American Airlines Group Inc, AbbVie Inc Beat On Earnings, Miss On Revenue

American Airlines and AbbVie released their latest earnings reports before opening bell this morning. AbbVie reported adjusted earnings of $1.28 per share on $6.5 billion in revenue, compared to the Wall Street estimates of $1.26 per share and $6.5 billion in revenue. In last year’s first quarter, the drug maker reported $6 billion and $1.15 per share.

American Airlines reported adjusted earnings of 61 cents per share on $9.62 billion in revenue, compared to the analyst estimates of 57 cents per share and $9.62 billion. In last year’s first quarter, the airline reported $9.44 billion in revenue.

American Airlines’ profits fall

American Airlines’ GAAP earnings per share fell to 46 cents from $1.14 per share a year ago. Mainline passenger revenue rose to $6.6 billion from $6.56 billion last year, compared to the consensus of $6.54 billion. Revenue per available seat mile increased 3.1%, while total available seat miles fell 1.1% year over year. Fuel expenses skyrocketed by 37.8% year over year.

Warren Buffett’s 2018 Activist Investment

Berkshire Hathaway Warren BuffettMost investors are aware of Warren Buffett's most high profile long-term investments. However, there is one long term investment that is often overlooked. Q2 2020 hedge fund letters, conferences and more This is building materials maker USG, which was owned by Berkshire Hathaway for more than 17 years before it was acquired in 2018. If Read More

American Airlines continues to expand its Basic Economy and Premium Economy fare options and describes early results for both as “encouraging.” The airline returned $563 million to shareholders though stock buybacks and dividends during the first quarter. It plans to invest $4.1 billion in new aircraft this year. For the second quarter, American Airlines expects total revenue per available seat mile to increase by 3% to 5%.

Shares of American Airlines slumped in premarket trading, falling by as much as 3.45% to $44.80.

AbbVie’s earnings rise

AbbVie’s GAAP earnings per share rose to $1.06 per share from 83 cents per share last year. Global Humira sales rose 15.1% on a reported basis, while Imbruvica sales amounted to $551 million, a 44.7% increase as reported. Viekira sales fell 36.3%, while Duodopa sales grew 17%.

AbbVie still expects full-year adjusted earnings to be between $5.44 and $5.54 per share and GAAP earnings to be between $4.55 and $4.65 per share.

Shares of AbbVie were unchanged at $65.04 in premarket trading this morning.