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) Reports Wider-Than-Expected Loss in Q1
Read MoreHide Full Article
Allegiant Travel Company (ALGT - Free Report) incurred first-quarter 2021 loss (excluding $4.00 from non-recurring items) of $3.58 per share, wider than the Zacks Consensus Estimate of a loss of $3.17. 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 $2.05 per share.
Moreover, operating revenues of $279.1 million plunged 31.8% year over year and missed the Zacks Consensus Estimate of $284.3 million. The downside was due to 32.3% fall in passenger revenues, which accounted for bulk (92%) of the top line.
Allegiant Travel Company Price, Consensus and EPS Surprise
Air traffic (measured in revenue passenger miles or RPMs) for scheduled service declined 25.9% in the quarter under review. Capacity (measured in available seat miles or ASMs) declined 1.1% year over year. Consequently, load factor (percentage of seats filled by passengers) deteriorated 1850 basis points to 55.3% in the reported quarter as traffic plunge outweighed capacity contraction.
Operating cost per available seat miles (CASM) excluding fuel dipped 60.3% year over year. Average fuel cost per gallon (scheduled) declined 0.5% to $1.86 in the quarter. Moreover, total scheduled service passenger revenue per available seat miles (TRASM) fell 30.8% to 6.89 cents.
Liquidity
As of Mar 31, 2021, Allegiant Travel’s unrestricted cash and investments totalled $301.6 million compared with $152.8 million at the end of December 2020. Long-term debt and finance lease obligations (net of current maturities and related costs) came in at $1,459.6 million, up 1.2% from 2020-end levels.
Q2 Expectations
For the second quarter, ASM (for scheduled service as well as total system) are expected to increase between 2% to 6%, compared to second-quarter 2019 figures.
Scheduled service revenue (excluding fixed fee and other revenue) are expected to go down 6-10%, from second-quarter 2019 figures.
Fuel cost per gallon is expected to be at $1.99.
2021 Expectations
For 2021, aircraft, engines and induction costs are kept unchanged from its previous expectation of $115-$125 million.
Capitalized airbus deferred heavy maintenance is kept unchanged from its previous expectation of $50-$60 million.
Other capital expenditures are now expected between $40 million to $50 million (previous expectation: $20 million to $30 million).
Interest expenses are now expected in the range of $65-$70 million (previous expectation: $50-$55 million).
Let’s glance through some of the other recently-released earnings reports from companies within the Zacks Transportation sector.
Canadian National Railway Co. (CNI - Free Report) reported first-quarter 2021 earnings (excluding 11 cents from non-recurring items) of 97 cents per share (C$1.23), missing the Zacks Consensus Estimate of 99 cents. Quarterly revenues of $2,791.6 million (C$3,535 million) lagged the Zacks Consensus Estimate of $2,813.1 million.
Landstar System (LSTR - Free Report) reported first-quarter 2021 earnings of $2.01 per share, surpassing the Zacks Consensus Estimate of $1.61. Revenues of $1,287.5 million outperformed the Zacks Consensus Estimate of $1,142.5 million.
Southwest Airlines (LUV - Free Report) incurred a loss of $1.72 per share (excluding $1.91 from non-recurring items) in the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.82. Moreover, operating revenues of $2,052 million surpassed the Zacks Consensus Estimate of $2,031.7 million.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Bigstock
Allegiant (ALGT) Reports Wider-Than-Expected Loss in Q1
Allegiant Travel Company (ALGT - Free Report) incurred first-quarter 2021 loss (excluding $4.00 from non-recurring items) of $3.58 per share, wider than the Zacks Consensus Estimate of a loss of $3.17. 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 $2.05 per share.
Moreover, operating revenues of $279.1 million plunged 31.8% year over year and missed the Zacks Consensus Estimate of $284.3 million. The downside was due to 32.3% fall in passenger revenues, which accounted for bulk (92%) of the top line.
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 25.9% in the quarter under review. Capacity (measured in available seat miles or ASMs) declined 1.1% year over year. Consequently, load factor (percentage of seats filled by passengers) deteriorated 1850 basis points to 55.3% in the reported quarter as traffic plunge outweighed capacity contraction.
Operating cost per available seat miles (CASM) excluding fuel dipped 60.3% year over year. Average fuel cost per gallon (scheduled) declined 0.5% to $1.86 in the quarter. Moreover, total scheduled service passenger revenue per available seat miles (TRASM) fell 30.8% to 6.89 cents.
Liquidity
As of Mar 31, 2021, Allegiant Travel’s unrestricted cash and investments totalled $301.6 million compared with $152.8 million at the end of December 2020. Long-term debt and finance lease obligations (net of current maturities and related costs) came in at $1,459.6 million, up 1.2% from 2020-end levels.
Q2 Expectations
For the second quarter, ASM (for scheduled service as well as total system) are expected to increase between 2% to 6%, compared to second-quarter 2019 figures.
Scheduled service revenue (excluding fixed fee and other revenue) are expected to go down 6-10%, from second-quarter 2019 figures.
Fuel cost per gallon is expected to be at $1.99.
2021 Expectations
For 2021, aircraft, engines and induction costs are kept unchanged from its previous expectation of $115-$125 million.
Capitalized airbus deferred heavy maintenance is kept unchanged from its previous expectation of $50-$60 million.
Other capital expenditures are now expected between $40 million to $50 million (previous expectation: $20 million to $30 million).
Interest expenses are now expected in the range of $65-$70 million (previous expectation: $50-$55 million).
Zacks Rank
Allegiant Travel currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Sectorial Snapshots
Let’s glance through some of the other recently-released earnings reports from companies within the Zacks Transportation sector.
Canadian National Railway Co. (CNI - Free Report) reported first-quarter 2021 earnings (excluding 11 cents from non-recurring items) of 97 cents per share (C$1.23), missing the Zacks Consensus Estimate of 99 cents. Quarterly revenues of $2,791.6 million (C$3,535 million) lagged the Zacks Consensus Estimate of $2,813.1 million.
Landstar System (LSTR - Free Report) reported first-quarter 2021 earnings of $2.01 per share, surpassing the Zacks Consensus Estimate of $1.61. Revenues of $1,287.5 million outperformed the Zacks Consensus Estimate of $1,142.5 million.
Southwest Airlines (LUV - Free Report) incurred a loss of $1.72 per share (excluding $1.91 from non-recurring items) in the first quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of $1.82. Moreover, operating revenues of $2,052 million surpassed the Zacks Consensus Estimate of $2,031.7 million.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>