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ALGT has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the preceding four quarters (one miss and one meet), the average beat being 79.8%. The Zacks Consensus Estimate for earnings has improved 20.1% to $3.46 per share over the past 60 days.
Let’s have a look at the factors likely to have influenced ALGT’s performance in the quarter under review.
Improved air-travel demand is expected to have aided passenger revenues in second-quarter 2023. We expect passenger revenues to have risen 2.6% from second-quarter 2022 actuals. The Zacks Consensus Estimate for total revenues is pegged at $658.3 million, up 4.5% year over year.
Air traffic (measured in revenue passenger miles) for scheduled service is likely to have decreased 10.3% year over year, per our estimates. Our model projects capacity (measured in available seat miles or ASMs) to have tumbled 6.4% from the year-ago reported figure. We expect the load factor (percentage of seats filled by passengers) to have decreased from 87.3% to 83.7% in the quarter to be reported, as traffic plunge is expected to have outweighed capacity decline.
Fuel expenses are likely to have affected the bottom line. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level. Or model estimates the average fuel cost per gallon for the June quarter to be $3.18.
What Our Model Says
Our proven model does not conclusively predict 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. However, this is absolutely not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
ALGT has an Earnings ESP of 0.00% and a Zacks Rank #2.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this time around.
SkyWest, Inc. (SKYW - Free Report) currently has an Earnings ESP of +16.94% and a Zacks Rank #3. It will release second-quarter 2023 results on Jul 27.
SkyWest's fleet-modernization efforts are commendable as well.
Copa Holdings has an expected earnings growth rate of more than 100% for second-quarter 2023. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average. The Zacks Consensus Estimate for CPA’s second-quarter 2023 earnings has been revised upward by 94% in the past 90 days.
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What's in the Offing for Allegiant (ALGT) in Q2 Earnings?
Allegiant Travel Company (ALGT - Free Report) is scheduled to report second-quarter 2023 results on Aug 2 before market open.
ALGT has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the preceding four quarters (one miss and one meet), the average beat being 79.8%. The Zacks Consensus Estimate for earnings has improved 20.1% to $3.46 per share over the past 60 days.
Let’s have a look at the factors likely to have influenced ALGT’s performance in the quarter under review.
Allegiant Travel Company Price and EPS Surprise
Allegiant Travel Company price-eps-surprise | Allegiant Travel Company Quote
Improved air-travel demand is expected to have aided passenger revenues in second-quarter 2023. We expect passenger revenues to have risen 2.6% from second-quarter 2022 actuals. The Zacks Consensus Estimate for total revenues is pegged at $658.3 million, up 4.5% year over year.
Air traffic (measured in revenue passenger miles) for scheduled service is likely to have decreased 10.3% year over year, per our estimates. Our model projects capacity (measured in available seat miles or ASMs) to have tumbled 6.4% from the year-ago reported figure. We expect the load factor (percentage of seats filled by passengers) to have decreased from 87.3% to 83.7% in the quarter to be reported, as traffic plunge is expected to have outweighed capacity decline.
Fuel expenses are likely to have affected the bottom line. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level. Or model estimates the average fuel cost per gallon for the June quarter to be $3.18.
What Our Model Says
Our proven model does not conclusively predict 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. However, this is absolutely not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
ALGT has an Earnings ESP of 0.00% and a Zacks Rank #2.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this time around.
SkyWest, Inc. (SKYW - Free Report) currently has an Earnings ESP of +16.94% and a Zacks Rank #3. It will release second-quarter 2023 results on Jul 27.
SkyWest's fleet-modernization efforts are commendable as well.
Copa Holdings, S.A. (CPA - Free Report) has an Earnings ESP of +0.82% and a Zacks Rank #2. CPA is slated to release results on Aug 9. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of more than 100% for second-quarter 2023. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average. The Zacks Consensus Estimate for CPA’s second-quarter 2023 earnings has been revised upward by 94% in the past 90 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.