Air Canada (OTCMKTS:ACDVF) Trading Up 14% After Better-Than-Expected Earnings

Air Canada (OTCMKTS:ACDVF) shares were up 14% on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $22.43 and last traded at $22.31. 38,239 shares traded hands during trading, a decline of 77% from the average daily volume of 168,488 shares. The stock had previously closed at $19.57.

The company reported $0.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.18. Air Canada had a net margin of 3.45% and a return on equity of 27.71%. The firm had revenue of $4.41 billion for the quarter, compared to analyst estimates of $4.34 billion.

More Air Canada News

Here are the key news stories impacting Air Canada this week:

• Positive Sentiment: Scotiabank upgraded Air Canada from “hold” to “strong buy,” signaling increased confidence in the airline’s valuation and earnings prospects. Zacks.com
• Positive Sentiment: Air Canada will raise C$2.5 billion by selling a 25% minority stake in Aeroplan to Blackstone, La Caisse and other Canadian institutions. The transaction values Aeroplan at C$10 billion, while Air Canada retains control of the loyalty program. Proceeds should strengthen the balance sheet and support the company’s effort to regain an investment-grade credit rating. Aeroplan investment announcement
• Positive Sentiment: Second-quarter adjusted earnings beat expectations: Air Canada reported earnings of $0.29 per share versus the $0.11 consensus estimate, while revenue of $4.41 billion exceeded the $4.34 billion forecast. Record operating revenue and adjusted EBITDA of $719 million also reflected strong travel demand. Air Canada Q2 earnings report
• Neutral Sentiment: The earnings beat was tempered by lower EPS than the $0.43 reported a year earlier and an operating loss that included $388 million in labor-related and other charges. These items may limit the immediate benefit of the strong operating performance. Air Canada second-quarter results
• Negative Sentiment: Air Canada reduced its full-year earnings outlook after jet-fuel costs surged nearly 50% amid geopolitical tensions. Higher fuel expense could pressure margins and offset some of the benefits from strong demand and the Aeroplan proceeds. Air Canada cuts outlook

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. National Bank Financial raised shares of Air Canada from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 7th. BMO Capital Markets reiterated an “outperform” rating on shares of Air Canada in a research note on Wednesday, July 8th. Scotiabank raised Air Canada from a “hold” rating to a “strong-buy” rating in a report on Tuesday. Finally, Zacks Research upgraded Air Canada from a “strong sell” rating to a “hold” rating in a research report on Tuesday, May 19th. Two research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, Air Canada currently has an average rating of “Moderate Buy”.

Air Canada Stock Up 13.7%

The stock has a market capitalization of $6.23 billion, a P/E ratio of 12.03, a P/E/G ratio of 0.56 and a beta of 1.42. The company has a current ratio of 0.56, a quick ratio of 0.53 and a debt-to-equity ratio of 3.32. The firm’s fifty day moving average is $17.01 and its 200-day moving average is $15.07.

About Air Canada

Air Canada is the largest airline in Canada and one of the leading carriers in North America. Founded in 1937 as Trans-Canada Air Lines and rebranded as Air Canada in 1965, the company operates scheduled passenger and cargo services on six continents. The airline maintains membership in the Star Alliance network, offering seamless connections and coordinated loyalty benefits to travelers worldwide.

Through its mainline operations and subsidiaries—including Air Canada Rouge, Air Canada Cargo and Air Canada Vacations—the company provides a broad range of services.