Mesa Air's Bumpy Ride To Normalize By 2025 Despite Q2 Turbulence, Analyst Sees Clear Skies Ahead

Raymond James analyst Savanthi Syth upgraded Mesa Air Group Inc MESA to Market Perform from Underperform.
The analyst believes pilot attrition is improving and is below the pandemic level, and a near-term attrition rate hike is unlikely amid new regional pay rates.
Syth expects the pilots shortage problem will be solved in the next 12-18 months and expects it to normalize by 2025. The analyst expects the company to reach quarterly EPS of around $0.20 by Q4 of FY 2025.
However, the analyst is not impressed with the disappointing Q2 FY 2023 results this week.
Revenues of $121.8 million missed the consensus of $138.7 million, while adjusted EPS of ($0.53) missed the consensus of ($0.27).
Syth expects revenues and adjusted EPS of $552 million and $(0.93) in FY 2023, respectively. The analyst projects revenues of $664 million and adjusted EPS of $0.27 in FY2024.
Price Action: MESA shares are trading higher by 4.23% at $1.48 on the last check Friday.

Analyst Calendar