Earnings Preview: LATAM Airlines Group
LATAM Airlines Group (NYSE:LTM) is gearing up to announce its quarterly earnings on Tuesday, 2026-02-03. Here's a quick overview of what investors should know before the release.
Analysts are estimating that LATAM Airlines Group will report an earnings per share (EPS) of $1.32.
The announcement from LATAM Airlines Group is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Earnings Track Record
In the previous earnings release, the company beat EPS by $0.02, leading to a 0.0% drop in the share price the following trading session.
Here's a look at LATAM Airlines Group's past performance and the resulting price change:
| Quarter | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.280 | |||
| EPS Actual | 1.304 | 0 | 0.001 | 0 |
| Price Change % | -2.000 | 2 | 4.000 | 0 |
Performance of LATAM Airlines Group Shares
Shares of LATAM Airlines Group were trading at $65.81 as of January 30. Over the last 52-week period, shares are up 119.11%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Insights on LATAM Airlines Group
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding LATAM Airlines Group.
The consensus rating for LATAM Airlines Group is Outperform, derived from 1 analyst ratings. An average one-year price target of $60.0 implies a potential 8.83% downside.
Analyzing Analyst Ratings Among Peers
This comparison focuses on the analyst ratings and average 1-year price targets of Southwest Airlines, Alaska Air Gr and United Airlines Holdings, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Southwest Airlines, with an average 1-year price target of $44.8, suggesting a potential 31.93% downside.
- Analysts currently favor an Buy trajectory for Alaska Air Gr, with an average 1-year price target of $68.57, suggesting a potential 4.19% upside.
- Analysts currently favor an Buy trajectory for United Airlines Holdings, with an average 1-year price target of $140.07, suggesting a potential 112.84% upside.
Insights: Peer Analysis
The peer analysis summary presents essential metrics for Southwest Airlines, Alaska Air Gr and United Airlines Holdings, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| LATAM Airlines Group | Outperform | 17.06% | $1.18B | 37.55% |
| Southwest Airlines | Neutral | 7.09% | $1.16B | 4.10% |
| Alaska Air Gr | Buy | -3.56% | $575M | 0.52% |
| United Airlines Holdings | Buy | 1.13% | $4.42B | 7.06% |
Key Takeaway:
LATAM Airlines Group ranks highest in Revenue Growth among its peers. It also leads in Gross Profit. However, it has the lowest Return on Equity.
Unveiling the Story Behind LATAM Airlines Group
LATAM Airlines Group SA operates as a passenger airline group. The company and its affiliates provide domestic services in Brazil, Chile, Peru, Colombia, and Ecuador, as well as regional flights and long-haul operations. LATAM group carries out cargo operations using both belly space on passenger flights and dedicated freighter aircraft. In addition, it also offers complementary services, such as ground handling, courier, logistics, and maintenance. Geographically, the group generates maximum revenue from Brazil, followed by Chile, the United States of America, Peru, Europe, Colombia, Ecuador, Asia Pacific, and the rest of Latin America.
Key Indicators: LATAM Airlines Group's Financial Health
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
Positive Revenue Trend: Examining LATAM Airlines Group's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 17.06% as of 30 September, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Net Margin: LATAM Airlines Group's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 9.97%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): LATAM Airlines Group's ROE excels beyond industry benchmarks, reaching 37.55%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): LATAM Airlines Group's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.26%, the company showcases efficient use of assets and strong financial health.
Debt Management: LATAM Airlines Group's debt-to-equity ratio stands notably higher than the industry average, reaching 6.9. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
To track all earnings releases for LATAM Airlines Group visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.