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Allegiant (ALGT) to Report Q1 Earnings: Is a Beat in Store?

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Allegiant Travel Company (ALGT - Free Report) is slated to report first-quarter 2020 financial numbers on May 12.

The Zacks Consensus Estimate for first-quarter 2020 has been revised downward to 58 cents per share from $4.34 in the past 60 days.

Let’s discuss the factors that are likely to get reflected on the upcoming quarterly results

Factors at Play

Thanks to the COVID-19 pandemic, lower passenger revenues are likely to have had a negative impact on the company’s revenues in the to-be-reported quarter. The Zacks Consensus Estimate for passenger revenues suggests a sequential decline of 7.7%. Load factor (% of seats filled by passengers) is also likely to have declined since fall in traffic demand is expected to have outweighed capacity contraction. The Zacks Consensus Estimate for first-quarter revenues is pegged at 408.27 million, which indicates year-over-year decline of 9.6%.

Airline operating cost per available seat miles (CASM) excluding fuel is expected to have declined 2% from December end quarter.Further, lower fuel costs are likely to have supported the bottom line in the quarter to be reported. The Zacks Consensus Estimate for expenses on aircraft fuel indicates a 13.5% fall from the figure reported in fourth-quarter 2019.

 

What Does the Zacks Model Say?

Our proven model predicts an earnings beat for Allegiant this time around. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Allegiant has an Earnings ESP of 0 .69% since both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 58 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Allegiant carries a Zacks Rank #3, currently.

Highlights of Q4 Earnings

In the last reported quarter,Allegiant’s earnings of $3.72 per share missed the Zacks Consensus Estimate of $3.87. Moreover, quarterly earnings increased 45.3% on a year-over-year basis. Quarterly revenues of $461.1 million beat the consensus mark of $460.2 billion and increased 11.9% on a year-over-year basis.

Stocks to Consider

Investors may consider Baidu, Inc. (BIDU - Free Report) , Covetrus, Inc. (CVET - Free Report) and PBF Energy Inc. (PBF - Free Report) as these stocks have the right combination of elements to beat on earnings in this reporting cycle.

Baidu has an Earnings ESP of +4.45% and a Zacks Rank #3. The company will report first-quarter 2020 earnings on May 18.

Covetru has an Earnings ESP of +41.67% and a Zacks Rank #3. The company will report first-quarter 2020 earnings on May 14.

PBF Energy has an Earnings ESP of +1.90% and a Zacks Rank #3. The company will report first-quarter 2020 earnings on May 15.

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