Republic boosted ahead of 3Q results; LAN reports 103.9% rise in net profit

Republic Airways (+2.5%) rose on Tuesday (26-Oct-2010) ahead of reporting its 3Q2010 financial results on 03-Nov-2010. During trading, Dahlman Rose & Co analysts expected the carrier to report earnings per share (EPS) of USD0.68, compared with USD0.09 in the previous corresponding period.

The analysts stated they based the forecast on the carrier’s growth. The estimate is higher than the consensus estimate of USD0.62.

Dahlman Rose & Co also raised its price target for Republic from USD8.00 to USD12.25, 11 times its 2011 EPS of USD1.12 for the carrier.

According to SmarTrend, Republic is now trading above its 50-day moving average of USD7.68 and 200-day moving average of USD6.36. Republic ended trading at USD9.36.

LAN slips

LAN Airlines (-0.1%) slipped despite reporting a 103.9% year-on-year rise in net profit to USD106.2 million, for the three months ended 30-Sep-2010. The result was on a 25.6% increase in revenues for the quarter to USD1152 million. This included a 19.7% improvement in passenger revenue and 49.4% improvement in cargo revenue. Operating profit was also up for the period, up 69.5%, to USD156.6 million.

The expansion of LAN’s passenger operations during 3Q2010 were driven by the launch of various regional and long-haul routes. LAN and its affiliates successfully started operating the following routes: Lima-San Francisco, Santiago-Paris via Madrid, Lima-Brasilia and Guayaquil-Galapagos.

See related CAPA Profile: Financial Results

Elsewhere, American Airlines (+2.8%) made the biggest gain of the day, with United Continental Holdings (+2.6%) also gaining. Delta Air Lines (-1.0%) and AirTran Airways (-0.7%) fell marginally lower for the day.

North & South America selected airlines daily share price movements (% change): 26-Oct-2010