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SAVEhas an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the four preceding quarters and missing in one, the average miss being 1.37%. The Zacks Consensus Estimate for the first-quarter loss has narrowed to $1.43 per share from $1.45 per share in the past 60 days.
Let us take a look at the factors that are likely to have influenced SAVE’s performance in the quarter under review.
We expect Spirit Airlines’ first-quarter performance to have been aided by upbeat air travel demand. Air traffic (measured in revenue passenger miles) is likely to increase 9.2% year over year, per our model. The company expects capacity (measured in available seat miles or ASMs) to increase 2.1% year over year. Our model estimates the load factor (percentage of seats filled by passengers) to increase from 81.3% in the first quarter of 2023 to 87% in the first quarter of 2024.
Fuel expenses are likely to have hurt the bottom line in the quarter under evaluation. The northward movement in the crude price is primarily due to the ongoing production cut by major oil-producing nations and geopolitical tensions. The oil price increased 16% in the first quarter of 2024. The fuel price per gallon is expected to be $2.90 at SAVE in the first quarter of 2024. Low fleet size due to the grounding of aircraft following engine issues is also expected to have results.
What Our Model Says
Our model does not conclusively predict an earnings beat for Spirit Airlines this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
SAVE currently has an Earnings ESP of -0.67% and Zacks Rank #3.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Spirit Airlines’ fourth-quarter 2023 loss (excluding 32 cents from non-recurring items) of $1.36 per share was narrower than the Zacks Consensus Estimate of a loss of $1.41. In the year-ago quarter, SAVE reported earnings of 12 cents per share. Revenues of $1,321.8 million beat the Zacks Consensus Estimate of $1,320.1 million. However, the top line declined 5% year over year. In the fourth quarter, passenger revenues, decreased 5.3% year over year to $1,296.71 million.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider as our model shows that these have the right combination of elements to beat on their first-quarter 2024 earnings.
Expeditors International of Washington (EXPD - Free Report) is scheduled to report its first-quarter 2024 results on May 7 before market open. EXPD has an Earnings ESP of +6.39% and Zacks Rank #2.
We are impressed with Expeditors' efforts to reward its shareholders through dividend payments and share buybacks. EXPD is looking to cut costs to drive the bottom line in this weak demand scenario. The Zacks Consensus Estimate for EXPD’s first-quarter 2024 earnings has been revised 2.8% upward over the past 60 days.
Euronav NV (EURN - Free Report) currently has an Earnings ESP of +6.94% and a Zacks Rank #3. EURN will release its first-quarter 2024 results on May 8.
Euronav is headquartered in Belgium. Favorable oil tanker rates are supporting the stock’s growth. The Zacks Consensus Estimate for EURN’s first-quarter 2024 earnings has been revised upward by 6.52% over the past 60 days.
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What's in Store for Spirit Airlines (SAVE) in Q1 Earnings?
Spirit Airlines, Inc.(SAVE - Free Report) is scheduled to release its first-quarter 2024 results on May 6 before market open.
SAVEhas an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the four preceding quarters and missing in one, the average miss being 1.37%. The Zacks Consensus Estimate for the first-quarter loss has narrowed to $1.43 per share from $1.45 per share in the past 60 days.
Let us take a look at the factors that are likely to have influenced SAVE’s performance in the quarter under review.
We expect Spirit Airlines’ first-quarter performance to have been aided by upbeat air travel demand. Air traffic (measured in revenue passenger miles) is likely to increase 9.2% year over year, per our model. The company expects capacity (measured in available seat miles or ASMs) to increase 2.1% year over year. Our model estimates the load factor (percentage of seats filled by passengers) to increase from 81.3% in the first quarter of 2023 to 87% in the first quarter of 2024.
Fuel expenses are likely to have hurt the bottom line in the quarter under evaluation. The northward movement in the crude price is primarily due to the ongoing production cut by major oil-producing nations and geopolitical tensions. The oil price increased 16% in the first quarter of 2024. The fuel price per gallon is expected to be $2.90 at SAVE in the first quarter of 2024. Low fleet size due to the grounding of aircraft following engine issues is also expected to have results.
What Our Model Says
Our model does not conclusively predict an earnings beat for Spirit Airlines this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
SAVE currently has an Earnings ESP of -0.67% and Zacks Rank #3.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Spirit Airlines, Inc. Price and EPS Surprise
Spirit Airlines, Inc. price-eps-surprise | Spirit Airlines, Inc. Quote
Highlights of Q4
Spirit Airlines’ fourth-quarter 2023 loss (excluding 32 cents from non-recurring items) of $1.36 per share was narrower than the Zacks Consensus Estimate of a loss of $1.41. In the year-ago quarter, SAVE reported earnings of 12 cents per share. Revenues of $1,321.8 million beat the Zacks Consensus Estimate of $1,320.1 million. However, the top line declined 5% year over year. In the fourth quarter, passenger revenues, decreased 5.3% year over year to $1,296.71 million.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider as our model shows that these have the right combination of elements to beat on their first-quarter 2024 earnings.
Expeditors International of Washington (EXPD - Free Report) is scheduled to report its first-quarter 2024 results on May 7 before market open. EXPD has an Earnings ESP of +6.39% and Zacks Rank #2.
We are impressed with Expeditors' efforts to reward its shareholders through dividend payments and share buybacks. EXPD is looking to cut costs to drive the bottom line in this weak demand scenario. The Zacks Consensus Estimate for EXPD’s first-quarter 2024 earnings has been revised 2.8% upward over the past 60 days.
Euronav NV (EURN - Free Report) currently has an Earnings ESP of +6.94% and a Zacks Rank #3. EURN will release its first-quarter 2024 results on May 8.
Euronav is headquartered in Belgium. Favorable oil tanker rates are supporting the stock’s growth. The Zacks Consensus Estimate for EURN’s first-quarter 2024 earnings has been revised upward by 6.52% over the past 60 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.