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Allegiant Travel's (ALGT) Q4 Earnings Miss Estimates, Up Y/Y
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Allegiant Travel Company (ALGT - Free Report) reported fourth-quarter 2019 earnings of $3.72 per share, which fell short off the Zacks Consensus Estimate of $3.87. However, the bottom line rose 45.3% year over year, driven by lower fuel costs and higher revenues. Total operating revenues increased 11.9% year over year to $461.1 million on the back of a 10.8% rise in passenger revenues. Moreover, the top line surpassed the consensus mark of $460.2 million.
Notably, quarterly earnings (airline operations) increased to $4.04 per share.
Allegiant Travel Company Price, Consensus and EPS Surprise
Air traffic (measured in revenue passenger miles or RPMs) for scheduled service rose 8% in the quarter under review. Capacity (measured in available seat miles or ASMs) increased 8.3% year over year. Load factor (percentage of seats filled by passengers) was 82.1%, down 20 basis points as capacity expansion outweighed traffic growth.
Airline operating cost per available seat miles (CASM) excluding fuel fell 1.5%. Average fuel cost per gallon (scheduled) declined 6.4% to $2.18 in the quarter. Moreover, total scheduled service passenger revenue per available seat miles (TRASM) increased 2.5% to 11.57 cents.
In the quarter under review, Allegiant rewarded shareholders with dividends worth $11 million. Notably, the company has roughly $85 million remaining under its current buyback program. Furthermore, the board of directors has cleared a quarterly dividend of 70 cents per share, which is payable on Mar 12, 2020, to shareholders of record as of Mar 2.
2020 Outlook
The company continues to expect scheduled and system ASMs to increase between 10% and 12% each. Allegiant Travel anticipates non-fuel unit costs (airline) to either remain flat or decline up to 2%.
The company now expects fuel cost per gallon of $2.15 (old guidance: $2.12). Additionally, the effective tax rate is anticipated between 23% and 24%.
This Zacks Rank #3 (Hold) company still expects earnings per share between $16.5 and$19 for the current year. The mid-point of the guided range ($17.75 per share) is above the Zacks Consensus Estimate of $17.09.
Investors interested in the broader Transportation sector are awaiting fourth-quarter 2019 earnings reports from key players like Air Lease Corporation (AL - Free Report) , Expeditors International of Washington (EXPD - Free Report) and Hertz Global Holdings (HTZ - Free Report) .
Air Lease and Expeditors will announce results on Feb 14 and Feb 18, respectively. Hertz will release fourth-quarter earnings on Feb 24.
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Allegiant Travel's (ALGT) Q4 Earnings Miss Estimates, Up Y/Y
Allegiant Travel Company (ALGT - Free Report) reported fourth-quarter 2019 earnings of $3.72 per share, which fell short off the Zacks Consensus Estimate of $3.87. However, the bottom line rose 45.3% year over year, driven by lower fuel costs and higher revenues. Total operating revenues increased 11.9% year over year to $461.1 million on the back of a 10.8% rise in passenger revenues. Moreover, the top line surpassed the consensus mark of $460.2 million.
Notably, quarterly earnings (airline operations) increased to $4.04 per share.
Allegiant Travel Company Price, Consensus and EPS Surprise
Allegiant Travel Company price-consensus-eps-surprise-chart | Allegiant Travel Company Quote
Quarter in Details
Air traffic (measured in revenue passenger miles or RPMs) for scheduled service rose 8% in the quarter under review. Capacity (measured in available seat miles or ASMs) increased 8.3% year over year. Load factor (percentage of seats filled by passengers) was 82.1%, down 20 basis points as capacity expansion outweighed traffic growth.
Airline operating cost per available seat miles (CASM) excluding fuel fell 1.5%. Average fuel cost per gallon (scheduled) declined 6.4% to $2.18 in the quarter. Moreover, total scheduled service passenger revenue per available seat miles (TRASM) increased 2.5% to 11.57 cents.
In the quarter under review, Allegiant rewarded shareholders with dividends worth $11 million. Notably, the company has roughly $85 million remaining under its current buyback program. Furthermore, the board of directors has cleared a quarterly dividend of 70 cents per share, which is payable on Mar 12, 2020, to shareholders of record as of Mar 2.
2020 Outlook
The company continues to expect scheduled and system ASMs to increase between 10% and 12% each. Allegiant Travel anticipates non-fuel unit costs (airline) to either remain flat or decline up to 2%.
The company now expects fuel cost per gallon of $2.15 (old guidance: $2.12). Additionally, the effective tax rate is anticipated between 23% and 24%.
This Zacks Rank #3 (Hold) company still expects earnings per share between $16.5 and$19 for the current year. The mid-point of the guided range ($17.75 per share) is above the Zacks Consensus Estimate of $17.09.
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 awaiting fourth-quarter 2019 earnings reports from key players like Air Lease Corporation (AL - Free Report) , Expeditors International of Washington (EXPD - Free Report) and Hertz Global Holdings (HTZ - Free Report) .
Air Lease and Expeditors will announce results on Feb 14 and Feb 18, respectively. Hertz will release fourth-quarter earnings on Feb 24.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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