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Spirit Airlines (SAVE) Up on Q3 Earnings & Revenue Beat
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Spirit Airlines, Inc.’s (SAVE - Free Report) third-quarter 2018 earnings per share (excluding 5 cents from non-recurring items) came in at $1.47, ahead of the Zacks Consensus Estimate of $1.39. Moreover, the bottom line soared 56.4% year over year.
The carrier recorded revenues of $904.3 million, marginally beating the Zacks Consensus Estimate of $904.1 million. Also, the top line improved 31.6% year over year owing to 24.6% and 3% rise in passenger segments and operating yields, respectively.
The company’s impressive performance pleased investors. As a result, shares of the company have rallied more than 11% since its earnings release.
Spirit Airlines, Inc. Price, Consensus and EPS Surprise
Total revenue per available seat miles (a key measure of unit revenues) increased 5.5%. Total revenue passenger miles (RPMs) registered a rise of 27.7% in the reported quarter while available seat miles (ASMs) expanded 24.7% year over year. Consequently, the load factor (percentage of seats filled by passengers) climbed 200 basis points to 86%.
Total operating expenses surged 30.1% to $759.21 million in the quarter under review, primarily due to a 34.9% rise in average economic fuel cost per gallon ($2.36). Besides fuel costs, salaries, wages and other benefits increased 38%. Unit costs (excluding fuel and special items) decreased 3.7% as a result of better operational performance among other factors.
Q4 Outlook
The company expects total revenue per available seat mile (TRASM) to increase approximately 6% year over year during the fourth quarter. Additionally, the airline anticipates capacity to expand 15% year over year in the same period. Meanwhile, unit costs (excluding fuel and special items) are estimated to rise 5-6% year over year in the final quarter of 2018, mainly due to higher labor costs. The metric was down 4.4% in the year-ago period. Economic fuel cost is projected to be $2.46 per gallon. Moreover, an effective tax rate of 24% is envisioned during the same time frame.
2018 Outlook
For the full year, this Zacks Rank #3 (Hold) company continues to expect unit costs (excluding fuel and special items) to decrease in the 3.5-4% band year over year. Capital expenditures are estimated to be $1 billion. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the broader Zacks Transportation sector are keenly awaiting third-quarter earnings reports from key players like SkyWest, Inc. (SKYW - Free Report) , C.H. Robinson Worldwide, Inc. (CHRW - Free Report) and Triton International Limited . While SkyWest and C.H. Robinson will report third-quarter earnings on Oct 30, Triton International will release the same on Nov 2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Spirit Airlines (SAVE) Up on Q3 Earnings & Revenue Beat
Spirit Airlines, Inc.’s (SAVE - Free Report) third-quarter 2018 earnings per share (excluding 5 cents from non-recurring items) came in at $1.47, ahead of the Zacks Consensus Estimate of $1.39. Moreover, the bottom line soared 56.4% year over year.
The carrier recorded revenues of $904.3 million, marginally beating the Zacks Consensus Estimate of $904.1 million. Also, the top line improved 31.6% year over year owing to 24.6% and 3% rise in passenger segments and operating yields, respectively.
The company’s impressive performance pleased investors. As a result, shares of the company have rallied more than 11% since its earnings release.
Spirit Airlines, Inc. Price, Consensus and EPS Surprise
Spirit Airlines, Inc. Price, Consensus and EPS Surprise | Spirit Airlines, Inc. Quote
Total revenue per available seat miles (a key measure of unit revenues) increased 5.5%. Total revenue passenger miles (RPMs) registered a rise of 27.7% in the reported quarter while available seat miles (ASMs) expanded 24.7% year over year. Consequently, the load factor (percentage of seats filled by passengers) climbed 200 basis points to 86%.
Total operating expenses surged 30.1% to $759.21 million in the quarter under review, primarily due to a 34.9% rise in average economic fuel cost per gallon ($2.36). Besides fuel costs, salaries, wages and other benefits increased 38%. Unit costs (excluding fuel and special items) decreased 3.7% as a result of better operational performance among other factors.
Q4 Outlook
The company expects total revenue per available seat mile (TRASM) to increase approximately 6% year over year during the fourth quarter. Additionally, the airline anticipates capacity to expand 15% year over year in the same period. Meanwhile, unit costs (excluding fuel and special items) are estimated to rise 5-6% year over year in the final quarter of 2018, mainly due to higher labor costs. The metric was down 4.4% in the year-ago period. Economic fuel cost is projected to be $2.46 per gallon. Moreover, an effective tax rate of 24% is envisioned during the same time frame.
2018 Outlook
For the full year, this Zacks Rank #3 (Hold) company continues to expect unit costs (excluding fuel and special items) to decrease in the 3.5-4% band year over year. Capital expenditures are estimated to be $1 billion. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the broader Zacks Transportation sector are keenly awaiting third-quarter earnings reports from key players like SkyWest, Inc. (SKYW - Free Report) , C.H. Robinson Worldwide, Inc. (CHRW - Free Report) and Triton International Limited . While SkyWest and C.H. Robinson will report third-quarter earnings on Oct 30, Triton International will release the same on Nov 2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>