Air Canada, trading under the symbol ACDVF on the PNK exchange, is a major player in the airline industry. The company released its quarterly earnings on February 14, 2025. Air Canada competes in the Zacks Transportation - Airline industry, where its financial performance is closely watched.
In its recent fourth-quarter earnings report, Air Canada achieved an EPS of $0.18, aligning with the Zacks Consensus Estimate. This is a significant improvement from the previous year's loss of $0.08 per share. The company has a history of surpassing consensus EPS estimates, having done so twice in the past four quarters. This consistency in meeting or exceeding expectations is crucial for investor confidence.
Air Canada's revenue for the quarter ending December 2024 was $3.81 billion, surpassing the Zacks Consensus Estimate by 7.37%. This figure is slightly higher than the $3.64 billion reported in the same period the previous year. However, the company has only exceeded consensus revenue estimates once in the last four quarters, indicating some variability in revenue performance. The airline reported record operating revenues of $3.81 billion for the fourth quarter of 2024, marking a 4.67% increase compared to the previous year.
Air Canada's financial metrics reveal a mixed picture. The company has a low price-to-earnings (P/E) ratio of approximately 3.62, indicating a relatively low valuation compared to its earnings. However, the debt-to-equity ratio is high at about 5.31, suggesting a significant reliance on debt financing. Additionally, the current ratio of approximately 0.79 points to potential liquidity challenges in meeting short-term obligations.
