What is the expected impact on ALK's earnings per share for the year?

Fundamental outlook:

The upgrade to ALK’s full‑year revenue outlook signals that top‑line growth will be stronger than previously projected. Assuming the cost structure remains broadly unchanged, the incremental revenue will translate into higher net income and, consequently, a lift in earnings per share (EPS) for the year. Consensus analyst estimates are likely to be revised upward, with EPS forecasts moving from the current “low‑single‑digit” growth range to a mid‑single‑digit or even low‑double‑digit increase, depending on the magnitude of the revenue bump and any accompanying margin expansion.

Market and technical context:

The positive earnings narrative is already being priced in, as the stock has shown modest upside in the past week (≈3‑4 % gain) on the news flow. The daily chart remains in a bullish channel above the 50‑day moving average, and the relative strength index (RSI) is hovering around 55—still room for further upside before hitting overbought territory. Volume has been above the 20‑day average, indicating solid buying interest.

Trading implications:

Given the upgraded revenue outlook and the expected EPS uplift, the stock is positioned for a short‑to‑medium‑term rally. A long position with a stop just below the recent swing low (≈$1.85) could capture upside toward the next resistance level around $2.15–$2.20, where the 20‑day SMA and a prior high converge. If the price breaks above $2.20 on strong volume, it would confirm the earnings‑driven momentum and could justify a higher target. Conversely, a breach below $1.80 would suggest the market is discounting the earnings boost and may warrant a defensive exit.