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Allegiant Tops Q4 Earnings and Revenue Estimates, Improves Y/Y
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Allegiant Travel Company (ALGT - Free Report) has reported fourth-quarter 2024 earnings per share (EPS) of $2.10, which surpassed the Zacks Consensus Estimate of $1.88. The company reported earnings of 11 cents per share in the year-ago quarter.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Operating revenues of $627.7 million surpassed the Zacks Consensus Estimate of $624.8 million and improved 2.7% on a year-over-year basis.
Allegiant Travel Company Price, Consensus and EPS Surprise
Passenger revenues, which accounted for the bulk (88.2%) of the top line, fell 0.4% on a year-over-year basis. Air traffic (measured in revenue passenger miles) for scheduled services dipped 2.2% year over year in the quarter under review. Capacity (measured in available seat miles or ASMs) grew 1.7% from the year-ago number. The load factor (percentage of seats filled by passengers) decreased to 80.2% in the reported quarter from 83.3% in the year-ago quarter, as traffic did not outperform capacity.
Operating costs per available seat miles, excluding fuel, fell 2.5% year over year to 8.29 cents. The average fuel cost per gallon (scheduled) decreased 22.2% year over year to $2.49. Total scheduled service passenger revenue per available seat miles fell to 13.01 cents from 13.16 cents a year ago.
ALGT’s Liquidity
As of Dec. 31, 2024, Allegiant’s total unrestricted cash and investments were $832.8 million compared with $804.6 million at the prior-quarter end. Long-term debt and finance lease obligations (net of current maturities and related costs) totaled $1.61 billion compared with $1.77 billion at the prior-quarter end.
Allegiant’s Guidance for Q1 & 2025
For the first quarter of 2025, ASM (for scheduled service) is expected to increase 14% on a year-over-year basis. Total system ASM is projected to gain 13.5% on a year-over-year basis.
The operating margin is expected to be between 8% and 11%. Adjusted EPS (airline) is anticipated to be in the $1.75-$2.75 range. First-quarter adjusted consolidated EPS is expected to lie between $1.50 and $2.50. The fuel cost per gallon is suggested to be $2.60.
For 2025, ASM (for scheduled service) is expected to increase 17% on a year-over-year basis. Total system ASM is projected to rise 16% on a year-over-year basis.
Interest expenses are forecasted to be in the range of $130-$140 million. The fuel cost per gallon is suggested to be $2.60. The tax rate is expected to be 24%.
Under airline capex, aircraft-related capital expenditures are expected in the $285-$315 million band. Capitalized deferred heavy maintenance is anticipated to be between $85 million and $95 million. Other airline capital expenditures are expected to be between $115 and $135 million.
The company aims to expand its fleet size to 125 at the end of first-quarter 2025, 127 each at the end of second and third quarters and 122 at the end of fourth-quarter 2025.
Delta Air Lines (DAL - Free Report) reported fourth-quarter 2024 earnings (excluding 56 cents from non-recurring items) of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.76. Earnings increased 44.5% on a year-over-year basis due to low fuel costs.
DAL’srevenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and increased 9.4% on a year-over-year basis, driven by strong holiday travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.44 billion, up 5.7% year over year. Passenger revenues, which accounted for 82.4% of total revenues, increased 5% year over year at $12.82 billion.
J.B. Hunt Transport Services (JBHT - Free Report) reported fourth-quarter 2024 earnings per share of $1.53, which fell short of the Zacks Consensus Estimate of $1.62. However, the bottom line increased 4.1% on a year-over-year basis.
JBHT’s total operating revenues of $3.15 billion narrowly beat the Zacks Consensus Estimate of $3.13 billion but declined 4.8% year over year. The decline was mainly due to lower fuel surcharge revenues and yield pressure in its Intermodal segment.
JBHT’s fourth-quarter 2024 operating revenues of $2.78 billion, excluding fuel surcharge revenue, decreased 2% from the year-ago reported quarter. Total operating income for the reported quarter increased 2% year over year to $207 million.
Alaska Air Group, Inc. (ALK - Free Report) reported solid fourth-quarter 2024results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of 97 cents outpaced the Zacks Consensus Estimate of 47 cents and improved more than 100% on a year-over-year basis. The reported figure exceeded the guided range of 40-50 cents.
ALK’s bottom line benefitted from solid revenue growth, cost and operational performance throughout the quarter and holiday travel periods. ALK also benefitted from a renegotiation of certain interest payments and favorability in its fourth-quarter tax rate.
ALK’s operating revenues of $3.53 billion beat the Zacks Consensus Estimate of $3.51 billion. The top line jumped 38.4% year over year, with passenger revenues accounting for 89.9% of the top line and increasing 37% owing to continued recovery in air-travel demand.
