Alaska Air (NYSE: ALK) recently reported its Q3 results, with revenues and earnings falling below the street estimates. The company reported revenue of $2.8 billion, reflecting no growth from the prior year period and below the $2.9 billion street estimate. Its adjusted earnings of $1.83 per share were down 28% y-o-y and below the consensus estimate of $1.86 per share. In this note, we discuss Alaska Air’s stock performance, key takeaways from its recent results, and valuation.
ALK stock has suffered a sharp decline of 40% from levels of $50 in early January 2021 to around $30 now, vs. an increase of about 15% for the S&P 500 over this roughly 3-year period. ALK has had a poor run, with the stock losing value in each of the last three years. Returns for the stock were 0% in 2021, -18% in 2022, and -24% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 12% in 2023 – indicating that ALK underperformed the S&P in 2021 and 2023.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.