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Allegiant Travel (ALGT) Posts Wider-Than-Expected Q2 Loss
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Allegiant Travel Company (ALGT - Free Report) second-quarter 2020 loss of $5.96 per share (excluding 11 cents from non-recurring items) was wider than the Zacks Consensus Estimate of a loss of $4.53. The company reported earnings of $4.33 per share in the year-ago quarter when air-travel demand was strong. However, with the advent of coronavirus the same plummeted and hurt second-quarter 2020 results.
Moreover, quarterly revenues of $133.3 million plunged 72.9% year over year but surpassed the Zacks Consensus Estimate of $125.9 million. The downtick was caused by 74.4% drop in passenger revenues.
Allegiant Travel Company Price, Consensus and EPS Surprise
Air traffic (measured in revenue passenger miles or RPMs) for scheduled service declined 69.3% in the quarter under review. Capacity (measured in available seat miles or ASMs) dropped 49.6% year over year. Consequently, load factor (percentage of seats filled by passengers) deteriorated 3270 basis points to 50.9% in the reported quarter as capacity contraction outweighed traffic plunge.
Airline operating cost per available seat miles (CASM) excluding fuel rose 65% year over year. Average fuel cost per gallon (scheduled) declined 50% to $1.11 in the quarter. Moreover, total scheduled service passenger revenue per available seat miles (TRASM) fell 47.6% to 5.75 cents.
Liquidity
As of June 30, 2020, Allegiant Travel’ unrestricted cash and investments totalled $663.1 million compared with $473.3 million at the end of December 2019. Long-term debt and finance lease obligations (net of current maturities and related costs) came at $1273.4 million, up 2% from 2019 end.
Let’s take a look into some other Zacks Transportation sector companies’ second-quarter results.
Canadian National’s (CNI - Free Report) second-quarter 2020 earnings (excluding 36 cents from non-recurring items) of 92 cents per share (C$0.77) were in line with the Zacks Consensus Estimate. However, the bottom line declined 28.7% year over year. Quarterly revenues of $2,315 million (C$3,209 million) missed the Zacks Consensus Estimate of $2,407.6 million and fell 21.8% year over year.
J.B. Hunt Transport (JBHT - Free Report) , reported second-quarter 2020 earnings of $1.14 per share that surpassed the Zacks Consensus Estimate by 31 cents. Total revenues of $2,145.6 million beat the Zacks Consensus Estimate of $2,060.9 million.
Kansas City Southern’s second-quarter earnings (excluding a penny from non-recurring items) of $1.15 per share beat the Zacks Consensus Estimate of $1.12. Total revenues of $547.9 million lagged the consensus mark of $550.2 million.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Allegiant Travel (ALGT) Posts Wider-Than-Expected Q2 Loss
Allegiant Travel Company (ALGT - Free Report) second-quarter 2020 loss of $5.96 per share (excluding 11 cents from non-recurring items) was wider than the Zacks Consensus Estimate of a loss of $4.53. The company reported earnings of $4.33 per share in the year-ago quarter when air-travel demand was strong. However, with the advent of coronavirus the same plummeted and hurt second-quarter 2020 results.
Moreover, quarterly revenues of $133.3 million plunged 72.9% year over year but surpassed the Zacks Consensus Estimate of $125.9 million. The downtick was caused by 74.4% drop in passenger revenues.
Allegiant Travel Company Price, Consensus and EPS Surprise
Allegiant Travel Company price-consensus-eps-surprise-chart | Allegiant Travel Company Quote
Quarter in Details
Air traffic (measured in revenue passenger miles or RPMs) for scheduled service declined 69.3% in the quarter under review. Capacity (measured in available seat miles or ASMs) dropped 49.6% year over year. Consequently, load factor (percentage of seats filled by passengers) deteriorated 3270 basis points to 50.9% in the reported quarter as capacity contraction outweighed traffic plunge.
Airline operating cost per available seat miles (CASM) excluding fuel rose 65% year over year. Average fuel cost per gallon (scheduled) declined 50% to $1.11 in the quarter. Moreover, total scheduled service passenger revenue per available seat miles (TRASM) fell 47.6% to 5.75 cents.
Liquidity
As of June 30, 2020, Allegiant Travel’ unrestricted cash and investments totalled $663.1 million compared with $473.3 million at the end of December 2019. Long-term debt and finance lease obligations (net of current maturities and related costs) came at $1273.4 million, up 2% from 2019 end.
Zacks Rank
Allegiant Travel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Sectorial Snapshot
Let’s take a look into some other Zacks Transportation sector companies’ second-quarter results.
Canadian National’s (CNI - Free Report) second-quarter 2020 earnings (excluding 36 cents from non-recurring items) of 92 cents per share (C$0.77) were in line with the Zacks Consensus Estimate. However, the bottom line declined 28.7% year over year. Quarterly revenues of $2,315 million (C$3,209 million) missed the Zacks Consensus Estimate of $2,407.6 million and fell 21.8% year over year.
J.B. Hunt Transport (JBHT - Free Report) , reported second-quarter 2020 earnings of $1.14 per share that surpassed the Zacks Consensus Estimate by 31 cents. Total revenues of $2,145.6 million beat the Zacks Consensus Estimate of $2,060.9 million.
Kansas City Southern’s second-quarter earnings (excluding a penny from non-recurring items) of $1.15 per share beat the Zacks Consensus Estimate of $1.12. Total revenues of $547.9 million lagged the consensus mark of $550.2 million.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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