Homebuilders, Airlines, and GM: Here’s How These Five Stocks Performed During Their Latest Quarters

Alaska Air Earnings Ahead of Expectations

Traders are watching Alaska Air Group, Inc. (NYSE:ALK) today after the airline reported second quarter EPS of $2.12 on sales of $1.49 billion, beating profit estimates by $0.03 per share but missing the top-line consensus by $10 million. Passenger revenue rose by 3% year-over-year and the company expanded its adjusted pre-tax margins to 28.4% from 25.7% in the second quarter of 2015. Second quarter PRASM fell by 7.7% to $0.1142 while load factor came in at 84.9%. For the first six months of 2016, Alaska Air generated $560 million in free cash flow and $900 million in operating cash flow. 33 funds in our system owned shares of Alaska Air Group, Inc. (NYSE:ALK) at the end of March.

GM Surges on Results

General Motors Company (NYSE:GM) shares are 4% higher in morning trading after the vehicle manufacturer delivered a strong second quarter. For the three months ended June 30, the company earned $1.86 per share on sales of $42.4 billion, beating the consensus marks by $0.35 and $3.47 billion respectively. Sales rose by 11.1% year-over-year, while operating margin came in at a record 9.3%. Guidance was also strong, as GM expects full year EPS of $5.50-to-$6.00 versus the previous range of $5.25-to-$5.75. Analysts were expecting just $5.63 per share. Of the 766 active funds that we track, 67 of them owned $3.72 billion worth of General Motors Company (NYSE:GM) shares on March 31, which accounted for 7.60% of the stock’s float.

Southwest Misses, Stock Drops

Southwest Airlines Co (NYSE:LUV) shares are down by 6% today after the airline missed both top and bottom-line estimates. For the second quarter, Southwest earned $1.19 per share on revenue of $5.38 billion, missing the consensus estimates by $0.02 per share and $30 million, respectively. PRASM retreated by 3.5% year-over-year while load factor inched up to 85.6%, one percentage point higher than a year ago. Guidance was disappointing, with the airline expecting unit revenue to drop by another 3%-to-4% for the third quarter. Meanwhile GAAP unit costs might increase by 2% during the same time period, mainly due to various accounting depreciation expenses. The number of elite funds in our system with holdings in Southwest Airlines Co (NYSE:LUV) rose by six quarter-over-quarter to 58 as of the end of March.

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