 526 shares.
• Analyst sentiment remains mixed but leans neutral: three analysts rate the stock Buy, five Hold, and one Sell, resulting in a consensus “Hold” rating.
• The company exceeded quarterly expectations, reporting $0.07 EPS versus $0.05 expected and revenue of $10.67 billion versus a $10.51 billion consensus estimate; analysts expect $0.44 EPS for the full fiscal year.

Air France-KLM SA (OTCMKTS:AFLYY - Get Free Report) shares gapped down before the market opened on Friday . The stock had previously closed at $1.32, but opened at $1.25. Air France-KLM shares last traded at $1.25, with a volume of 526 shares traded.

Analyst Upgrades and Downgrades

AFLYY has been the subject of a number of recent research reports. Deutsche Bank Aktiengesellschaft reissued a "hold" rating on shares of Air France-KLM in a research report on Monday, June 22nd. Morgan Stanley reissued an "overweight" rating on shares of Air France-KLM in a report on Wednesday, July 8th. Kepler Capital Markets lowered shares of Air France-KLM from a "hold" rating to a "reduce" rating in a research report on Friday, July 17th. Citigroup reiterated a "neutral" rating on shares of Air France-KLM in a research report on Monday, August 3rd. Finally, Royal Bank Of Canada reiterated a "sector perform" rating on shares of Air France-KLM in a research note on Wednesday, August 5th. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold".

Air France-KLM Stock Performance

The stock has a 50 day moving average of $1.40 and a 200 day moving average of $1.27. The company has a quick ratio of 0.66, a current ratio of 0.72 and a debt-to-equity ratio of 4.26. The firm has a market cap of $3.36 billion, a price-to-earnings ratio of 2.72 and a beta of 1.40.

Air France-KLM (OTCMKTS:AFLYY - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The transportation company reported $0.07 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.05 by $0.02. The firm had revenue of $10.67 billion for the quarter, compared to the consensus estimate of $10.51 billion. Air France-KLM had a net margin of 3.35% and a return on equity of 45.11%. As a group, analysts anticipate that Air France-KLM SA will post 0.44 EPS for the current fiscal 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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