logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

AMR Corp Shares Fly Ahead 8 Percent on $289 Million in Third Quarter Profits

By  +Follow October 17, 2013 9:48AM
Share:
Tickers Mentioned:

AMR Corporation (AAMRQ) , the parent company of American Airlines, is seeing shares take flight on Thursday to two-month highs after posting its third-quarter earnings and getting an upgrade from JPMorgan (JPM) . American Airlines is the fourth largest U.S. air carrier.

For the quarter ended September 30, the Fort Worth, Texas-based airline operator reported revenue of $6.83 billion, an increase of 6 percent from $6.43 billion in the year prior quarter. That was the best quarter on record in the history of the company. On a GAAP-basis, net profit was $289 million, a huge swing from a net loss of $238 million in the same quarter of 2012. Excluding reorganization expenses and other one-time items, net profit was $530 million, compared to $110 million in Q3 2012.

The results are encouraging for AMR, posting its second straight quarterly profit and third in the last four quarters as it continues to rebuild after filing bankruptcy less than two years ago.  In the first nine months of 2013, the company has reported $167 million in profits.

The stock plunged as low as $0.20  in November 2011, but slowly regained traction, largely on the back of a planned merger with US Airways Group Inc. (LCC) .  That plan has been delayed since the Justice Department challenged the deal in August. The antitrust lawsuit is set for trial next month with most expecting a ruling in January 2014.

News of the Justice Department’s actions sent the stock price of AAMRQ down from around $6 to lows of $2.06, but the resilient stock has clawed its way back to regain most of the losses.

"Continued execution on our product, network and alliance strategy, combined with cost efficiencies from restructuring and fleet renewal, creates strong momentum towards our planned merger with US Airways. And we are especially pleased to set aside $59 million this quarter in expectation of making our first profit-sharing payout since 2001 to our people who have done so much to put American back on top," said Tom Horton, AMR's chairman, president and chief executive.

AMR ended the third quarter with approximately $7.7 billion in cash and short-term investments, including restricted cash, compared to a balance of approximately $5.1 billion at the end of the third quarter of 2012.

Meanwhile, JPMorgan boosted its rating on AMR Corp. to “overweight” from “neutral” because it sees an increased likelihood that the merger with US Air will happen. JPM analysts now give the deal a 60-percent chance of going through, up from the 50 percent it had previously forecast. JPMorgan’s Jamie Baker and Mark Streeter said they expect a verdict no later than January 18.

