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SAVE’s earning surprise history has been promising, having surpassed Zacks Consensus Estimate in three of the four quarters and missing in one, the average beat being 47.75%.
The Zacks Consensus Estimate for fourth-quarter 2023 loss has narrowed in 60 days to $1.48 from $1.59.
Let us discuss the different factors that are likely to have influenced SAVE’s performance in the soon-to-be-reported quarter.
The escalation in air travel demand is expected to have uplifted passenger revenues in the fourth quarter of 2023.
Air traffic (measured in revenue passenger miles) is likely to increase 23% year over year, per our model. We have estimated capacity (measured in available seat miles or ASMs) to increase 14.7% year over year. Our model estimates the load factor (percentage of seats filled by passengers) to increase from 81% in fourth-quarter 2022 to 86.9% in the quarter under evaluation, with the upsurge in capacity being lesser than the increase in traffic.
Fuel expenses are likely to have hurt the bottom line in the quarter under evaluation. Even though fuel prices have fallen from the highs witnessed a year ago, the same has stayed at an elevated threshold. We expect average fuel cost per gallon to be $3.15 in the soon-to-be-reported quarter, suggesting a rise from the $3,10 reported in the third quarter of 2023.
What Our Model Says
Our proven model predicts an earnings beat for Spirit Airlines. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
SAVE currently has an Earnings ESP of +6.03% and a Zacks Rank #3.
Other Stocks to Consider
Here are a few other stocks from the Zacks Airline industry that investors may consider, as our model shows that these also have the right combination of elements to beat on earnings this time around.
The low-cost carrier market is expected to boom in the upcoming years. ULCC is well-positioned to become a pioneer by capitalizing on the market trend.
Allegiant (ALGT - Free Report) currently has an Earnings ESP of +77.68% and a Zacks Rank #3. ALGT is set to report its fourth-quarter 2023 earnings results on Feb 5.
The increase in economic activity of the growing middle class leads to seeking more travel opportunities. ALGT, being a low-cost airline, is more likely to become a budget-friendly option for micro vacations and weekend getaways.
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Spirit Airlines (SAVE) to Report Q4 Earnings: What's in Store?
Spirit Airlines (SAVE - Free Report) is scheduled to report its fourth-quarter 2023 results on Feb 7, after market close.
SAVE’s earning surprise history has been promising, having surpassed Zacks Consensus Estimate in three of the four quarters and missing in one, the average beat being 47.75%.
Spirit Airlines, Inc. Price and EPS Surprise
Spirit Airlines, Inc. price-eps-surprise | Spirit Airlines, Inc. Quote
The Zacks Consensus Estimate for fourth-quarter 2023 loss has narrowed in 60 days to $1.48 from $1.59.
Let us discuss the different factors that are likely to have influenced SAVE’s performance in the soon-to-be-reported quarter.
The escalation in air travel demand is expected to have uplifted passenger revenues in the fourth quarter of 2023.
Air traffic (measured in revenue passenger miles) is likely to increase 23% year over year, per our model. We have estimated capacity (measured in available seat miles or ASMs) to increase 14.7% year over year. Our model estimates the load factor (percentage of seats filled by passengers) to increase from 81% in fourth-quarter 2022 to 86.9% in the quarter under evaluation, with the upsurge in capacity being lesser than the increase in traffic.
Fuel expenses are likely to have hurt the bottom line in the quarter under evaluation. Even though fuel prices have fallen from the highs witnessed a year ago, the same has stayed at an elevated threshold. We expect average fuel cost per gallon to be $3.15 in the soon-to-be-reported quarter, suggesting a rise from the $3,10 reported in the third quarter of 2023.
What Our Model Says
Our proven model predicts an earnings beat for Spirit Airlines. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
SAVE currently has an Earnings ESP of +6.03% and a Zacks Rank #3.
Other Stocks to Consider
Here are a few other stocks from the Zacks Airline industry that investors may consider, as our model shows that these also have the right combination of elements to beat on earnings this time around.
Frontier Group (ULCC - Free Report) currently has an Earnings ESP of +10.39% and a Zacks Rank #3. ULCC is determined to report its fourth-quarter 2023 earnings results on Feb 6. You can see the complete list of today’s Zacks #1 Rank stocks here.
The low-cost carrier market is expected to boom in the upcoming years. ULCC is well-positioned to become a pioneer by capitalizing on the market trend.
Allegiant (ALGT - Free Report) currently has an Earnings ESP of +77.68% and a Zacks Rank #3. ALGT is set to report its fourth-quarter 2023 earnings results on Feb 5.
The increase in economic activity of the growing middle class leads to seeking more travel opportunities. ALGT, being a low-cost airline, is more likely to become a budget-friendly option for micro vacations and weekend getaways.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.