AMR Corp Earnings Preview

Published on Tuesday, 19 January 2010 10:11 Written by Danny Miller

New York, Jan 19^th (TradersHuddle.com) – Shares of AMR Corporation (NYSE:AMR) are trading fractionally higher in the early trading session, as investors await AMR’s quarterly results.

AMR has been trading higher for the last few weeks with the entire airline sector; AMR has seen its stock soar from the $5.20 level to peak at $8.50 in just 3 weeks.

Investors are hoping for a good earnings report and surprise to the upside that can continue to keep the stock at its new upper range.  Although, Wall Street analysts seem to disagree as the consensus is calling for a loss of $1.20 on $5.03 billion revenue. If the consensus holds it will be difficult for traders to hold the fort on the airlines, as the comparison with a year ago would make this quarter worse.

AMR will be releasing its earnings report on Wednesday January 20^th, and Wall Street analysts low estimate calls for a loss of $1.30 on $4.97 billion revenue, while the high estimate calls for a loss of $1.05 on $5.07 billion revenue. There is a big discrepancy among analysts that could be seen in the wide range of earnings expectations; however, all of them agree that revenue will be declining as the airline has been cutting flights.