An update has been issued on ExpressJet Holdings, Inc. (XJT), in which Zacks senior aviation industry analyst Ann H. Heffron, CFA is restating her Hold rating on the company. We excerpted the following details:


'We are maintaining our hold on ExpressJet Holdings, Inc. XJT reported a third quarter loss per share of $0.40, below our estimate of a $0.14 loss per share. Higher fuel and marketing costs combined with lower revenues from the branded fleet were the reasons for the shortfall. We are cutting our 2007 EPS estimate again this time to a $1.10 loss per share from a $0.56 loss per share, as well as slashing our 2008 estimate to a loss of $1.20 per share from EPS of $0.80.


'We note that any estimate could prove wide of the mark given the uncertainties about XJT's new business plan. However, until branded sales increase and the branded fleet is more productive (it had a load factor of 60.5% versus 79.4% for the contract business in the third quarter), XJT will continue to post operating losses. Higher fuel costs pose an additional challenge. At its current price, the stock trades well below the regional and industry medians for price/sales and price/book.


'While plans have been finalized for the 69 jets released by Continental Airlines (CAL), it remains to be seen whether XJT can operate these profitably under its new business model. Until there is better visibility regarding XJT's situation, we think a Hold recommendation is appropriate. Our six-month target price of $3 reflects a 0.7X price/book value.'