Scotiabank Has Negative View of Air Canada FY2026 Earnings

Key Points

• Scotiabank sharply cut its FY2026 EPS forecast for Air Canada to $0.14 from $0.57, below the $0.30 analyst consensus, while projecting $0.34 EPS for FY2027. The bank nevertheless maintained its Outperform rating.
• Air Canada beat quarterly expectations, reporting EPS of $0.54 versus $0.38 expected and revenue of $4.90 billion versus $4.82 billion forecast.
• Analyst views are mixed, but MarketBeat’s overall rating is Moderate Buy: six analysts rate the stock Buy, three Hold, one Sell, and one Strong Buy.

Air Canada (OTCMKTS:ACDVF - Free Report) - Stock analysts at Scotiabank dropped their FY2026 EPS estimates for Air Canada in a research report issued on Monday, November 2nd. Scotiabank analyst K. Gupta now forecasts that the company will post earnings per share of $0.14 for the year, down from their previous estimate of $0.57. Scotiabank currently has an "Outperform" rating on the stock. The consensus estimate for Air Canada's current full-year earnings is $0.30 per share. Scotiabank also issued estimates for Air Canada's FY2027 earnings at $0.34 EPS.

ACDVF has been the subject of several other reports. Canadian Imperial Bank of Commerce reiterated an "outperform" rating on shares of Air Canada in a research note on Friday, August 14th. Royal Bank Of Canada reissued an "outperform" rating on shares of Air Canada in a report on Thursday, August 13th. Jefferies Financial Group cut Air Canada from a "hold" rating to an "underperform" rating in a research note on Monday, October 19th. Canaccord Genuity Group raised Air Canada from a "hold" rating to a "strong-buy" rating in a report on Thursday, October 22nd. Finally, National Bank Financial reaffirmed an "outperform" rating on shares of Air Canada in a research report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy".

Air Canada Stock Performance

Shares of ACDVF stock opened at $15.54 on Friday. The company has a fifty day moving average price of $17.93 and a two-hundred day moving average price of $16.11. Air Canada has a one year low of $12.03 and a one year high of $22.52. The stock has a market cap of $3.93 billion, a P/E ratio of 12.79, a P/E/G ratio of 4.75 and a beta of 1.54. The company has a debt-to-equity ratio of 3.52, a current ratio of 0.60 and a quick ratio of 0.56.

Air Canada (OTCMKTS:ACDVF - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The company reported $0.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.38 by $0.16. The firm had revenue of $4.90 billion for the quarter, compared to analyst estimates of $4.82 billion. Air Canada had a net margin of 1.22% and a return on equity of 18.75%.

Air Canada Company Profile

Air Canada is Canada's flag carrier and the country's largest airline. The company provides scheduled passenger air transportation to destinations across Canada, the United States and international markets. Its network serves major regions in Europe, Asia-Pacific, Latin America, the Caribbean and other global destinations.

In addition to its mainline operations, Air Canada operates Air Canada Rouge, a leisure-focused carrier, and Air Canada Cargo, which provides air freight services. The company also offers vacation packages through Air Canada Vacations and operates Aeroplan, its travel loyalty program.

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