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Is a Beat in Store for Spirit Airlines (SAVE) Q1 Earnings?
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Spirit Airlines, Inc. (SAVE - Free Report) is slated to release first-quarter 2018 results on Apr 26, before he market opens.
In fourth-quarter 2017, the company delivered a positive earnings surprise of 2.82%. Moreover, it has an impressive earnings history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters with an average beat of 3.5%.
Let’s see, how things shape up for this earnings season.
What the Zacks Model Unveils
Our proven model shows that Spirit Airlines is likely to beat on earnings this quarter as it comprises the perfect combination of the following two key ingredients:
Zacks ESP: Spirit Airlines has an Earnings ESP of +2.46% as the Most Accurate estimate of 44 cents is pegged above the Zacks Consensus Estimate of 43 cents. A positive ESP indicates a likely earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Spirit Airlines carries a Zacks Rank #3 (Hold), which further increases the predictive power of ESP. Notably, stocks with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have significantly higher chances of beating estimates.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
What is Driving This Better-Than-Expected Earnings?
Lower non-fuel unit costs owing to better operational performance are expected to boost the bottom line in the first quarter. Notably, the company anticipates non-fuel unit costs to decline approximately 5% in the soon-to-be reported quarter.
Additionally, the new tax law is a huge positive and is anticipated to boost profitability in the quarter. The enormous savings from the reduced corporate tax rate is likely to aid in earnings growth.
However, high fuel costs might hurt the impending results. Fuel cost (economic) is projected at $2.15 per gallon in the yet-to-be-reported quarter, much higher than $1.97, reported in the final quarter of 2017. The Zacks Consensus Estimate for first-quarter average fuel cost per gallon stands at $2.17.
Moreover, disappointing unit revenues might limit top-line growth in the quarter. The company expects total revenue per available seat mile (TRASM) to decline approximately 2.4% in the to-be-reported quarterly performance.
Other Stocks to Consider
Investors interested in the broader Transportation sector may also consider Union Pacific Corporation (UNP - Free Report) , SkyWest, Inc. (SKYW - Free Report) and Expeditors International of Washington, Inc. (EXPD - Free Report) as these stocks too possess the right combination of elements to deliver an earnings beat this time around.
Union Pacific has an Earnings ESP of +0.04% and a Zacks Rank of 3. The company is scheduled to report first-quarter earnings on Apr 26.
Expeditors is a #2 Ranked player and has an Earnings ESP of +2.09%. The company will report first-quarter earnings figures on May 8.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Is a Beat in Store for Spirit Airlines (SAVE) Q1 Earnings?
Spirit Airlines, Inc. (SAVE - Free Report) is slated to release first-quarter 2018 results on Apr 26, before he market opens.
In fourth-quarter 2017, the company delivered a positive earnings surprise of 2.82%. Moreover, it has an impressive earnings history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters with an average beat of 3.5%.
Let’s see, how things shape up for this earnings season.
What the Zacks Model Unveils
Our proven model shows that Spirit Airlines is likely to beat on earnings this quarter as it comprises the perfect combination of the following two key ingredients:
Zacks ESP: Spirit Airlines has an Earnings ESP of +2.46% as the Most Accurate estimate of 44 cents is pegged above the Zacks Consensus Estimate of 43 cents. A positive ESP indicates a likely earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Spirit Airlines carries a Zacks Rank #3 (Hold), which further increases the predictive power of ESP. Notably, stocks with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have significantly higher chances of beating estimates.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
Spirit Airlines, Inc. Price and EPS Surprise
Spirit Airlines, Inc. Price and EPS Surprise | Spirit Airlines, Inc. Quote
What is Driving This Better-Than-Expected Earnings?
Lower non-fuel unit costs owing to better operational performance are expected to boost the bottom line in the first quarter. Notably, the company anticipates non-fuel unit costs to decline approximately 5% in the soon-to-be reported quarter.
Additionally, the new tax law is a huge positive and is anticipated to boost profitability in the quarter. The enormous savings from the reduced corporate tax rate is likely to aid in earnings growth.
However, high fuel costs might hurt the impending results. Fuel cost (economic) is projected at $2.15 per gallon in the yet-to-be-reported quarter, much higher than $1.97, reported in the final quarter of 2017. The Zacks Consensus Estimate for first-quarter average fuel cost per gallon stands at $2.17.
Moreover, disappointing unit revenues might limit top-line growth in the quarter. The company expects total revenue per available seat mile (TRASM) to decline approximately 2.4% in the to-be-reported quarterly performance.
Other Stocks to Consider
Investors interested in the broader Transportation sector may also consider Union Pacific Corporation (UNP - Free Report) , SkyWest, Inc. (SKYW - Free Report) and Expeditors International of Washington, Inc. (EXPD - Free Report) as these stocks too possess the right combination of elements to deliver an earnings beat this time around.
Union Pacific has an Earnings ESP of +0.04% and a Zacks Rank of 3. The company is scheduled to report first-quarter earnings on Apr 26.
SkyWest has an Earnings ESP of +2.99% and a Zacks Rank #2. The company will report first-quarter results on Apr 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
Expeditors is a #2 Ranked player and has an Earnings ESP of +2.09%. The company will report first-quarter earnings figures on May 8.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>