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Spirit Airlines (SAVE) Stock Down 6.4% Since Q4 Earnings
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Spirit Airlines’ (SAVE - Free Report) shares have declined 6.4% since its fourth-quarter 2023 earnings release on Feb 8. Quarterly loss (excluding 32 cents from non-recurring items) of $1.36 per share was narrower than the Zacks Consensus Estimate of a loss of $1.41. In the year-ago quarter, SAVE reported earnings of 12 cents per share.
Revenues of $1,321.8 million beat the Zacks Consensus Estimate of $1,320.1 million. However, the top line declined 5% year over year. In the fourth quarter, passenger revenues, which accounted for the bulk of the top line (98.1%), decreased 5.3% year over year to $1,296.71 million, highlighting the slowdown in domestic travel. Other revenues increased 15.7% year over year to $25.05 million.
Spirit Airlines, Inc. Price, Consensus and EPS Surprise
Air traffic (measured in revenue passenger miles) grew 13.4% year over year in the quarter under review. Capacity (measured in available seat miles or ASMs) grew 14.8% from the year-ago number. The load factor (percentage of seats filled by passengers) inched down from 81% to 80.1% in the reported quarter, as traffic did not outperform capacity.
Adjusted cost per available seat miles, excluding fuel, jumped 3.5% year over year to 6.75 cents. Average fuel cost per gallon decreased 10.4% to $3.18. Total operating revenue per available seat miles fell 17.3% year over year to 8.94 cents.
During the fourth quarter of 2023, Spirit took delivery of four new aircraft (two A320neos and two A321neos) and retired one A319ceo aircraft. SAVE ended 2023 with 205 aircraft in its fleet.
For first-quarter 2024, management expects total revenues in the range of $1.25-$1.28 billion. Adjusted operating margin is expected to be between -15% and -12%. Fuel gallons consumed are expected to be $140 million. Fuel price per gallon is anticipated to be $2.90. The effective tax rate is projected to be 22.6%.
Available seat miles are anticipated to increase 1.5% from first-quarter 2023 actuals. Available seat miles for 2024 are expected to be between flat and mid-single-digit growth from the 2023 actuals.
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 EPS of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines (DAL - Free Report) has reported fourth-quarter 2023 EPS (excluding $1.88 from non-recurring items) of $1.28, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported fourth-quarter 2023 EPS (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (accounting for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.
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Spirit Airlines (SAVE) Stock Down 6.4% Since Q4 Earnings
Spirit Airlines’ (SAVE - Free Report) shares have declined 6.4% since its fourth-quarter 2023 earnings release on Feb 8. Quarterly loss (excluding 32 cents from non-recurring items) of $1.36 per share was narrower than the Zacks Consensus Estimate of a loss of $1.41. In the year-ago quarter, SAVE reported earnings of 12 cents per share.
Revenues of $1,321.8 million beat the Zacks Consensus Estimate of $1,320.1 million. However, the top line declined 5% year over year. In the fourth quarter, passenger revenues, which accounted for the bulk of the top line (98.1%), decreased 5.3% year over year to $1,296.71 million, highlighting the slowdown in domestic travel. Other revenues increased 15.7% year over year to $25.05 million.
Spirit Airlines, Inc. Price, Consensus and EPS Surprise
Spirit Airlines, Inc. price-consensus-eps-surprise-chart | Spirit Airlines, Inc. Quote
Air traffic (measured in revenue passenger miles) grew 13.4% year over year in the quarter under review. Capacity (measured in available seat miles or ASMs) grew 14.8% from the year-ago number. The load factor (percentage of seats filled by passengers) inched down from 81% to 80.1% in the reported quarter, as traffic did not outperform capacity.
Adjusted cost per available seat miles, excluding fuel, jumped 3.5% year over year to 6.75 cents. Average fuel cost per gallon decreased 10.4% to $3.18. Total operating revenue per available seat miles fell 17.3% year over year to 8.94 cents.
During the fourth quarter of 2023, Spirit took delivery of four new aircraft (two A320neos and two A321neos) and retired one A319ceo aircraft. SAVE ended 2023 with 205 aircraft in its fleet.
For first-quarter 2024, management expects total revenues in the range of $1.25-$1.28 billion. Adjusted operating margin is expected to be between -15% and -12%. Fuel gallons consumed are expected to be $140 million. Fuel price per gallon is anticipated to be $2.90. The effective tax rate is projected to be 22.6%.
Available seat miles are anticipated to increase 1.5% from first-quarter 2023 actuals. Available seat miles for 2024 are expected to be between flat and mid-single-digit growth from the 2023 actuals.
SAVE carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 EPS of $1.47 missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year.
Delta Air Lines (DAL - Free Report) has reported fourth-quarter 2023 EPS (excluding $1.88 from non-recurring items) of $1.28, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
United Airlines Holdings, Inc. (UAL - Free Report) reported fourth-quarter 2023 EPS (excluding 19 cents from non-recurring items) of $2.00, which outpaced the Zacks Consensus Estimate of $1.61 but declined 18.7% year over year.
Operating revenues of $13,626 million beat the Zacks Consensus Estimate of $13,546.8 million. The top line increased 9.9% year over year due to upbeat air-travel demand. This was driven by a 10.9% rise in passenger revenues (accounting for 91.1% of the top line) to $12,421 million. Almost 41,779 passengers traveled on UAL flights in the fourth quarter.