Allegiant (ALGT) to Report Q4 Earnings: What's in Store?
Allegiant Travel Company ALGT is scheduled to report fourth-quarter 2023 results on Feb 5, before market open.
ALGT has a promising earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the four preceding quarters and missing in one, the average beat being 80.8%.
Allegiant Travel Company Price and EPS Surprise
Allegiant Travel Company price-eps-surprise | Allegiant Travel Company Quote
The Zacks Consensus Estimate for current-quarter loss per share has widened to 67 cents from 58 cents 60 days ago.
Let us have a quick peek at the factors that are likely to have influenced ALGT’s performance in the quarter under review.
The surge in air travel demand is expected to have boosted passenger revenues in the fourth quarter of 2023.
Air traffic (measured in revenue passenger miles) for scheduled service is likely to increase 3.6% year over year, per our estimates. Our model projects capacity (measured in available seat miles or ASMs) to rise 4.9% from the year-ago reported figure. Our model expects the load factor (percentage of seats filled by passengers) to decrease from 85.3% in fourth-quarter 2022 to 84.3% in the quarter to be reported, with the surge in capacity being more than the increase in traffic.
Fuel expenses are likely to have hurt the bottom line in the soon-to-be reported quarter. Even though fuel prices have come down from the highs witnessed a year ago, the same has remained at an elevated level. Our model estimates the average fuel cost per gallon for the December quarter to be $3.31, higher than the $3.07 reported in third-quarter 2023.
What our model says
Our model predicts an earnings beat for ALGT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
ALGT currently has an Earnings ESP of +77.68% and Zacks Rank #3.
Other Stocks to Consider
Here are a few other stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these also have the right combination of elements to beat on earnings this time around.
Spirit Airlines SAVE currently has an Earnings ESP of +6.03% and a Zacks Rank #3. SAVE will release fourth-quarter 2023 results on Feb 7.
Upbeat air travel demand is expected to have aided the fourth-quarter performance of this Miramar, FL-based ultra-low-cost carrier. Recently, management gave a bullish revenue guidance for fourth-quarter 2023.
Revenues are expected to be $1.32 billion. The new guidance is at the high end of the previously stated $1.28-$1.32 billion. The bullish expectation is due to the fact that bookings for the peak travel period, Christmas and New Year, were strong.
SAVE beat the Zacks Consensus Estimate in three of the last four quarters and missed the mark once, the average beat being 47.75%.
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB, has an Earnings ESP of +0.85% and presently sports a Zacks Rank #1. WAB will release results on Feb 14. You can see the complete list of today’s Zacks #1 Rank stocks here.
WAB has an expected earnings growth rate of 20.77% for fourth-quarter 2023. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average. The Zacks Consensus Estimate for WAB’s fourth-quarter 2023 earnings has improved 3.3% over the past 90 days.
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Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report
Allegiant Travel Company (ALGT) : Free Stock Analysis Report
Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
