Allegiant Travel Company (ALGT - Free Report) is scheduled to report second-quarter 2020 results on Jul 29, after market close.
Similar to the first quarter, second-quarter results are expected to reflect coronavirus-related adversities. In fact, travel-demand woes stemming from coronavirus are likely to have had a greater impact on Allegiant’s second-quarter performance than on its first. This is because air travel demand started slowing down mainly in March. Hence, the first quarter faced a limited impact while the second quarter bore the brunt of the meltdown in air travel demand.
With air travel demand significantly below year-ago levels amid coronavirus concerns, the company’s passenger revenues (accounting for approximately 90% of the top line) are expected to have taken a major hit. The Zacks Consensus Estimate for second-quarter passenger revenues indicates a 72.3% plunge from the year-ago reported number. The same for total revenues suggests a 74.4% decline from second-quarter 2019’s reported figure.
Due to suppressed travel demand, Allegiant reduced its second-quarter capacity significantly. The Zacks Consensus Estimate for second-quarter capacity (total system) hints at a 54.8% fall from second-quarter 2019’s reported figure.
With fuel costs accounting for a major chunk of airline expenditures, low fuel prices are anticipated to have partly mitigated the loss of revenues from coronavirus-related woes. Low fuel costs are expected to get reflected in the second-quarter bottom line. The Zacks Consensus Estimate for average fuel cost per gallon (total system) implies a 45.5% decline from the year-ago reported number.
Earnings Whispers
The proven Zacks model predicts an earnings beat for Allegiant in the second quarter of 2020. This is because the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Allegiant has an Earnings ESP of +23.25% as the Most Accurate Estimate is pegged at a loss of $3.48 while the Zacks Consensus Estimate stands at a loss of $4.53. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Allegiant carries a Zacks Rank #3.
Highlights of Q1 Earnings
In the last-reported quarter, the company delivered an earnings surprise of 253.5%. Quarterly revenues also beat the Zacks Consensus Estimate. However, both the top and bottom lines declined year over year with passenger revenues falling 9.8% due to low travel demand.
Other Stocks to Consider
Investors interested in the broader Transportation sector may also consider Expeditors International of Washington, Inc. (EXPD - Free Report) , C.H. Robinson Worldwide, Inc. (CHRW - Free Report) and Hawaiian Holdings, Inc. (HA - Free Report) , as these stocks too possess the right combination of elements to beat on earnings this reporting cycle.
Expeditors has an Earnings ESP of +6.87% and a Zacks Rank of 3. The company will release second-quarter earnings numbers on Aug 4.
C.H. Robinson has an Earnings ESP of +6.02% and a Zacks Rank of 3. The company will announce second-quarter results on Jul 28.
Hawaiian Holdings has an Earnings ESP of +27.51% and a Zacks Rank #3. The company is set to announce second-quarter financial numbers on Jul 28.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Allegiant Travel Company (ALGT - Free Report) is scheduled to report second-quarter 2020 results on Jul 29, after market close.
Similar to the first quarter, second-quarter results are expected to reflect coronavirus-related adversities. In fact, travel-demand woes stemming from coronavirus are likely to have had a greater impact on Allegiant’s second-quarter performance than on its first. This is because air travel demand started slowing down mainly in March. Hence, the first quarter faced a limited impact while the second quarter bore the brunt of the meltdown in air travel demand.
With air travel demand significantly below year-ago levels amid coronavirus concerns, the company’s passenger revenues (accounting for approximately 90% of the top line) are expected to have taken a major hit. The Zacks Consensus Estimate for second-quarter passenger revenues indicates a 72.3% plunge from the year-ago reported number. The same for total revenues suggests a 74.4% decline from second-quarter 2019’s reported figure.
Due to suppressed travel demand, Allegiant reduced its second-quarter capacity significantly. The Zacks Consensus Estimate for second-quarter capacity (total system) hints at a 54.8% fall from second-quarter 2019’s reported figure.
With fuel costs accounting for a major chunk of airline expenditures, low fuel prices are anticipated to have partly mitigated the loss of revenues from coronavirus-related woes. Low fuel costs are expected to get reflected in the second-quarter bottom line. The Zacks Consensus Estimate for average fuel cost per gallon (total system) implies a 45.5% decline from the year-ago reported number.
Earnings Whispers
The proven Zacks model predicts an earnings beat for Allegiant in the second quarter of 2020. This is because the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Allegiant has an Earnings ESP of +23.25% as the Most Accurate Estimate is pegged at a loss of $3.48 while the Zacks Consensus Estimate stands at a loss of $4.53. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Allegiant carries a Zacks Rank #3.
Highlights of Q1 Earnings
In the last-reported quarter, the company delivered an earnings surprise of 253.5%. Quarterly revenues also beat the Zacks Consensus Estimate. However, both the top and bottom lines declined year over year with passenger revenues falling 9.8% due to low travel demand.
Other Stocks to Consider
Investors interested in the broader Transportation sector may also consider Expeditors International of Washington, Inc. (EXPD - Free Report) , C.H. Robinson Worldwide, Inc. (CHRW - Free Report) and Hawaiian Holdings, Inc. (HA - Free Report) , as these stocks too possess the right combination of elements to beat on earnings this reporting cycle.
Expeditors has an Earnings ESP of +6.87% and a Zacks Rank of 3. The company will release second-quarter earnings numbers on Aug 4.
C.H. Robinson has an Earnings ESP of +6.02% and a Zacks Rank of 3. The company will announce second-quarter results on Jul 28.
Hawaiian Holdings has an Earnings ESP of +27.51% and a Zacks Rank #3. The company is set to announce second-quarter financial numbers on Jul 28.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on CHRW - FREE
Get the latest research report on EXPD - FREE
Get the latest research report on HA - FREE
Get the latest research report on ALGT - FREE