We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Spirit Airlines (SAVE) Q2 Earnings: What's in the Cards?
Read MoreHide Full Article
Low-cost carrier Spirit Airlines (SAVE - Free Report) is scheduled to report its second-quarter 2016 results, before the opening bell on Jul 29.
The Miramar, FL-based discount carrier posted an earnings beat of 4.12% in the last quarter. Moreover, it has an impressive track record with respect to earnings, having outshined the Zacks Consensus Estimate in all of the last four quarters. The average earnings beat is 3.91%.
Factors at Play
Spirit Airlines is likely to suffer from the intensifying competition in the U.S. airlines industry with declining average ticket prices and lower-than-expected demand. A number of terror attacks has resulted in delayed or cancelled travel plans. Additionally, slow economic growth is not giving top-line the much needed boost either.
While lower fuel costs would help the bottom line, the high reliance on low fuel prices for margin boost is a concern for most airlines such as Southwest Airlines Co. (LUV - Free Report) and American Airlines Group, Inc.(AAL - Free Report) . The fundamentals of airline companies are still lagging and have not been displaying much needed growth. As per a recent guidance issued by the company, adjusted operating margin is expected to be around 22% for the second quarter. The company posted impressive traffic results for the month of June, however, it remains to be seen if the growth in traffic can help the company deliver better-than-expected results this quarter.
Our proven model does not conclusively show that Spirit Airlines is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: Spirit Airlines has an earnings ESP of +0.94%. This is because the Most Accurate estimate stands at $1.07 while the Zacks Consensus Estimate is pegged at $1.06.
Zacks Rank: Spirit Airlines has a Zacks Rank #5 (Strong Sell). Please note that we caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here is a transport company you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter.
LATAM Airlines Group S.A. has an earnings ESP of over +100% and a Zacks Rank #2. The company is expected to report second-quarter results on Aug 11, after market close.
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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Spirit Airlines (SAVE) Q2 Earnings: What's in the Cards?
Low-cost carrier Spirit Airlines (SAVE - Free Report) is scheduled to report its second-quarter 2016 results, before the opening bell on Jul 29.
The Miramar, FL-based discount carrier posted an earnings beat of 4.12% in the last quarter. Moreover, it has an impressive track record with respect to earnings, having outshined the Zacks Consensus Estimate in all of the last four quarters. The average earnings beat is 3.91%.
Factors at Play
Spirit Airlines is likely to suffer from the intensifying competition in the U.S. airlines industry with declining average ticket prices and lower-than-expected demand. A number of terror attacks has resulted in delayed or cancelled travel plans. Additionally, slow economic growth is not giving top-line the much needed boost either.
While lower fuel costs would help the bottom line, the high reliance on low fuel prices for margin boost is a concern for most airlines such as Southwest Airlines Co. (LUV - Free Report) and American Airlines Group, Inc.(AAL - Free Report) . The fundamentals of airline companies are still lagging and have not been displaying much needed growth. As per a recent guidance issued by the company, adjusted operating margin is expected to be around 22% for the second quarter. The company posted impressive traffic results for the month of June, however, it remains to be seen if the growth in traffic can help the company deliver better-than-expected results this quarter.
SPIRIT AIRLINES Price and EPS Surprise
SPIRIT AIRLINES Price and EPS Surprise | SPIRIT AIRLINES Quote
Earnings Whispers
Our proven model does not conclusively show that Spirit Airlines is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: Spirit Airlines has an earnings ESP of +0.94%. This is because the Most Accurate estimate stands at $1.07 while the Zacks Consensus Estimate is pegged at $1.06.
Zacks Rank: Spirit Airlines has a Zacks Rank #5 (Strong Sell). Please note that we caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here is a transport company you may want to consider as our model shows it has the right combination of elements to post an earnings beat this quarter.
LATAM Airlines Group S.A. has an earnings ESP of over +100% and a Zacks Rank #2. The company is expected to report second-quarter results on Aug 11, after market close.
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 >>