Copa Holdings Stock to Report Q2 Earnings: What's in the Cards?

Copa Holdings, S.A. (CPA)  is scheduled to report second-quarter 2025 results on Aug. 6, after market close.Copa Holdings has an encouraging earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.50%.Image Source: Zacks Investment ResearchLet’s see how things have shaped up for Copa Holdings this earnings season.Factors Likely to Have Influenced CPA’s Q2 PerformanceThe Zacks Consensus Estimate for CPA’s second-quarter 2025 earnings has been revised downward by 2.40% in the past 60 days to $3.25 per share. However, the consensus mark implies a 12.85% upside from the year-ago actual.Image Source: Zacks Investment ResearchWe expect geopolitical uncertainty, tariff-related pressures, and persistent inflation to weigh on CPA’s operations and weaken travel demand. The ongoing economic uncertainties and the resultant reduction in consumer and corporate confidence are likely to have hurt the domestic air travel demand.Escalated labor and airport costs are also likely to have been high, which would have hurt the company’s bottom-line performance in the June quarter. Despite costs on aircraft fuel decreasing year over year (down 7% in second-quarter 2025, per our model), CPA expects to continue experiencing increased cost pressure from wages, salaries, benefits and other employee expenses, airport facilities and handling charges. We expect operating costs to increase 1.2% in second-quarter 2025 from second-quarter 2024 actuals, led by the 9.4% rise in wages, salaries, benefits and other employee expenses, and the 11.5% rise in airport facilities and handling charges.The Zacks Consensus Estimate for CPA’s second-quarter 2025 revenues is pegged at $834.81 million, indicating 1.88% growth year over year. The top line is likely to have been aided by improving travel demand and lower fuel prices.Notably, the southward movement of oil prices bodes well for the bottom-line growth of industry participants. This is because fuel expenses are a significant input cost for the aviation industry. Crude oil is struggling in 2025, with prices sliding to multi-month lows. Tariff concerns, weakening consumer confidence, and the production increase by OPEC+ have all contributed to this downward pressure. Oil prices decreased 6% in the April-June 2025 period.What Our Model Says About CPAOur proven model does not conclusively predict an earnings beat for Copa Holdings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Copa Holdings has an Earnings ESP of -4.70% and a Zacks Rank #3 at present.Copa Holdings, S.A. Price and EPS Surprise Copa Holdings, S.A. price-eps-surprise | Copa Holdings, S.A. QuoteHighlights of CPA’s Q1 EarningsCopa Holdings' first-quarter 2025 earnings per share of $4.28 surpassed the Zacks Consensus Estimate of $3.77 and improved 2.2% year over year. Revenues of $899.2 million beat the Zacks Consensus Estimate of $889.5 million and inched up 0.6% year over year, due to an 8.7% increase in onboard passengers.Stocks to ConsiderHere are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.Expeditors International of Washington (EXPD), a leading third-party logistics provider, is based in Seattle, WA. EXPD currently has an Earnings ESP of +0.11% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.The company is scheduled to report its second-quarter 2025 results on Aug. 5.While weak volumes (with respect to air-freight tonnage and ocean containers) stemming from soft demand and declining rates are likely to have hurt EXPD’s performance, efforts to cut costs in the face of demand weakness are likely to have driven its bottom line. EXPD beat the Zacks Consensus Estimate in each of the last four quarters, the average being 13.3%.GXO Logistics (GXO), a pure-play contract logistics provider, is headquartered in Greenwich, CT.  GXO currently has an Earnings ESP of +8.33% and a Zacks Rank of 3. The company is slated to report second-quarter 2025 results on Aug. 5.Increased e-commerce, automation and outsourcing are likely to aid the company’s results. Cost-cutting efforts are also likely to have boosted the bottom-line performance of GXO. The company beat the Zacks Consensus Estimate in three of the last four quarters, and missed once, with the average beat being 3.9%.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report GXO Logistics, Inc. (GXO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks