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Allegiant Travel (ALGT) Earnings Miss, Revenues Beat in Q3
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Allegiant Travel Company (ALGT - Free Report) reported third-quarter earnings of 94 cents per share, which missed the Zacks Consensus Estimate of $1.02. The bottom line declined mainly due to high fuel costs on a year-over-year basis.
Quarterly revenues increased 12.3% year over year to $393.1 million, surpassing the Zacks Consensus Estimate of $389.5 million. Moreover, the top line was primarily driven by a 12.6% rise in passenger revenues.
Systemwide air traffic (measured in revenue passenger miles) in the quarter under review rose 13.6% and capacity (measured in available seat miles) increased 13.2% year over year. Load factor (percentage of seats filled by passengers) was 83.4%, up 40 basis points, as capacity expansion was outweighed by traffic growth.
Cost per available seat miles (CASM) excluding fuel fell 0.7%. Total scheduled service revenue per available seat miles (TRASM) also declined 0.2% to 10.64 cents. Average fuel cost per gallon (systemwide) surged 33.1% to $2.41 in the quarter.
In the first nine months of 2018, Allegiant rewarded shareholders with dividend worth $33.9 million. Furthermore, the board of directors has cleared a dividend of 70 cents per share, which is payable on Dec 5, 2018 to shareholders of record as of Nov 23, 2018.
Allegiant Travel Company Price, Consensus and EPS Surprise
Scheduled and system ASMs in the quarter are expected to increase between 4% and 6% compared with the prior-year quarter’s tally.
Revised 2018 Outlook
The company expects fuel cost per gallon of $2.38. The previous forecast for the metric was $2.35 per gallon. Additionally, effective tax rate is now anticipated between 18% and 19% compared with the previous guidance of 21-22%. Further, projection for capital expenditures is unchanged at $300 million. System capacity is likely to increase between 9.5% and 10.5%. The previous forecast for this metric was 9-11%.
This Zacks Rank #3 (Hold) company expects earnings per share in the band of $9-$10 for the current year, unchanged from the previous guidance. The Zacks Consensus Estimate for 2018 bottom line is pegged at $9.57.
Investors interested in the broader Transportation Sector are awaiting third-quarter 2018 earnings reports from key players like Genesee & Wyoming Inc. , Atlas Air Worldwide Holdings, Inc. and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) . Genesee & Wyoming and C.H. Robinson will release results on Oct 30. Atlas Air Worldwide will announce the same on Nov 1.
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Allegiant Travel (ALGT) Earnings Miss, Revenues Beat in Q3
Allegiant Travel Company (ALGT - Free Report) reported third-quarter earnings of 94 cents per share, which missed the Zacks Consensus Estimate of $1.02. The bottom line declined mainly due to high fuel costs on a year-over-year basis.
Quarterly revenues increased 12.3% year over year to $393.1 million, surpassing the Zacks Consensus Estimate of $389.5 million. Moreover, the top line was primarily driven by a 12.6% rise in passenger revenues.
Systemwide air traffic (measured in revenue passenger miles) in the quarter under review rose 13.6% and capacity (measured in available seat miles) increased 13.2% year over year. Load factor (percentage of seats filled by passengers) was 83.4%, up 40 basis points, as capacity expansion was outweighed by traffic growth.
Cost per available seat miles (CASM) excluding fuel fell 0.7%. Total scheduled service revenue per available seat miles (TRASM) also declined 0.2% to 10.64 cents. Average fuel cost per gallon (systemwide) surged 33.1% to $2.41 in the quarter.
In the first nine months of 2018, Allegiant rewarded shareholders with dividend worth $33.9 million. Furthermore, the board of directors has cleared a dividend of 70 cents per share, which is payable on Dec 5, 2018 to shareholders of record as of Nov 23, 2018.
Allegiant Travel Company Price, Consensus and EPS Surprise
Allegiant Travel Company Price, Consensus and EPS Surprise | Allegiant Travel Company Quote
Q4 Outlook
Scheduled and system ASMs in the quarter are expected to increase between 4% and 6% compared with the prior-year quarter’s tally.
Revised 2018 Outlook
The company expects fuel cost per gallon of $2.38. The previous forecast for the metric was $2.35 per gallon. Additionally, effective tax rate is now anticipated between 18% and 19% compared with the previous guidance of 21-22%. Further, projection for capital expenditures is unchanged at $300 million. System capacity is likely to increase between 9.5% and 10.5%. The previous forecast for this metric was 9-11%.
This Zacks Rank #3 (Hold) company expects earnings per share in the band of $9-$10 for the current year, unchanged from the previous guidance. The Zacks Consensus Estimate for 2018 bottom line is pegged at $9.57.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the broader Transportation Sector are awaiting third-quarter 2018 earnings reports from key players like Genesee & Wyoming Inc. , Atlas Air Worldwide Holdings, Inc. and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) . Genesee & Wyoming and C.H. Robinson will release results on Oct 30. Atlas Air Worldwide will announce the same on Nov 1.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>