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Spirit (SAVE) Down on Wider-Than-Expected Q1 Loss & Bleak View
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Shares of Spirit Airlines (SAVE - Free Report) declined 9.7% on Monday, closing the trading session at $3.35 per share. The unimpressive price performance followed the company’s first-quarter 2024 earnings, wherein the Miramar, FL-based carrier reported a wider-than-expected loss. Adding to the woes, revenues were also lower than anticipated. More than the quarterly earnings report, it was the company’s bleak forecast that disappointed investors. Management stated that it would average about 25 grounded aircraft through the rest of 2024. The reduced fleet-size is likely to hamper growth, in turn hurting SAVE’s ability to compete effectively with its rivals as they expand in key markets.
Let’s delve deeper.
Spirit’s quarterly loss (excluding 16 cents from non-recurring items) of $1.46 per share was wider than the Zacks Consensus Estimate of a loss of $1.43. In the year-ago quarter, it had incurred a loss of 82 cents.
Revenues of $1.265 billion missed the Zacks Consensus Estimate of $1.271 billion. The top line declined 6.24% year over year.
Results were hurt by low fleet size due to the grounding of aircraft following engine issues. Per CEO Ted Christie, “The competitive environment remains challenging due to elevated capacity in many of the markets we serve."
Passenger revenues, which accounted for the bulk of the top line (97.9%), decreased 6.6% year over year to $1.239 billion. Other revenues increased 17.6% year over year to $26.2 million. Total operating expenses edged up 0.7% on a year-over-year basis to $1.473 billion, mainly due to a 10.9% increase in salaries, wages and benefits.
Spirit Airlines, Inc. Price, Consensus and EPS Surprise
Load factor (% of seats filled by passengers) declined 0.1 points year over year to 80.7% as capacity expansion (2.1%) outweighed traffic growth during the quarter. Total operating revenue per available seat miles declined 8.2%. Non-fuel unit costs increased 6.2% at SAVE, currently carrying a Zacks Rank #3 (Hold), mainly due to high labor costs. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For second-quarter 2024, management expects total revenues in the $1.32-$1.34 billion range. The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $1.47 billion. Adjusted operating margin is expected to be between -9% and -11%. Fuel gallons consumed are expected to be $147 million. Fuel price per gallon is anticipated to be $2.80. The effective tax rate is projected to be 22.6%. Available seat miles are anticipated to increase 2% from second-quarter 2023 actuals. Available seat miles are anticipated to be flat to up in low-single digits in second-quarter 2024 from second-quarter 2023 actuals.
Q1 Performances of Some Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported first-quarter 2024 earnings (excluding 39 cents from non-recurring items) of 45 cents per share, which comfortably beat the Zacks Consensus Estimate of 36 cents. Earnings increased 80% on a year-over-year basis.
Revenues of $13.75 billion surpassed the Zacks Consensus Estimate of $12.84 billion and increased 7.75% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $12.56 billion, up 6% year over year. Delta expects adjusted earnings of $2.20-$2.50 per share for second-quarter 2024.
CSX Corporation's (CSX - Free Report) first-quarter 2024 earnings per share of 46 cents beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 4% year over year.
Total revenues of $3.68 billion surpassed the Zacks Consensus Estimate of $3.65 billion. The top line decreased 1% year over year due to lower fuel surcharge, a decline in other revenues, lower trucking revenues and reduced export coal prices.
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Spirit (SAVE) Down on Wider-Than-Expected Q1 Loss & Bleak View
Shares of Spirit Airlines (SAVE - Free Report) declined 9.7% on Monday, closing the trading session at $3.35 per share. The unimpressive price performance followed the company’s first-quarter 2024 earnings, wherein the Miramar, FL-based carrier reported a wider-than-expected loss. Adding to the woes, revenues were also lower than anticipated. More than the quarterly earnings report, it was the company’s bleak forecast that disappointed investors. Management stated that it would average about 25 grounded aircraft through the rest of 2024. The reduced fleet-size is likely to hamper growth, in turn hurting SAVE’s ability to compete effectively with its rivals as they expand in key markets.
Let’s delve deeper.
Spirit’s quarterly loss (excluding 16 cents from non-recurring items) of $1.46 per share was wider than the Zacks Consensus Estimate of a loss of $1.43. In the year-ago quarter, it had incurred a loss of 82 cents.
Revenues of $1.265 billion missed the Zacks Consensus Estimate of $1.271 billion. The top line declined 6.24% year over year.
Results were hurt by low fleet size due to the grounding of aircraft following engine issues. Per CEO Ted Christie, “The competitive environment remains challenging due to elevated capacity in many of the markets we serve."
Passenger revenues, which accounted for the bulk of the top line (97.9%), decreased 6.6% year over year to $1.239 billion. Other revenues increased 17.6% year over year to $26.2 million. Total operating expenses edged up 0.7% on a year-over-year basis to $1.473 billion, mainly due to a 10.9% increase in salaries, wages and benefits.
Spirit Airlines, Inc. Price, Consensus and EPS Surprise
Spirit Airlines, Inc. price-consensus-eps-surprise-chart | Spirit Airlines, Inc. Quote
Load factor (% of seats filled by passengers) declined 0.1 points year over year to 80.7% as capacity expansion (2.1%) outweighed traffic growth during the quarter. Total operating revenue per available seat miles declined 8.2%. Non-fuel unit costs increased 6.2% at SAVE, currently carrying a Zacks Rank #3 (Hold), mainly due to high labor costs. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For second-quarter 2024, management expects total revenues in the $1.32-$1.34 billion range. The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $1.47 billion. Adjusted operating margin is expected to be between -9% and -11%. Fuel gallons consumed are expected to be $147 million. Fuel price per gallon is anticipated to be $2.80. The effective tax rate is projected to be 22.6%. Available seat miles are anticipated to increase 2% from second-quarter 2023 actuals. Available seat miles are anticipated to be flat to up in low-single digits in second-quarter 2024 from second-quarter 2023 actuals.
Q1 Performances of Some Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported first-quarter 2024 earnings (excluding 39 cents from non-recurring items) of 45 cents per share, which comfortably beat the Zacks Consensus Estimate of 36 cents. Earnings increased 80% on a year-over-year basis.
Revenues of $13.75 billion surpassed the Zacks Consensus Estimate of $12.84 billion and increased 7.75% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $12.56 billion, up 6% year over year. Delta expects adjusted earnings of $2.20-$2.50 per share for second-quarter 2024.
CSX Corporation's (CSX - Free Report) first-quarter 2024 earnings per share of 46 cents beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 4% year over year.
Total revenues of $3.68 billion surpassed the Zacks Consensus Estimate of $3.65 billion. The top line decreased 1% year over year due to lower fuel surcharge, a decline in other revenues, lower trucking revenues and reduced export coal prices.