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    Stock Alert for JetBlue Airways Corp. (JBLU)

    JetBlue Airways Corp. (JBLU) is a passenger airline that operates primarily on point-to-point routes with its fleet of 115 Airbus A320 aircraft and 45 EMBRAER 190 aircraft, such as the youngest and most fuel-efficient fleet of any major United States airline. As of December 31, 2010, it served 63 destinations in 21 states, Puerto Rico, and 11 countries in the Caribbean and Latin America. Most of its flights have as an origin or destination one of its focus cities: Boston, Fort Lauderdale, Los Angeles/Long Beach, New York/JFK, or Orlando. During the year ended December 31, 2010, JBLU operated an average of 650 daily flights.

    Share Statistics (25-Mar-11) FY

    2009

    FY

    2010

    %

    Chg

    Q4

    2009

    Q4

    2010

    %

    Chg

    Symbol JBLU Revenue, $Mn 3,292.00 3,779.00 14.8% 832.00 940.00 13.0%
    Current price $6.34 Gross marg. 22.0% 23.3% 5.9% 22.0% 20.4% -7.2%
    52wk Range: $5.17-7.60 Oper. margin 8.8% 6.1%
    Avg Vol (3m): 5,920,020 Net margin 1.9% 2.6% 36.8% 1.3% 1.0% -23.1%
    Market Cap. 1.87B
    Shares Outstanding 294.75M EPS, $ 0.21 0.31 47.6% 0.04 0.05 25.00%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares of JBLU gained 31 cents, or 5.14%, to close Friday at $6.34.  In the past 52 weeks, shares of JBLU have traded between a low of $5.14 and a high of $7.60.  Approximately 9.65 million shares have traded hands during the session, compared with the average daily volume of 5.76 million. The stock is currently trading above 50-day moving average of $5.83 and below its 200-day moving average of $6.41. Market capitalization currently stands at 1.87 billion and it has 294.75 million outstanding shares.

    Soleil Securities on Friday upgraded low-cost air carrier JBLU to “buy” from “hold,” with the firm projecting fare hikes would outpace higher fuel prices. The firm also raised its target price on the stock to $9 from $7.

    In a note to clients, analyst James M. Higgin stated that the numerous fare increases undertaken this year bode well for further upside. “We believe investors are overly focused on higher fuel prices and missing the airline industry’s revenue strength, but nowhere is that more the case than for the domestically focused carriers in general and JetBlue in particular,” Higgin stated.

    In other news, the Company, together with Virgin Atlantic, last week announced the launch of a new transatlantic interline partnership that links the networks of two of aviation’s brands. Effective March 22, 2011, travelers can connect from London, Glasgow and Manchester on Virgin Atlantic onward to JBLU’s domestic flights serving destinations including Baltimore, Maryland; Charlotte, North Carolina; Chicago, Illinois; San Diego, California; San Juan, Puerto Rico; and Tampa, Florida. Under the agreement, travelers will be able to purchase single itineraries combining travel on JBLU and Virgin Atlantic.

    Visit JBLU at www.jetblue.com

    Financial Summary

    JBLU posted pre-tax income of $15 million in the fourth quarter. This compares to pre-tax income of $20 million in the year-ago period.  For the full year 2010, the Company reported pre-tax income of $161 million. This compares to a pre-tax income of $104 million for the full year 2009.

    Net income for the fourth quarter was $9 million, or $0.03 per diluted share. This compares to JBLU’s fourth quarter 2009 net income of $11 million, or $0.04 per diluted share. For the full year 2010, the Company reported net income of $97 million, or $0.31 per diluted share. This compares to net income of $61 million, or $0.21 per diluted share, for the full year 2009

    The Company reported record fourth-quarter operating revenues of $940 million despite severe weather in the Northeast, which reduced revenue by an estimated $30 million. For the full year, operating revenues totaled $3.78 billion, representing an increase of 14.8% over operating revenues of $3.29 billion for the full year 2009.

    Operating expenses for the quarter increased 14.9%, or $115 million, over the prior year period. JBLU’s operating expense per available seat mile (CASM) for the fourth quarter increased 7.6% year-over-year to 10.34 cents. Excluding fuel, CASM increased 3.6% to 6.95 cents.

    JBLU ended the year with approximately $1 billion in unrestricted cash and short-term investments

    Source: www.jetblue.com

    Financial Strength (25-Mar-2011) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 1.21 0.76 1.13 0.67
    Current Ratio (MRQ) 1.25 0.84 1.43 0.99
    LT Debt to Equity (MRQ) 172.31 140.61 49.03 115.69
    Total Debt to Equity (MRQ) 183.37 180.81 68.79 165.18
    Interest Coverage (TTM) 1.49 0.05 0.05 16.72

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among 17 polled investment analysts. Against the Jetblue Airways Corp company.

    Analyst Detail Buy Outperform Hold Underperform Sell No Opinion
    Latest 4 1 12 0 0 0
    4 weeks ago 4 2 9 0 0 0
    2 months ago 5 2 8 0 0 0
    3 months ago 6 2 8 0 0 0
    Last year 7 1 5 0 0 0

    The 11 analysts offering 12-month price targets for JBLU have a median target of 7.00, with a high estimate of 14.00 and a low estimate of 6.00. The median estimate represents a 16.09% increase from the last price of 6.03.

    Source: markets.ft.com

    Consensus Estimates Analysis


    # of Estimates Mean High Low 1 Year Ago
    SALES (in millions)
    Quarter Ending Mar-11 9 996.70 1,035.29 965.00 941.00
    Quarter Ending Jun-11 9 1,113.61 1,149.29 1,034.00 1,028.00
    Year Ending Dec-11 12 4,410.51 4,524.82 4,202.00 4,036.48
    Year Ending Dec-12 7 4,860.35 5,089.00 4,635.00 4,295.42
    EARNINGS (per share)
    Quarter Ending Mar-11 15 0.01 0.06 -0.07 0.06
    Quarter Ending Jun-11 13 0.12 0.19 0.07 0.19
    Year Ending Dec-11 17 0.39 0.60 0.18 0.53
    Year Ending Dec-12 11 0.52 0.76 0.30 0.62
    LT Growth Rate (%) 2 9.50 13.00 6.00 13.00

    Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=JBLU.O

    Technical Analysis

    Source: http://stockcharts.com

    JBLU is trading above its 20 day moving average. While this is normally considered to be a bullish sign, the moving average is downward sloping which means that investors have been liquidating shares during this time period and tempers the bullishness of the signal.

    JBLU is trading near its upper Bollinger Band. This suggests that the stock price is high relative to its recent price action.

    The MACD for JBLU currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Mar25-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    AMR Corp. AMR 6.50 2.17B n/a n/a 0.09 0.09
    Southwest Airlines Co. LUV 12.68 9.48B 16.26 12.68 0.70 0.64
    SkyWest Inc. SKYW 16.90 911.05M 11.05 8.05 0.25 0.24
    Delta Air Lines Inc DAL 9.80 8.18B 5.90 4.88 0.24 0.23
    Regional Airlines Median n/a n/a n/a n/a
    JetBlue Airways Corp. JBLU 6.34 1.87B 16.68 12.19 0.42 038

    Source: Thomson Financial

    Source: Yahoo Finance

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