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Shares of Spirit Airlines (SAVE - Free Report) have been on an uptrend ever since it released a bullish fourth-quarter 2019 update on Jan 15. In fact, shares of this ultra low-cost carrier have gained 8.2% over the past two trading sessions, and are currently trading at $42.93, a near six-month high.
Spirit Airlines’ Revised Guidance
Spirit Airlines stated at an investor update that it now expects fourth-quarter total revenue per available seat mile (TRASM: a key measure of unit revenues) to have declined 3.6% from fourth-quarter 2018’s reported figure of 9.59 cents. This is an improvement from its outlook issued in October 2019, when the company estimated fourth-quarter 2019 TRASM decline in the 4.5-6.5% range.
The company also noted that fourth-quarter revenues are inclusive of $7.2 million, pertaining to the reclamation of over-remitted Federal Excise Tax. Excluding this amount, fourth-quarter 2019 TRASM are likely to have declined 4.3% year over year. Notably, the company expects to release detailed fourth-quarter results on Feb 5. The TRASM is a measure of sales relative to capacity for a carrier.
Additionally, the new guidance with respect to costs was favorable. The company expects fourth-quarter non-fuel unit costs (on an adjusted basis) to have increased 3.3% from the fourth-quarter 2018’s reported figure of 5.49 cents. Spirit Airlines had earlier predicted an increase between 3.5% and 4.5% for adjusted non-fuel unit costs.
Fuel cost per gallon is likely to have declined to $2.10 in the to-be-reported quarter compared to the year-ago figure of $2.26. The fourth-quarter 2019 effective tax rate (adjusted) is projected at 24%.
Shares of Delta, AZUL and GOL Linhas gained more than 28%, 51% and 39%, respectively, in a year’s time.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Spirit Airlines (SAVE) Stock Nears 6-Month High: Here's Why
Shares of Spirit Airlines (SAVE - Free Report) have been on an uptrend ever since it released a bullish fourth-quarter 2019 update on Jan 15. In fact, shares of this ultra low-cost carrier have gained 8.2% over the past two trading sessions, and are currently trading at $42.93, a near six-month high.
Spirit Airlines’ Revised Guidance
Spirit Airlines stated at an investor update that it now expects fourth-quarter total revenue per available seat mile (TRASM: a key measure of unit revenues) to have declined 3.6% from fourth-quarter 2018’s reported figure of 9.59 cents. This is an improvement from its outlook issued in October 2019, when the company estimated fourth-quarter 2019 TRASM decline in the 4.5-6.5% range.
The company also noted that fourth-quarter revenues are inclusive of $7.2 million, pertaining to the reclamation of over-remitted Federal Excise Tax. Excluding this amount, fourth-quarter 2019 TRASM are likely to have declined 4.3% year over year. Notably, the company expects to release detailed fourth-quarter results on Feb 5. The TRASM is a measure of sales relative to capacity for a carrier.
Additionally, the new guidance with respect to costs was favorable. The company expects fourth-quarter non-fuel unit costs (on an adjusted basis) to have increased 3.3% from the fourth-quarter 2018’s reported figure of 5.49 cents. Spirit Airlines had earlier predicted an increase between 3.5% and 4.5% for adjusted non-fuel unit costs.
Fuel cost per gallon is likely to have declined to $2.10 in the to-be-reported quarter compared to the year-ago figure of $2.26. The fourth-quarter 2019 effective tax rate (adjusted) is projected at 24%.
Zacks Rank & Key Picks
Spirit Airlines currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the Zacks Airline industry are Delta Air Lines (DAL - Free Report) , AZUL (AZUL - Free Report) and GOL Linhas , sporting a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Delta, AZUL and GOL Linhas gained more than 28%, 51% and 39%, respectively, in a year’s time.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>