Allegiant Travel Company (ALGT - Free Report) shares gained 4.3% since its fourth-quarter 2023 earnings release on Feb 5. Quarterly earnings per share (EPS) came in at 11 cents against the Zacks Consensus Estimate’s loss of 67 cents. Operating revenues of $611 million outperformed the Zacks Consensus Estimate of $601.5 million but decreased marginally on a year-over-year basis.
Passenger revenues, which accounted for the bulk (91%) of the top line, fell 1.5% on a year-over-year basis. Air traffic (measured in revenue passenger miles) for scheduled service grew 3.2% year over year in the quarter under review. Capacity (measured in available seat miles or ASMs) rose 5.7% from the year-ago number. The load factor (percentage of seats filled by passengers) decreased to 83.3% from 85.3% in the reported quarter, as traffic did not outperform capacity.
Operating cost per available seat miles, excluding fuel, jumped 10.8% year over year to 8.50 cents. Average fuel cost per gallon (scheduled) decreased 10.6% to $3.20. Total scheduled service passenger revenue per available seat miles fell to 13.16 cents from 14.03 cents a year ago.
Liquidity
As of Dec 31, 2023, Allegiant’s total unrestricted cash and investments were $870.7 million compared with $1,007 million at the third-quarter end. Long-term debt and finance lease obligations (net of current maturities and related costs) totaled $1,819.7 million compared with $2,020 million at the prior-quarter end.
Guidance
For the first quarter of 2024, ASM (for scheduled service) is expected to increase 1% on a year-over-year basis. Total system ASM is projected to rise 1% on a year-over-year basis.
Operating margin is expected to be between 8% and 10%. EPS (airline) is anticipated to be in the range of $1.00-$2.00. Fuel cost per gallon is expected to be $2.85.
For 2024, ASM (for scheduled service) is expected to increase in the range of 2-6% on a year-over-year basis. Total system ASM is projected to rise 2-6% on a year-over-year basis.
Interest expenses are anticipated to be in the range of $140-$150 million.
Under airline capex, aircraft, engines, induction costs and pre-delivery deposits are expected to be in the $535-$555 million band. Capitalized deferred heavy maintenance is envisioned to be between $80 million and $90 million. Other airline capital expenditures are expected to be between $155 million and $165 million.
The company aims to expand its fleet size to 130 by 2024-end.
Allegiant carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 EPS of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines (DAL - Free Report) has reported fourth-quarter 2023 EPS (excluding $1.88 from non-recurring items) of $1.28, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported fourth-quarter 2023 EPS (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (accounting for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.
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Allegiant Travel Company (ALGT - Free Report) shares gained 4.3% since its fourth-quarter 2023 earnings release on Feb 5. Quarterly earnings per share (EPS) came in at 11 cents against the Zacks Consensus Estimate’s loss of 67 cents. Operating revenues of $611 million outperformed the Zacks Consensus Estimate of $601.5 million but decreased marginally on a year-over-year basis.
Passenger revenues, which accounted for the bulk (91%) of the top line, fell 1.5% on a year-over-year basis. Air traffic (measured in revenue passenger miles) for scheduled service grew 3.2% year over year in the quarter under review. Capacity (measured in available seat miles or ASMs) rose 5.7% from the year-ago number. The load factor (percentage of seats filled by passengers) decreased to 83.3% from 85.3% in the reported quarter, as traffic did not outperform capacity.
Operating cost per available seat miles, excluding fuel, jumped 10.8% year over year to 8.50 cents. Average fuel cost per gallon (scheduled) decreased 10.6% to $3.20. Total scheduled service passenger revenue per available seat miles fell to 13.16 cents from 14.03 cents a year ago.
Liquidity
As of Dec 31, 2023, Allegiant’s total unrestricted cash and investments were $870.7 million compared with $1,007 million at the third-quarter end. Long-term debt and finance lease obligations (net of current maturities and related costs) totaled $1,819.7 million compared with $2,020 million at the prior-quarter end.
Guidance
For the first quarter of 2024, ASM (for scheduled service) is expected to increase 1% on a year-over-year basis. Total system ASM is projected to rise 1% on a year-over-year basis.
Operating margin is expected to be between 8% and 10%. EPS (airline) is anticipated to be in the range of $1.00-$2.00. Fuel cost per gallon is expected to be $2.85.
For 2024, ASM (for scheduled service) is expected to increase in the range of 2-6% on a year-over-year basis. Total system ASM is projected to rise 2-6% on a year-over-year basis.
Interest expenses are anticipated to be in the range of $140-$150 million.
Under airline capex, aircraft, engines, induction costs and pre-delivery deposits are expected to be in the $535-$555 million band. Capitalized deferred heavy maintenance is envisioned to be between $80 million and $90 million. Other airline capital expenditures are expected to be between $155 million and $165 million.
The company aims to expand its fleet size to 130 by 2024-end.
Allegiant carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 EPS of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines (DAL - Free Report) has reported fourth-quarter 2023 EPS (excluding $1.88 from non-recurring items) of $1.28, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported fourth-quarter 2023 EPS (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (accounting for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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