- Deutsche Bank analyst Michael Linenberg downgraded Mesa Air Group Inc MESA to Hold from Buy and lowered the price target to $7 (an upside of 20.7%), from $15.
- Linenberg says the company faces higher than average cost pressures in two areas for at least the next two quarters: training/staffing due to increased turnover and elevated maintenance expense primarily due to more expensive spare part support driven by supply chain constraints.
- As a result, he now expects Mesa to post quarterly losses for the next two quarters.
- Raymond James analyst Savanthi Syth maintained an Outperform ratings on the shares and lowered the price target to $12.5 (an upside of 115.5%) from $13.
- Recently, Mesa Air Group reported a Q4 net loss of $(7.5) million, or $(0.21) per share, compared to a net income of $11.4 million a year ago.
- Q4 Revenue was $130.8 million (+21.1% year-over-year), reflecting an increase in block hour volumes for its major partners.
- Operating income was $5.09 million (-78.7% Y/Y), and margin stood at 3.9% compared to 22.1% a year ago.
- Adjusted EBITDA was $25.8 million, compared to $44.6 million in Q4 2020.
- Q4 Block Hours were 94,868 (+64.6% Y/Y), Available Seat Miles increased 62.2% Y/Y, Passengers +97.4% Y/Y, and Total Completion Factor American 97.34% and United 98.06%.
- Mesa ended the quarter at $120.5 million in unrestricted cash and equivalents and had $670.3 million in total debt secured primarily with aircraft and engines.
- Mesa reported a total completion factor of 97.3% for American and 98.1% for United during 4Q21.
- Price Action: MESA shares are trading lower by 17.9% at $5.82 during the market session on Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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