Equities Analysts Update Air Canada Q1 Earnings Forecast

On February 18th, Cormark announced a revision to their earnings estimates for Air Canada (TSE:AC) regarding the first quarter of 2025. Analyst D. Ocampo now predicts that Air Canada will report earnings of ($0.62) per share, which is a significant decrease from the earlier estimate of ($0.14) per share.

Currently, analysts expect Air Canada’s full-year earnings to average around $2.58 per share. Cormark also provided estimates for Air Canada’s earnings in upcoming quarters: they anticipate earnings of $2.01 per share in Q3 2025, $0.24 per share in Q4 2025, and for the following year, the estimates are ($0.50) for Q1 2026, $0.75 for Q2 2026, $2.16 for Q3 2026, $0.27 for Q4 2026, and full-year earnings of $2.69 for FY2026.

Other research firms have also recently analyzed Air Canada’s performance. ATB Capital raised their target price from C$28.00 to C$31.00, assigning an “outperform” rating. Meanwhile, CIBC lowered their target from C$28.00 to C$24.00. Additionally, National Bankshares increased their price target from C$22.00 to C$27.00, and Canaccord Genuity raised theirs from C$25.00 to C$29.00. Stifel Nicolaus, however, reduced their estimate from C$28.00 to C$26.00. In total, two analysts recommend holding the stock, ten suggest buying, and one rates it as a strong buy, leading to an average rating of “Moderate Buy” and a consensus target price of C$26.20, according to MarketBeat.com.

Air Canada Stock Overview

On the trading day following the report, Air Canada shares opened at C$16.84. The company features a high debt-to-equity ratio of 400.00. The quick ratio stands at 1.06 and the current ratio is 0.92, with a market capitalization of C$6.01 billion. Its price-to-earnings ratio is remarkably low at 2.37, alongside a price-to-earnings-growth ratio of 0.02 and a beta of 2.39. In the past year, Air Canada's stock has fluctuated between a low of C$14.47 and a high of C$26.18. The 50-day moving average is C$20.52, and the 200-day average is C$19.37.

Insider Transactions

In other news related to Air Canada, Director Vagn Sorensen acquired 11,440 shares on February 19th at an average price of C$17.40, totaling approximately C$199,057. Additionally, Senior Officer Arielle Meloul-Wechsler sold 6,000 shares on December 19th at an average price of C$21.71, generating a total of about C$130,246.80. Currently, insiders own 0.14% of the stock.

About Air Canada

Air Canada is a major provider of airline services, offering scheduled passenger flights domestically and internationally. The company operates under the Air Canada Vacations and Air Canada Rouge brands, serving various markets, including the Canada-U.S. transborder market and international flights to and from Canada, often through partnerships with regional carriers.

AirCanada, Earnings, Forecasts