Allegiant Travel Company (ALGT - Free Report) reported first-quarter 2020 earnings (excluding $4.13 from non-recurring items) of $2.05 per share, which surpassed the Zacks Consensus Estimate of 58 cents per share. However, the bottom line fell 48.5% year over year due to lower revenues stemming from falling demand for air travel. Quarterly revenues came in at $409.2 million, which beat the Zacks Consensus Estimate of $408.3 million. However, the top line declined 9.39% year over year on the back of a 9.8% fall in passenger revenues.
Notably, quarterly earnings (airline operations adjusted for tax) fell to $1.89 per share.
Quarter in Details
Air traffic (measured in revenue passenger miles or RPMs) for scheduled service fell 8.3% in the quarter under review. Capacity (measured in available seat miles or ASMs) increased 4.3% year over year. Load factor (percentage of seats filled by passengers) was 73.8%, down 1010 basis points as capacity expanded while traffic declined.
Airline operating cost per available seat miles (CASM) excluding fuel rose 1.7% year over year. Average fuel cost per gallon (scheduled) declined 12.2% to $1.87 in the quarter. Moreover, total scheduled service passenger revenue per available seat miles (TRASM) fell 13.4% to 9.96 cents.
Furthermore, the board of directors of this Zacks Rank #3(Hold) company has suspended all share repurchase and dividends payouts due to the uncertain economic conditions stemming from the pandemic.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Like Allegiant Travel, there are a few companies in the Zacks Transportation sector like Werner Enterprises, Inc. (WERN - Free Report) , Union Pacific Corporation (UNP - Free Report) and Canadian Pacific Railway Limited (CP - Free Report) that have surpassed earnings estimates in first-quarter 2020.
Werner Enterprises reported first-quarter 2020 earnings per share (excluding 7 cents from non-recurring items) of 40 cents, which surpassed the Zacks Consensus Estimate of 35 cents. However, the bottom line declined 23.1% year over year.
Union Pacific’s first-quarter 2020 earnings of $2.15 per share surpassed the Zacks Consensus Estimate of $1.86. Moreover, the bottom line increased 11.4% on a year-over-year basis.
Canadian Pacific’s first-quarter 2020 earnings (excluding $1.08 from non-recurring items) of $3.3 (C$4.42) per share surpassed the Zacks Consensus Estimate of $2.86. Quarterly earnings surged more than 55% year over year.
All the stocks carry a Zacks Rank #3.
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