• Mon. Nov 23rd, 2020

Pharma Oracle

Evolving Today for better Tomorrow

The right direction may change the future: Copa Holdings, S.A. (NYSE: CPA)

On 11 March 2020, Copa Holdings, S.A. (NYSE: CPA) spotted trading -45.34% off 52-week high price. On the other end, the stock has been noted -7.40% away from the low price over the last 52-weeks. The stock changed -11.41% to recent value of $63.89. The stock transacted 666274 shares during most recent day however it has an average volume of 376.61K shares. The company has 43.2M of outstanding shares and 31.33M shares were floated in the market.

Copa Holdings, S.A. (CPA) recently reported financial results for the fourth quarter of 2019 (4Q19) and full year 2019. The terms “Copa Holdings” and “the Company” refer to the consolidated entity.  The following financial information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS). See the accompanying reconciliation of non-IFRS financial information to IFRS financial information included in the financial tables section of this earnings release. Unless otherwise stated, all comparisons with previous periods refer to the fourth quarter of 2018 (4Q18).

OPERATING AND FINANCIAL HIGHLIGHTS

Copa Holdings stated a net profit of US$2.7M for 4Q19 or earnings per share (EPS) of US$0.06, as contrast to a net loss of US$155.8M or loss per share of US$3.67 in 4Q18. Not Including Special Items, which for 4Q19 included a non-cash fleet impairment charge of US$89.3M, and for 4Q18 included a non-cash fleet impairment charge of US$188.6M and a non-cash US$11.4M-dollar foreign currency translation loss (Special Items), the Company would have stated a net profit of US$92.1M, or adjusted EPS of US$2.17 in 4Q19, contrast to an adjusted net profit of US$44.1M or adjusted EPS of US$1.04 in 4Q18.

For full year 2019, net profit came in at US$247M or EPS of US$5.81, contrast to a net profit of US$88.1M or earnings per share of US$2.07 for full year 2018. Not Including Special Items, which for 2019 included a non-cash fleet impairment charge of US$89.3M, and for 2018 included a non-cash fleet impairment charge of US$188.6M and a non-cash US$11.4M-dollar foreign currency translation loss, Copa Holdings would have stated an adjusted net profit of US$336.3M or EPS of US$7.92 in 2019, contrast to an adjusted net profit of US$276.7M or adjusted EPS of US$6.52 in 2018.

In 4Q19, the Company had an operating profit of US$17.8M, contrast to an operating loss of US$126.4M in 4Q18. Not Including Special Items, namely the fleet impairment charges in 4Q19 and 4Q18, The Company would have stated an Operating profit of US$107.1M in 4Q19, contrast to an operating profit of US$62.2M in 4Q18. Not Including Special Items, operating margin for 4Q19 would have come in at 15.7%, contrast to 9.5% in 4Q18.

For full year 2019, the Company stated operating profit of US$346.2M. Not Including Special Items, the Company would have stated an operating profit of US$435.5M, representing a raise of 25.1% over adjusted operating profit of US$348.1M for full year 2018, mostly Because of stronger unit revenues and lower jet fuel prices. Not Including Special Items, operating margin for full year 2019 would have come in at 16.1%.

Total revenues for 4Q19 increased 3.9% to US$681.9M, despite a 4.6% capacity contraction. Yield per passenger mile increased 6.0% to 12.5 cents, and load factors improved 2.5 percentage points year over year to 85.3%. Revenue per accessible seat mile (RASM) came in at 11.1 cents, or 8.9% higher than 4Q18.

For full year 2019, consolidated load factor was 84.8%, 1.4 percentage points higher than 2018 on a 2.7% capacity reduction.

Operating cost per accessible seat mile (CASM), not including Special Items (Adjusted CASM) increased 1.4%, from 9.2 cents in 4Q18 to 9.3 cents in 4Q19. Adjusted CASM not including fuel costs increased 6.4% from 6.2 cents in 4Q18 to 6.6 cents in 4Q19, mainly as a result of lower capacity, as well as expenses, associated to the Boeing MAX fleet grounding.

Cash, short-term and long-term investments ended 2019 at US$985.5M, representing 36% of the last twelve months’ revenues.

Copa Holdings ended the year with a consolidated fleet of 102 aircraft – 6 Boeing 737MAX9s, 68 Boeing 737-800s, 14 Boeing 737-700s, and 14 Embraer 190s.

As was before stated, during the fourth quarter the Company reported its intention to sell its remaining 14 Embraer 190s over the next two years duly classifying these assets as accessible for sale. As such, a US$89.3M impairment charge was booked in 4Q19.

For 2019, Copa Airlines ended the year with a consolidated on-time performance of 91.9% and a flight-completion factor of 99.8%, maintaining its position among the best in the industry.

Its earnings per share (EPS) expected to touch remained 180.30% for this year while earning per share for the next 5-years is expected to reach at 13.65%. CPA has a gross margin of 62.90% and an operating margin of 12.80% while its profit margin remained 9.10% for the last 12 months.   According to the most recent quarter its current ratio was 1.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of -31.79% from the mean of 20 days, -35.76% from mean of 50 days SMA and performed -36.51% from mean of 200 days price. Company’s performance for the week was -24.74%, -39.66% for month and YTD performance remained -40.89%.

 

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