Copa (NYSE:CPA) Releases Quarterly Earnings Results, Misses Expectations By $0.21 EPS

Key Points

• Copa reported quarterly EPS of $1.67, missing the $1.88 analyst consensus by $0.21, although revenue increased 25.7% year over year.
• Copa shares rose $3.89 to $150.54 during Wednesday trading. The company also pays a quarterly dividend of $1.71 per share, equivalent to a 4.5% annualized yield.
• Analysts remain bullish, with a consensus “Buy” rating and an average price target of $171.73, implying potential upside from the reported share price.

Copa (NYSE:CPA - Get Free Report) announced its earnings results on Wednesday. The transportation company reported $1.67 earnings per share for the quarter, missing analysts' consensus estimates of $1.88 by ($0.21), Zacks reports. Copa had a return on equity of 26.01% and a net margin of 18.76%.The firm's revenue for the quarter was up 25.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $3.61 EPS.

Copa Stock Performance

Shares of Copa stock traded up $3.89 during trading hours on Wednesday, hitting $150.54. 424,957 shares of the company's stock traded hands, compared to its average volume of 292,962. Copa has a 12-month low of $107.44 and a 12-month high of $160.46. The stock has a market capitalization of $6.19 billion, a price-to-earnings ratio of 8.78, a PEG ratio of 1.07 and a beta of 1.01. The company has a fifty day simple moving average of $144.56 and a 200-day simple moving average of $133.89. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.16 and a quick ratio of 1.06.

Copa Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Friday, May 29th were given a dividend of $1.71 per share. The ex-dividend date of this dividend was Friday, May 29th. This represents a $6.84 annualized dividend and a dividend yield of 4.5%. Copa's dividend payout ratio (DPR) is currently 39.88%.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the company. Jefferies Financial Group initiated coverage on Copa in a research report on Thursday, June 18th. They issued a "buy" rating and a $185.00 price objective for the company. Evercore reiterated an "outperform" rating and issued a $175.00 target price on shares of Copa in a report on Friday, May 15th. The Goldman Sachs Group increased their price target on Copa from $138.00 to $156.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Wall Street Zen upgraded shares of Copa from a "hold" rating to a "buy" rating in a research note on Saturday, May 16th. Finally, JPMorgan Chase & Co. increased their target price on shares of Copa from $165.00 to $170.00 and gave the stock an "overweight" rating in a research note on Wednesday, June 3rd. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, Copa presently has a consensus rating of "Buy" and an average price target of $171.73.

Hedge Funds Weigh In On Copa

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Virtu Financial LLC purchased a new stake in Copa during the fourth quarter worth about $417,000. Corient Private Wealth LLC increased its stake in shares of Copa by 23.6% during the 4th quarter. Corient Private Wealth LLC now owns 6,456 shares of the transportation company's stock worth $779,000 after purchasing an additional 1,232 shares during the last quarter. Mercer Global Advisors Inc. ADV bought a new stake in shares of Copa in the 4th quarter worth approximately $335,000. Empowered Funds LLC bought a new stake in shares of Copa in the 4th quarter worth approximately $29,000. Finally, XTX Topco Ltd purchased a new position in Copa in the fourth quarter valued at approximately $521,000. 70.09% of the stock is owned by hedge funds and other institutional investors.

About Copa

Copa Holdings, SA NYSE: CPA is a Panama‐based aviation holding company that provides passenger and cargo air transportation across the Americas and the Caribbean. Through its principal subsidiary, Copa Airlines, the company operates a modern fleet of Boeing 737 aircraft, offering scheduled flights that connect passengers through its Tocumen International Airport hub in Panama City. The company also offers dedicated cargo services under the Copa Cargo brand, leveraging belly hold capacity on its passenger flights to transport freight throughout its network.

The roots of Copa Holdings trace back to 1947, when Compañía Panameña de Aviación began operations as the flag carrier of Panama.

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