Air Canada (OTCMKTS:ACDVF) Releases Earnings Results, Beats Estimates By $0.18 EPS

Air Canada (OTCMKTS:ACDVF) posted its earnings results on Tuesday. The company reported $0.29 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.18, Zacks reports. The company had revenue of $4.41 billion during the quarter, compared to analysts’ expectations of $4.34 billion. Air Canada had a net margin of 3.45% and a return on equity of 27.71%.

Air Canada Trading Up 5.9%

Shares of ACDVF opened at $19.57 on Wednesday. The company’s fifty day moving average is $17.01 and its 200 day moving average is $15.07. Air Canada has a fifty-two week low of $12.03 and a fifty-two week high of $19.61. The stock has a market capitalization of $5.48 billion, a PE ratio of 10.58, a P/E/G ratio of 0.56 and a beta of 1.42. The company has a debt-to-equity ratio of 3.32, a quick ratio of 0.53 and a current ratio of 0.56.

Wall Street Analyst Weigh In

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

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 recovery prospects. Zacks.com
• Positive Sentiment: Air Canada agreed to sell a 25% non-controlling stake in Aeroplan to Blackstone, La Caisse and other Canadian institutions for C$2.5 billion, valuing the loyalty program at C$10 billion. The transaction provides substantial cash to strengthen the balance sheet and supports management’s goal of regaining an investment-grade credit rating, while Air Canada retains control of Aeroplan. Aeroplan Minority Equity Investment
• Neutral Sentiment: Second-quarter adjusted earnings were C$0.29 per share, well above the C$0.11 consensus estimate, while revenue also exceeded expectations. However, earnings declined from C$0.43 a year earlier, and the company reported a C$215 million operating loss that included C$388 million in labor-related and other charges. Adjusted EBITDA was C$719 million, at the high end of guidance. Air Canada Q2 Earnings
• Negative Sentiment: Air Canada cut its full-year earnings outlook after jet-fuel prices surged nearly 50% amid the Iran war. Higher fuel expenses could pressure margins and offset strong travel demand, making the guidance reduction the main risk to the stock’s recent strength. Air Canada Cuts Outlook

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.