American Airways (AAL – Free Report) got here out with a quarterly lack of $7.82 per share versus the Zacks Consensus Estimate of a lack of $6.75. This compares to earnings of $1.82 per share a yr in the past. These figures are adjusted for non-recurring gadgets.This quarterly report represents an earnings shock of -15.85%. 1 / 4 in the past, it was anticipated that this world’s largest airline would publish a lack of $2.16 per share when it truly produced a lack of $2.65, delivering a shock of -22.69%.During the last 4 quarters, the corporate has surpassed consensus EPS estimates simply as soon as.American Airways, which belongs to the Zacks Transportation – Airline business, posted revenues of $1.62 billion for the quarter ended June 2020, surpassing the Zacks Consensus Estimate by 9.51%. This compares to year-ago revenues of $11.96 billion. The corporate has topped consensus income estimates two occasions during the last 4 quarters.The sustainability of the stock’s quick price motion based mostly on the recently-released numbers and future earnings expectations will principally rely upon administration’s commentary on the earnings name.American Airways shares have misplaced about 60.4% for the reason that starting of the yr versus the S&P 500’s achieve of 1.4%.What’s Subsequent for American Airways?Whereas American Airways has underperformed the market to this point this yr, the query that involves traders’ minds is: what’s subsequent for the stock?There are not any simple solutions to this key query, however one dependable measure that may assist traders deal with that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified currently.Empirical analysis exhibits a robust correlation between near-term stock actions and traits in earnings estimate revisions. Traders can observe such revisions by themselves or depend on a tried-and-tested ranking instrument just like the Zacks Rank, which has a formidable observe file of harnessing the ability of earnings estimate revisions.Forward of this earnings launch, the estimate revisions development for American Airways was blended. Whereas the magnitude and route of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the stock. So, the shares are anticipated to carry out in keeping with the market within the close to future. You may see the entire listing of at this time’s Zacks #1 Rank (Robust Purchase) stocks right here.Will probably be attention-grabbing to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is -$3.89 on $4.08 billion in revenues for the approaching quarter and -$14.09 on $20.38 billion in revenues for the present fiscal yr.Traders must be aware of the truth that the outlook for the business can have a fabric impression on the efficiency of the stock as effectively. By way of the Zacks Trade Rank, Transportation – Airline is at the moment within the backside 14% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.