JetBlue Airways (NASDAQ:JBLU) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• JetBlue beat quarterly expectations: The airline reported an adjusted loss of $0.66 per share, $0.03 better than analysts’ forecast, while revenue reached $2.70 billion versus the $2.69 billion consensus.
• Shares rose 3.0%: JBLU opened at $5.43, with a market capitalization of approximately $2.02 billion. Despite the earnings beat, JetBlue remained unprofitable, reporting a negative net margin of 7.78% and negative return on equity of 32.76%.
• Analyst sentiment remains cautious: The stock has a consensus “Reduce” rating and an average price target of $5.31, while institutional investors own 83.71% of the company. Two directors also recently sold substantial portions of their holdings.

JetBlue Airways (NASDAQ:JBLU - Get Free Report) released its earnings results on Tuesday. The transportation company reported ($0.66) earnings per share for the quarter, beating the consensus estimate of ($0.69) by $0.03, FiscalAI reports. The business had revenue of $2.70 billion during the quarter, compared to analysts' expectations of $2.69 billion. JetBlue Airways had a negative net margin of 7.78% and a negative return on equity of 32.76%. During the same period last year, the business earned ($0.21) earnings per share.

JetBlue Airways Trading Up 3.0%

JBLU stock opened at $5.43 on Tuesday. The company's 50-day simple moving average is $5.36 and its 200 day simple moving average is $5.17. JetBlue Airways has a 52 week low of $3.87 and a 52 week high of $6.50. The company has a market capitalization of $2.02 billion, a PE ratio of -2.80 and a beta of 1.73. The company has a debt-to-equity ratio of 4.25, a quick ratio of 0.64 and a current ratio of 0.70.

Insider Buying and Selling

In other news, Director Thomas Winkelmann sold 35,473 shares of the company's stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $4.70, for a total transaction of $166,723.10. Following the completion of the sale, the director owned 13,379 shares of the company's stock, valued at approximately $62,881.30. This represents a 72.61% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Vivek Sharma sold 32,000 shares of the company's stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $5.41, for a total value of $173,120.00. Following the sale, the director owned 35,479 shares of the company's stock, valued at $191,941.39. The trade was a 47.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 2.41% of the company's stock.

Institutional Trading of JetBlue Airways

A number of hedge funds have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. grew its holdings in JetBlue Airways by 85.6% during the 4th quarter. Goldman Sachs Group Inc. now owns 12,124,292 shares of the transportation company's stock worth $55,166,000 after acquiring an additional 5,591,470 shares during the last quarter. Deutsche Bank AG grew its position in shares of JetBlue Airways by 1,157.9% during the 4th quarter. Deutsche Bank AG now owns 3,356,021 shares of the transportation company's stock worth $15,270,000 after buying an additional 3,089,226 shares during the period. Par Capital Management Inc. increased its position in JetBlue Airways by 105.3% in the 2nd quarter. Par Capital Management Inc. now owns 5,487,425 shares of the transportation company's stock valued at $23,212,000 after buying an additional 2,814,870 shares in the last quarter. Tudor Investment Corp ET AL bought a new stake in JetBlue Airways during the 4th quarter valued at $8,795,000. Finally, Prentice Capital Management LP increased its holdings in JetBlue Airways by 210.4% during the 3rd quarter. Prentice Capital Management LP now owns 2,276,428 shares of the transportation company's stock worth $11,200,000 after purchasing an additional 1,542,959 shares in the last quarter. Institutional investors and hedge funds own 83.71% of the company's stock.

Analysts Set New Price Targets

A number of analysts have commented on JBLU shares. Bank of America increased their price target on shares of JetBlue Airways from $3.50 to $4.00 and gave the company an "underperform" rating in a research note on Wednesday, July 1st. Raymond James Financial restated an "underperform" rating on shares of JetBlue Airways in a research note on Monday, July 6th. UBS Group lifted their target price on JetBlue Airways from $4.00 to $4.50 and gave the stock a "sell" rating in a research note on Tuesday, June 23rd. Seaport Research Partners raised JetBlue Airways from a "neutral" rating to a "buy" rating and set a $8.00 target price on the stock in a report on Thursday, April 16th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of JetBlue Airways in a report on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Hold rating and six have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average price target of $5.31.

About JetBlue Airways

JetBlue Airways Corporation is a low-cost scheduled passenger airline headquartered in Long Island City, New York. Since commencing service in 2000, the carrier has built a reputation for combining competitive fares with enhanced onboard amenities, including free in-flight entertainment, complimentary snacks and beverages, and onboard Wi-Fi. JetBlue operates a single fleet type of Airbus A320 family and Embraer 190 aircraft, which supports its focus on efficiency and operational consistency.

The airline's core offerings include economy-class travel and a premium business-class product known as Mint, which features lie-flat seats, curated culinary options and elevated service on select transcontinental and international routes.

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