Why Alaska Air Stock Was Diving This Week
Alaska Air Group (NYSE: ALK) delivered an estimates-beating second quarter early this week, yet its share price dipped in response anyway.
This was compounded by the underperformance of a major peer several days later. As a result, by late Thursday after market hours Alaska Air's share price had fallen almost 13% week to date, according to data compiled by S&P Global Market Intelligence.
Savvy investors trade on future potential rather than trailing performance, and that was the issue with Alaska Air's second-quarter performance. The company beat the consensus analyst estimates for both revenue and bottom-line profitability for the period, but it offered only tepid revenue guidance for its current (third) quarter -- it believes that metric will rise by only 3% year over year at best.
Source Fool.com
