American Airlines stock plunged 3.2% as it lost $2.4 billion in the recent quarter. The first U.S. airline has unveiled a third consecutive quarterly loss as travel restrictions related to the coronavirus pandemic continue. The Texan carrier, which saw revenue plunge 73% in the three months to the end of September to $3.2 billion, posted an adjusted loss per share of $5.54 compared to EPS of $1.42 a year earlier. The group, which still burned $44 million in cash per day over the period, estimates that its daily cash consumption is expected to be between $25 million and $30 million over the last three months of the year. It plans to raise an additional $1 billion to strengthen its balance sheet and is expected to end the year with more than $13 billion in cash.
On the other hand, Southwest Airlines rallied 5.2% despite posting a record quarterly loss of more than $1 billion as it was a victim of the pandemic. The Dallas-based airline reported a net deficit of $1.2 billion, or $1.96 per share, compared with a profit of $659 million a year earlier. Adjusted loss was also $1.2 billion. Consensus, however, was even lower at a loss of $2.35 per share. Quarterly operating revenues fell 68% to $1.8 billion. The group ended the quarter with $15.6 billion in cash.
3 Tiny Stocks Primed to Explode
The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free
Sponsored
McAfee gave up 6.5% to $18.70 in its return to Wall Street. The cybersecurity solutions designer announced Wednesday that its IPO had raised $740 million. The company and some investors sold 37 million shares at $20 each. McAfee sold 31 million shares and investors in question 6 million. The valuation for this IPO is approximately $8.6 billion at an IPO of $20. The San Jose group was acquired by Intel in 2010, before the processor giant transferred a 51% stake to investment firm TPG for $1.1 billion in 2016. Current shareholders include TPG, Intel, Singapore’s GIC Pte and private equity firm Thoma Bravo.
