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Allegiant Travel (ALGT) Q1 Earnings Top Estimates, Up Y/Y

Zacks Equity Research

Allegiant Travel Company’s ALGT earnings (excluding 46 cents from non-recurring items) of $3.98 per share outpaced the Zacks Consensus Estimate of $3.88. The bottom line also improved year over year.

Although total operating revenues increased 6.2% year over year to $451.6 million, it missed the consensus mark of $454.5 million. The top line was primarily driven by a 5.8% rise in passenger revenues.

Systemwide air traffic (measured in revenue passenger miles: RPMs) in the quarter under review rose 4.3% and capacity (measured in available seat miles: ASMs) expanded 4.9% year over year. Consequently, load factor (percentage of seats filled by passengers) was 82.6%, down 40 basis points as capacity expansion outweighed traffic growth.

Operating cost per available seat miles (CASM) excluding fuel increased 3.7%. However, total scheduled service revenue per available seat miles (TRASM) inched up 1.8% to 11.50 cents. Average fuel cost per gallon (scheduled) dipped 1.8% to $2.13 in the quarter.

During the first quarter, Allegiant rewarded shareholders with a cash dividend worth $11.4 million.

Allegiant Travel Company Price, Consensus and EPS Surprise


Allegiant Travel Company Price, Consensus and EPS Surprise | Allegiant Travel Company Quote

2019 Outlook

The Zacks Rank #3 (Hold) company anticipates earnings of $13.25-$14.75 per share. The Zacks Consensus Estimate for the same stands at $13.18. Fuel cost per gallon is now anticipated to be $2.26 compared with $2.10 expected earlier. Also, systemwide capacity is estimated to rise 7.5-9.5% year over year. Meanwhile, non-fuel unit costs are expected to dip 1.5-3.5% in the year. Capital expenditures are projected in the $400-$410 million band in the current year. 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 keenly awaiting first-quarter earnings reports from key players, such as Expeditors International of Washington, Inc. EXPD, C.H. Robinson Worldwide, Inc. CHRW and Air Lease Corporation AL. While C.H. Robinson will report first-quarter earnings on Apr 30, Expeditors and Air Lease will announce the same on May 7 and May 9, respectively.

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Allegiant Travel Company (ALGT) : Free Stock Analysis Report
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C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report
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