We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Allegiant (ALGT) Posts Narrower-Than-Expected Loss in Q4
Read MoreHide Full Article
Allegiant Travel Company (ALGT - Free Report) incurred fourth-quarter 2020 loss (excluding 67 cents from non-recurring items) of $1.12 per share, narrower than the Zacks Consensus Estimate of a loss of $2.44. Results were hurt by coronavirus-induced weakness in air-travel demand. However, sentiments were bullish in the year-ago quarter when the company delivered earnings of $3.72 per share on strong air-travel demand.
Moreover, operating revenues of $246.6 million plunged 46.5% year over year but surpassed the Zacks Consensus Estimate of $239.6 million. The downside was due to 46.1% fall in passenger revenues, which accounted for bulk (91.2%) of the top line.
Quarter in Details
Air traffic (measured in revenue passenger miles or RPMs) for scheduled service declined 38.9% in the quarter under review. Capacity (measured in available seat miles or ASMs) declined 13.9% year over year. Consequently, load factor (percentage of seats filled by passengers) deteriorated 2390 basis points to 58.2% in the reported quarter as traffic plunge outweighed capacity contraction.
Operating cost per available seat miles (CASM) excluding fuel dipped 2.8% year over year. Average fuel cost per gallon (scheduled) declined 35.8% to $1.40 in the quarter. Moreover, total scheduled service passenger revenue per available seat miles (TRASM) fell 36.9% to 7.30 cents.
Allegiant Travel Company Price, Consensus and EPS Surprise
As of Dec 31, 2020, Allegiant Travel’s unrestricted cash and investments totalled $685.3 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 in at $1,441.8 million, up 15.5% from 2019-end levels.
Q1 Expectations
Allegiant expects earnings per share to be positive in the first quarter of 2021. Net debt after each quarter end of 2021 is expected to be less than year-end 2019.
For first-quarter 2021, CASM is expected to be down between 4% and 5% from first-quarter 2019’s levels. ASM (for scheduled service as well as system wide) are expected between +0.5% and +5.5% compared with first-quarter 2019 figures.
2021 Expectations
Full year 2021 total capex is expected to be approximately $200 million, majorly driven by aircraft acquisitions. Additionally, total debt payments are expected to be nearly $225 million ($175 million in scheduled principal payments with the remaining being interest). Interest expenses are expected in the range of $50-$55 million.
Let’s take a look at some of the other recently released earnings reports from companies within the Zacks Transportation sector.
United Airlines (UAL - Free Report) incurred a loss (excluding 6 cents from non-recurring items) of $7 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $6.56. Further, operating revenues of $3,412 million lagged the Zacks Consensus Estimate of $3,420.4 million.
J.B. Hunt Transport Services (JBHT - Free Report) reported earnings of $1.44 per share, beating the Zacks Consensus Estimate of $1.27. Total operating revenues of $2,737.7 million also surpassed the Zacks Consensus Estimate of $2,514.3 million.
Delta Air Lines (DAL - Free Report) incurred a loss (excluding $1.34 from non-recurring items) of $2.53 per share in fourth-quarter 2020, wider than the Zacks Consensus Estimate of a loss of $2.43. Total revenues of $3,973 million topped the Zacks Consensus Estimate of $3,754.5 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.
Image: Bigstock
Allegiant (ALGT) Posts Narrower-Than-Expected Loss in Q4
Allegiant Travel Company (ALGT - Free Report) incurred fourth-quarter 2020 loss (excluding 67 cents from non-recurring items) of $1.12 per share, narrower than the Zacks Consensus Estimate of a loss of $2.44. Results were hurt by coronavirus-induced weakness in air-travel demand. However, sentiments were bullish in the year-ago quarter when the company delivered earnings of $3.72 per share on strong air-travel demand.
Moreover, operating revenues of $246.6 million plunged 46.5% year over year but surpassed the Zacks Consensus Estimate of $239.6 million. The downside was due to 46.1% fall in passenger revenues, which accounted for bulk (91.2%) of the top line.
Quarter in Details
Air traffic (measured in revenue passenger miles or RPMs) for scheduled service declined 38.9% in the quarter under review. Capacity (measured in available seat miles or ASMs) declined 13.9% year over year. Consequently, load factor (percentage of seats filled by passengers) deteriorated 2390 basis points to 58.2% in the reported quarter as traffic plunge outweighed capacity contraction.
Operating cost per available seat miles (CASM) excluding fuel dipped 2.8% year over year. Average fuel cost per gallon (scheduled) declined 35.8% to $1.40 in the quarter. Moreover, total scheduled service passenger revenue per available seat miles (TRASM) fell 36.9% to 7.30 cents.
Allegiant Travel Company Price, Consensus and EPS Surprise
Allegiant Travel Company price-consensus-eps-surprise-chart | Allegiant Travel Company Quote
Liquidity
As of Dec 31, 2020, Allegiant Travel’s unrestricted cash and investments totalled $685.3 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 in at $1,441.8 million, up 15.5% from 2019-end levels.
Q1 Expectations
Allegiant expects earnings per share to be positive in the first quarter of 2021. Net debt after each quarter end of 2021 is expected to be less than year-end 2019.
For first-quarter 2021, CASM is expected to be down between 4% and 5% from first-quarter 2019’s levels. ASM (for scheduled service as well as system wide) are expected between +0.5% and +5.5% compared with first-quarter 2019 figures.
2021 Expectations
Full year 2021 total capex is expected to be approximately $200 million, majorly driven by aircraft acquisitions. Additionally, total debt payments are expected to be nearly $225 million ($175 million in scheduled principal payments with the remaining being interest). Interest expenses are expected in the range of $50-$55 million.
Zacks Rank
Allegiant Travel currently carries a Zacks Rank #5 (Strong Sell).You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Sectorial Snapshots
Let’s take a look at some of the other recently released earnings reports from companies within the Zacks Transportation sector.
United Airlines (UAL - Free Report) incurred a loss (excluding 6 cents from non-recurring items) of $7 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $6.56. Further, operating revenues of $3,412 million lagged the Zacks Consensus Estimate of $3,420.4 million.
J.B. Hunt Transport Services (JBHT - Free Report) reported earnings of $1.44 per share, beating the Zacks Consensus Estimate of $1.27. Total operating revenues of $2,737.7 million also surpassed the Zacks Consensus Estimate of $2,514.3 million.
Delta Air Lines (DAL - Free Report) incurred a loss (excluding $1.34 from non-recurring items) of $2.53 per share in fourth-quarter 2020, wider than the Zacks Consensus Estimate of a loss of $2.43. Total revenues of $3,973 million topped the Zacks Consensus Estimate of $3,754.5 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.
Today, See These 5 Potential Home Runs >>