Why JetBlue Airways (JBLU) Stock Is Down Today
NEW YORK ( TheStreet) -- JetBlue Airways
Traffic in March increased 0.9% compared to March 2013, on a capacity increase of 3.9%. Load factor for the month was 84.8%, a 2.3 point decrease from the year-ago month. JetBlue said preliminary completion factor was 98% for the month, and its on-time performance was 77.2%.
Preliminary passenger revenue per available seat mile (PRASM) decreased 8% from the previous year. The lower PRASM was due to Easter and Passover shifting, both holidays occurred in March in 2013, but are in April in 2014.
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TheStreet Ratings team rates JETBLUE AIRWAYS CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate JETBLUE AIRWAYS CORP (JBLU) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, good cash flow from operations, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- JETBLUE AIRWAYS CORP has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, JETBLUE AIRWAYS CORP increased its bottom line by earning $0.51 versus $0.39 in the prior year. This year, the market expects an improvement in earnings ($0.70 versus $0.51).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Airlines industry. The net income increased by 4600.0% when compared to the same quarter one year prior, rising from $1.00 million to $47.00 million.
- JBLU's revenue growth trails the industry average of 26.7%. Since the same quarter one year prior, revenues rose by 14.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has increased to $193.00 million or 22.92% when compared to the same quarter last year. In addition, JETBLUE AIRWAYS CORP has also vastly surpassed the industry average cash flow growth rate of -73.48%.
- This stock has managed to rise its share value by 46.26% over the past twelve months. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: JBLU Ratings Report