American Airlines Group's Earnings Outlook

American Airlines Group AAL releases its next round of earnings this Thursday, July 22. Here is Benzinga's essential guide to American Airlines Group's Q2 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on American Airlines Group management projections, analysts predict EPS of $2.41 on revenue of $7.14 billion. American Airlines Group reported a loss of $7.82 when it published results during the same quarter last year. Sales in that period totaled $1.62 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 69.18% increase in the company's EPS figure. Sales would be have grown 340.2% from the same quarter last year. Here is how the American Airlines Group's reported EPS has stacked up against analyst estimates in the past:

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Over the last 52-week period, shares are up 79.48%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. American Airlines Group is scheduled to hold the call at 08:30:00 ET and can be accessed here.