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.
Spirit Airlines (SAVE) Down 2% Since Q3 Earnings Release
Read MoreHide Full Article
Spirit Airlines, Inc. (SAVE - Free Report) stock has declined 2% since its third-quarter 2022 earnings release on Oct 26. Quarterly earnings were 3 cents per share in contrast to the Zacks Consensus Estimate of a loss of 9 cents and the year-ago quarter’s loss of 69 cents.
Revenues of $1,343.2 million missed the Zacks Consensus Estimate of $1352.6 million but improved 46% year over year on the back of improving air-travel demand and increased flight volume and higher operating yields.
In third-quarter 2022, passenger revenues, which accounted for the bulk of the top line (98.4%), increased 45.7% year over year to $1,322.08 million. Other revenues increased 37% year over year to $21.1 million.
Spirit Airlines, Inc. Price, Consensus and EPS Surprise
All comparisons (in %) are presented below on a year-over-year basis.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) at Spirit rose 17.8% in the reported quarter. To cater to this increased demand, capacity (measured in available seat miles) expanded to 9.7%. The load factor increased 5.7 points to 83.3% in the third quarter of 2022. Total operating revenue per available seat miles (TRASM) jumped 32.7% to 11.07 cents in the reported quarter. The average yield increased 23.6% to 13.29 cents.
Adjusted operating expenses (excluding fuel) escalated 56% to $1,331.8 million. The average fuel cost per gallon in the reported quarter rose to $3.82, up 78.5% year over year. Fuel gallons consumed skyrocketed 9.9% to $133.14 million, reflecting the usage of more planes to cater to upbeat air-travel demand. Adjusted cost per available seat miles (CASM), excluding fuel, increased 2.3% in the reported quarter.
Spirit took the delivery of four new A320 neo aircraft during the reported quarter. The total number of aircraft in its fleet at the end of the reported quarter was 184, up 35.3% from fourth-quarter 2019.
The company exited the reported quarter with unrestricted cash, cash equivalents and short-term investments, and the liquidity available under the carrier’s revolving credit facility of $1.3 billion. Capital expenditures for the quarter were $190.4 million, primarily related to the purchase of spare parts.
Q4 Outlook
SAVE expects adjusted operating expenses for the fourth quarter in the range of $1,365-$1,375 million. The adjusted operating margin is expected to be in the range of 1-3%. Fuel gallons consumed are expected to be $141.6 million in the fourth quarter. The fuel price per gallon is anticipated to be $3.55. The effective tax rate is expected to be 21%. Available seat miles are anticipated to increase roughly 24.5% from fourth-quarter 2019 actuals.
Delta AirLines’ (DAL - Free Report) third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by the high air-travel demand, total revenues increased more than 52% on a year-over-year basis.
United Airlines’ (UAL - Free Report) third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. An upbeat in air-travel demand aided results. In the year-ago quarter, UAL incurred a loss of $1.02 per share when air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to an upbeat in air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% from third-quarter 2019 (pre-coronavirus) levels.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.JBHT’squarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.
Total operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across — Dedicated Contract Services, Intermodal, Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Spirit Airlines (SAVE) Down 2% Since Q3 Earnings Release
Spirit Airlines, Inc. (SAVE - Free Report) stock has declined 2% since its third-quarter 2022 earnings release on Oct 26. Quarterly earnings were 3 cents per share in contrast to the Zacks Consensus Estimate of a loss of 9 cents and the year-ago quarter’s loss of 69 cents.
Revenues of $1,343.2 million missed the Zacks Consensus Estimate of $1352.6 million but improved 46% year over year on the back of improving air-travel demand and increased flight volume and higher operating yields.
In third-quarter 2022, passenger revenues, which accounted for the bulk of the top line (98.4%), increased 45.7% year over year to $1,322.08 million. Other revenues increased 37% year over year to $21.1 million.
Spirit Airlines, Inc. Price, Consensus and EPS Surprise
Spirit Airlines, Inc. price-consensus-eps-surprise-chart | Spirit Airlines, Inc. Quote
All comparisons (in %) are presented below on a year-over-year basis.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) at Spirit rose 17.8% in the reported quarter. To cater to this increased demand, capacity (measured in available seat miles) expanded to 9.7%. The load factor increased 5.7 points to 83.3% in the third quarter of 2022. Total operating revenue per available seat miles (TRASM) jumped 32.7% to 11.07 cents in the reported quarter. The average yield increased 23.6% to 13.29 cents.
Adjusted operating expenses (excluding fuel) escalated 56% to $1,331.8 million. The average fuel cost per gallon in the reported quarter rose to $3.82, up 78.5% year over year. Fuel gallons consumed skyrocketed 9.9% to $133.14 million, reflecting the usage of more planes to cater to upbeat air-travel demand. Adjusted cost per available seat miles (CASM), excluding fuel, increased 2.3% in the reported quarter.
Spirit took the delivery of four new A320 neo aircraft during the reported quarter. The total number of aircraft in its fleet at the end of the reported quarter was 184, up 35.3% from fourth-quarter 2019.
The company exited the reported quarter with unrestricted cash, cash equivalents and short-term investments, and the liquidity available under the carrier’s revolving credit facility of $1.3 billion. Capital expenditures for the quarter were $190.4 million, primarily related to the purchase of spare parts.
Q4 Outlook
SAVE expects adjusted operating expenses for the fourth quarter in the range of $1,365-$1,375 million. The adjusted operating margin is expected to be in the range of 1-3%. Fuel gallons consumed are expected to be $141.6 million in the fourth quarter. The fuel price per gallon is anticipated to be $3.55. The effective tax rate is expected to be 21%. Available seat miles are anticipated to increase roughly 24.5% from fourth-quarter 2019 actuals.
Currently, Spirit Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Transportation Companies
Delta AirLines’ (DAL - Free Report) third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by the high air-travel demand, total revenues increased more than 52% on a year-over-year basis.
United Airlines’ (UAL - Free Report) third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. An upbeat in air-travel demand aided results. In the year-ago quarter, UAL incurred a loss of $1.02 per share when air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to an upbeat in air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% from third-quarter 2019 (pre-coronavirus) levels.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.JBHT’squarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.
Total operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across — Dedicated Contract Services, Intermodal, Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.