Continental Airlines (CAL) estimates are rising at a break-neck pace and shares just set a new multi-year high.
Company Description
Continental Airlines is one of the world’s largest airlines with more than 2,500 flights across North America, Europe and Asia on a daily basis. The Houston-based company has a market cap of more than $3 billion and is a Zacks #1 Rank stock.
Turning a Profit
Continental Airlines reported fourth-quarter results back in January and saw net income of $4 million, or 3 cents per share. This was well ahead of the expected 10 cent loss.
While overall revenue was down about 8%, the company is generating more revenue per mile.
Transition Completed
Continental Airlines just completed its transition to join Star Alliance during the last quarter. Management describes it as a “perfect fit” and said Continental’s customers are already seeing an improved experience.
Estimates Continue to Soar
Over the past 3 months the full-year Zacks Consensus Estimate for 2010 is up 98 cents, to $2.34. Next year’s projections are up 95 cents, to $2.51. Compare these levels to a loss of $2.29 loss last year.
The Chart
Shares of CAL broke through a point of resistance to set a new high. Since then the stock has tapered off a bit but looks to be using the previous high as support. Take a look below.
Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service Zacks Investment Research