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Allegiant Tops Q4 Earnings and Revenue Estimates, Improves Y/Y
Allegiant Travel Company (ALGT - Free Report) has reported fourth-quarter 2024 earnings per share (EPS) of $2.10, which surpassed the Zacks Consensus Estimate of $1.88. The company reported earnings of 11 cents per share in the year-ago quarter.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Operating revenues of $627.7 million surpassed the Zacks Consensus Estimate of $624.8 million and improved 2.7% on a year-over-year basis.
Allegiant Travel Company Price, Consensus and EPS Surprise
Allegiant Travel Company price-consensus-eps-surprise-chart | Allegiant Travel Company Quote
Passenger revenues, which accounted for the bulk (88.2%) of the top line, fell 0.4% on a year-over-year basis. Air traffic (measured in revenue passenger miles) for scheduled services dipped 2.2% year over year in the quarter under review. Capacity (measured in available seat miles or ASMs) grew 1.7% from the year-ago number. The load factor (percentage of seats filled by passengers) decreased to 80.2% in the reported quarter from 83.3% in the year-ago quarter, as traffic did not outperform capacity.
Operating costs per available seat miles, excluding fuel, fell 2.5% year over year to 8.29 cents. The average fuel cost per gallon (scheduled) decreased 22.2% year over year to $2.49. Total scheduled service passenger revenue per available seat miles fell to 13.01 cents from 13.16 cents a year ago.
ALGT’s Liquidity
As of Dec. 31, 2024, Allegiant’s total unrestricted cash and investments were $832.8 million compared with $804.6 million at the prior-quarter end. Long-term debt and finance lease obligations (net of current maturities and related costs) totaled $1.61 billion compared with $1.77 billion at the prior-quarter end.
Allegiant’s Guidance for Q1 & 2025
For the first quarter of 2025, ASM (for scheduled service) is expected to increase 14% on a year-over-year basis. Total system ASM is projected to gain 13.5% on a year-over-year basis.
The operating margin is expected to be between 8% and 11%. Adjusted EPS (airline) is anticipated to be in the $1.75-$2.75 range. First-quarter adjusted consolidated EPS is expected to lie between $1.50 and $2.50. The fuel cost per gallon is suggested to be $2.60.
For 2025, ASM (for scheduled service) is expected to increase 17% on a year-over-year basis. Total system ASM is projected to rise 16% on a year-over-year basis.
Interest expenses are forecasted to be in the range of $130-$140 million. The fuel cost per gallon is suggested to be $2.60. The tax rate is expected to be 24%.
Under airline capex, aircraft-related capital expenditures are expected in the $285-$315 million band. Capitalized deferred heavy maintenance is anticipated to be between $85 million and $95 million. Other airline capital expenditures are expected to be between $115 and $135 million.
The company aims to expand its fleet size to 125 at the end of first-quarter 2025, 127 each at the end of second and third quarters and 122 at the end of fourth-quarter 2025.
ALGT’s Zacks Rank
Currently, Allegiant carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q4 Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported fourth-quarter 2024 earnings (excluding 56 cents from non-recurring items) of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.76. Earnings increased 44.5% on a year-over-year basis due to low fuel costs.
DAL’srevenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and increased 9.4% on a year-over-year basis, driven by strong holiday travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.44 billion, up 5.7% year over year. Passenger revenues, which accounted for 82.4% of total revenues, increased 5% year over year at $12.82 billion.
J.B. Hunt Transport Services (JBHT - Free Report) reported fourth-quarter 2024 earnings per share of $1.53, which fell short of the Zacks Consensus Estimate of $1.62. However, the bottom line increased 4.1% on a year-over-year basis.
JBHT’s total operating revenues of $3.15 billion narrowly beat the Zacks Consensus Estimate of $3.13 billion but declined 4.8% year over year. The decline was mainly due to lower fuel surcharge revenues and yield pressure in its Intermodal segment.
JBHT’s fourth-quarter 2024 operating revenues of $2.78 billion, excluding fuel surcharge revenue, decreased 2% from the year-ago reported quarter. Total operating income for the reported quarter increased 2% year over year to $207 million.
Alaska Air Group, Inc. (ALK - Free Report) reported solid fourth-quarter 2024results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of 97 cents outpaced the Zacks Consensus Estimate of 47 cents and improved more than 100% on a year-over-year basis. The reported figure exceeded the guided range of 40-50 cents.
ALK’s bottom line benefitted from solid revenue growth, cost and operational performance throughout the quarter and holiday travel periods. ALK also benefitted from a renegotiation of certain interest payments and favorability in its fourth-quarter tax rate.
ALK’s operating revenues of $3.53 billion beat the Zacks Consensus Estimate of $3.51 billion. The top line jumped 38.4% year over year, with passenger revenues accounting for 89.9% of the top line and increasing 37% owing to continued recovery in air-travel demand.