What are key insights from CPA's 2024 earnings performance?

Copa Holdings (CPA) experienced a decline in net income and revenue compared to the previous year, but there were some positive aspects in its earnings performance: 1. **Earnings Performance**: CPA's net income for 2024Q4 was $166.18 million, which is a decrease of -11.46% from the same period in the previous year. The total revenue for the same period was $877.05 million, representing a -3.92% decline year-over-year. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |CPA|CPA.N|Copa Holdings|2024 Q1|44.88524617144362|3.0213406759648733||169| |CPA|CPA.N|Copa Holdings|2024 Q2|586.8067850819579|1.262126323854719||169| |CPA|CPA.N|Copa Holdings|2024 Q3|-22.067511674449634|-1.498540412648912||169| |CPA|CPA.N|Copa Holdings|2024 Q4|-11.460736415316502|-3.9205118092984534||169| 2. **Earnings Surprise**: The earnings per share (EPS) surprise for CPA on December 31, 2024, was $0.08, indicating that the actual EPS was higher than the expected EPS. |code|Ticker|Name|Date|Estimate EPS YoY|Estimate Revenue YoY|market_code| |---|---|---|---|---|---|---| |CPA|CPA.N|Copa Holdings|20240331|0.2941176470588303|2.7481371087928466|169| |CPA|CPA.N|Copa Holdings|20240630|-7.142857142857137|6.0051565746326565|169| |CPA|CPA.N|Copa Holdings|20240930|-7.38786279683378|-1.154882734101726|169| |CPA|CPA.N|Copa Holdings|20241231|1.0335917312661507|-0.23585704129190976|169| 3. **Profitability Margins**: Despite the decline in revenue, CPA showed an increase in profit margin. The profit margin for Q2 2024 was 15%, up from 2.2% in the same period in 2023. 4. **Operating Margin**: CPA maintained a robust operating margin of 20.3% in Q3 2024, which highlights the company's operational efficiency amid revenue challenges. 5. **Stock Valuation**: CPA's P/E ratio as of April 3, 2025, is 6.17, indicating that the stock is relatively expensive compared to earnings. The P/S ratio is 1.09, suggesting that the stock is trading at a premium to its sales. The P/B ratio is 1.6, which is moderate and suggests a reasonable valuation based on book value. |code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code| |---|---|---|---|---|---|---|---| |CPA|CPA.N|Copa Holdings|20240404|7.399883|0|2.1164043757140045|169| |CPA|CPA.N|Copa Holdings|20240405|7.458531|0|2.1331779392227346|169| |CPA|CPA.N|Copa Holdings|20240408|7.540638|0|2.1566609281349565|169| |CPA|CPA.N|Copa Holdings|20240409|7.638139|0|2.18454697746822|169| |CPA|CPA.N|Copa Holdings|20240410|7.469527|0|2.136322982380621|169| |CPA|CPA.N|Copa Holdings|20240411|7.547235|0|2.158547954029689|169| |CPA|CPA.N|Copa Holdings|20240412|7.067057|0|2.021214402801962|169| |CPA|CPA.N|Copa Holdings|20240415|7.05606|0|2.018069359644075|169| |CPA|CPA.N|Copa Holdings|20240416|7.020872|0|2.008005221538837|169| |CPA|CPA.N|Copa Holdings|20240417|7.173356|0|2.051616486661535|169| In conclusion, while CPA faced challenges in terms of revenue growth and net income, the company demonstrated resilience in profitability margins and operating efficiency. The positive earnings surprise and strong operating margin indicate that CPA is effectively managing its resources to maintain profitability. However, the high P/E ratio suggests that investors may have high expectations for future earnings growth.