Shares of AAMRQ are up 8 percent in Thursday trading (1 PM ET) at $5.56.  Other airlines are climbing as well, with US Air up 1.5 percent, Southwest Airlines Co. (LUV) ahead 2.5 percent, United Continental Holdings (UAL) rising 1.7 percent and Delta Air Lines (DAL) advancing just under 1 percent. 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for AAMRQ
Stockaholics
31 Jan 15 08:59:14
Our Penny Stock Picks Gained an overall 160% This Week! New Picks Coming: http://t.co/LayPQuOeI4 $AAMRQ $SIMH $AASP
Stockaholics
30 Jan 15 21:00:20
Our Penny Stock Picks Gained an overall 160% This Week! New Picks Coming: http://t.co/LayPQuOeI4 $AAMRQ $SIMH $AASP
Stock Rocket
30 Jan 15 16:47:25
Our Penny Stock Picks Gained an overall 160% This Week! New Picks Coming: http://t.co/sVd7mrwWCj $AAMRQ $SIMH $AASP
Stock Rocket
30 Jan 15 08:31:55
After 140% Gains On Alerts In 4 Days, $ETBI Is Our New Penny Stock Pick! Check It Out: http://t.co/CCkNDZnoyc $AAMRQ $SIMH $AASP
StockNewsWires
30 Jan 15 08:26:06
$AAMRQ $LCC $AAL $BA $DAL: American Airlines Gets Post-Merger Boost as Pilots Back Contract: http://t.co/8J6tf3DDNQ
Stockaholics
30 Jan 15 03:21:24
Yesterday's's Mid-Day Penny Stock Pick On $ETBI gained 23.27% for us! Big News: http://t.co/HIV8wkY6AM $AAMRQ $SIMH $AASP
Stock Rocket
29 Jan 15 15:48:52
Today's Mid-Day Penny Stock Pick On $ETBI gained 23.27% for us! Big News: http://t.co/HCG2IUhNyd $AAMRQ $SIMH $AASP
Stock Rocket
29 Jan 15 11:54:26
Our Picks Gained 117% In 3 Days And We Just Released A New Mid-Day Pick On $ETBI! Big News: http://t.co/Ita48Yhgrr $AAMRQ $SIMH $AASP
Stockaholics
29 Jan 15 06:36:33
Our Penny Stock Picks On $IJJP $TUNG & $QLTS Gained 117% In 3 Days! New Pick Coming: http://t.co/c7bXDM1sfp $AAMRQ $SIMH $AASP
Stock Rocket
28 Jan 15 21:54:26
Our Penny Stock Picks On $IJJP $TUNG & $QLTS Gained 117% In 3 Days! New Pick Coming: http://t.co/zlcsLOoyXX $AAMRQ $SIMH $AASP
Stockaholics
28 Jan 15 15:57:35
Our Penny Stock Picks On $IJJP $TUNG & $QLTS Gained 117% In 3 Days! New Pick Coming: http://t.co/c7bXDM1sfp $AAMRQ $SIMH $AASP
Stock Rocket
28 Jan 15 14:01:20
Our Penny Stock Picks On $IJJP And $TUNG Gained A Combined 100% Mid-Day Today! Huge News: http://t.co/pFkAyf90sZ $AAMRQ $SIMH $AASP
Stockaholics
28 Jan 15 09:50:16
Our Penny Stock Alert On $QLTS Has Gained 34.62% In The Past 2 Days! Special Update: http://t.co/MNFk4FhSe1 $AAMRQ $SIMH $AASP
Stockaholics
28 Jan 15 05:46:08
Our Penny Stock Alert On $QLTS Has Gained 34.62% In The Past 2 Days! Special Update: http://t.co/MNFk4FhSe1 $AAMRQ $SIMH $AASP
Stock Rocket
27 Jan 15 23:01:29
Our Penny Stock Alert On $QLTS Has Gained 34.62% In The Past 2 Days! Special Update: http://t.co/SK1yaqFkM1 $AAMRQ $SIMH $AASP
Stock Rocket
27 Jan 15 18:45:40
Our Penny Stock Alert On $QLTS Has Gained 34.62% In The Past 2 Days! Special Update: http://t.co/SK1yaqFkM1 $AAMRQ $SIMH $AASP
Stockaholics
27 Jan 15 14:11:57
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/yQwzgQ7fmA $AAMRQ $SIMH $AASP
Stockaholics
27 Jan 15 10:34:09
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/yQwzgQ7fmA $AAMRQ $SIMH $AASP
Stock Rocket
27 Jan 15 06:43:51
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/wMEn6i1tkM $AAMRQ $SIMH $AASP
Stockaholics
26 Jan 15 22:30:58
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/yQwzgQ7fmA $AAMRQ $SIMH $AASP
Stock Rocket
26 Jan 15 14:50:22
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/wMEn6i1tkM $AAMRQ $SIMH $AASP
Stockaholics
25 Jan 15 10:49:55
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/yQwzgQ7fmA $AAMRQ $SIMH $AASP
Stockaholics
24 Jan 15 22:21:39
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/yQwzgQ7fmA $AAMRQ $SIMH $AASP
Stockaholics
24 Jan 15 18:10:11
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/yQwzgQ7fmA $AAMRQ $SIMH $AASP
Stockaholics
24 Jan 15 14:13:46
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/yQwzgQ7fmA $AAMRQ $SIMH $AASP
Stock Rocket
24 Jan 15 10:12:56
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/g5jpD7KSUX $AAMRQ $SIMH $AASP
Stock Rocket
24 Jan 15 05:49:39
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/wMEn6i1tkM $AAMRQ $SIMH $AASP
Stock Rocket
24 Jan 15 01:21:53
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/wMEn6i1tkM $AAMRQ $SIMH $AASP
				
				
By  +Follow October 17, 2013 9:48AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.