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

Key Points

• Air France-KLM shares opened higher, rising from a previous close of $1.25 to $1.32 before trading at $1.29 on 311 shares of volume.
• Analyst sentiment remains mixed but generally cautious: three analysts rate the stock a Buy and six rate it a Hold, resulting in an overall “Hold” consensus.
• The airline exceeded quarterly expectations, reporting $0.07 in earnings per share versus a $0.05 estimate and $10.67 billion in revenue versus $10.51 billion expected. However, its balance sheet shows elevated leverage, with a debt-to-equity ratio of 4.83 and a current ratio of 0.67.

Shares of Air France-KLM SA (OTCMKTS:AFLYY - Get Free Report) gapped up before the market opened on Monday. The stock had previously closed at $1.25, but opened at $1.32. Air France-KLM shares last traded at $1.29, with a volume of 311 shares traded.

Wall Street Analyst Weigh In

Several research firms recently issued reports on AFLYY. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of Air France-KLM in a report on Wednesday, August 5th. Morgan Stanley restated an "overweight" rating on shares of Air France-KLM in a research note on Wednesday, July 8th. Kepler Capital Markets upgraded Air France-KLM from a "reduce" rating to a "hold" rating in a research note on Tuesday, August 25th. Citigroup reissued a "neutral" rating on shares of Air France-KLM in a report on Monday, August 3rd. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of Air France-KLM in a report on Monday, June 22nd. Three equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold".

Air France-KLM Price Performance

The company's fifty day moving average price is $1.33 and its 200 day moving average price is $1.27. The company has a debt-to-equity ratio of 4.83, a quick ratio of 0.61 and a current ratio of 0.67. The firm has a market capitalization of $3.39 billion, a price-to-earnings ratio of 2.74 and a beta of 1.39.

Air France-KLM (OTCMKTS:AFLYY - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The transportation company reported $0.07 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.02. Air France-KLM had a net margin of 3.35% and a return on equity of 44.05%. The firm had revenue of $10.67 billion for the quarter, compared to analyst estimates of $10.51 billion. Equities research analysts expect that Air France-KLM SA will post 0.44 earnings per share for the current year.

About Air France-KLM

Air France-KLM is a European airline group formed in 2004 through the merger of Air France and KLM Royal Dutch Airlines. The group operates passenger and cargo air transportation through its principal airline brands, Air France and KLM, along with low-cost carrier Transavia. Its airlines serve domestic, European and long-haul international routes linking Europe with destinations across North America, Latin America, Asia, Africa and the Middle East.

Air France is based in France and operates major hubs at Paris-Charles de Gaulle and Paris-Orly airports, while KLM is headquartered in the Netherlands and uses Amsterdam Airport Schiphol as its primary hub.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.