Copa Holdings Increases Sales but Misses Estimates on Earnings

Copa Holdings (NYSE: CPA  ) reported earnings Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Copa Holdings beat slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted.

Gross margins expanded, operating margins shrank, net margins shrank.

Revenue details
Copa Holdings chalked up revenue of $504.6 million. The 11 analysts polled by S&P Capital IQ wanted to see sales of $494.8 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $414.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $1.93. The 12 earnings estimates compiled by S&P Capital IQ anticipated $1.95 per share on the same basis. GAAP EPS of $2.36 for Q4 were 15% lower than the prior-year quarter's $2.77 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 43.6%, 360 basis points better than the prior-year quarter. Operating margin was 21.0%, 690 basis points worse than the prior-year quarter. Net margin was 20.7%, 870 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $506.0 million. On the bottom line, the average EPS! estimat e is $1.97.

Next year's average estimate for revenue is $2.12 billion. The average EPS estimate is $7.50.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 147 members out of 170 rating the stock outperform, and 23 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Copa Holdings a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Copa Holdings is outperform, with an average price target of $84.62.

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