Value Microcaps Motherboard

[abh3vt]

I think HA analysts had already trimmed estimates. Looking at the numbers in the PR, it appears that revenues are actually a bit HIGHER than what analysts were forecasting for Q3:

Operating Rev/ASM: 0.144 (Q3)
ASMs: 4052 (x1MM)

Projected Operating Rev (Q3): 583.5MM

Current analyst forecasted range for Q3 rev:
563MM - 577MM
http://finance.yahoo.com/q/ae?s=ha&ql=1

Forecasted expenses are actually better than previously expected....so I'm not sure that this is all negative. The guidance for revenue/paying customer previously provided by management was a bit aggressive. They had expected it to be down 3% y/y and now expect it be closer to 6% down y/y. Don't forget that the number of paying customers is still UP 25% in Q3, so overall revenues will still be up nicely.

Total costs are still unknown, but if they are now forecasting for a bigger drop in Cost per ASM (ex fuel costs) that should also be viewed positively.

I think the initial read on this report is wrong.