Breaking News
0

What To Expect From Allegiant (ALGT) This Earnings Season?

By Zacks Investment ResearchStock MarketsApr 23, 2018 12:10AM ET
www.investing.com/analysis/what-to-expect-from-allegiant-algt-this-earnings-season-200308012
What To Expect From Allegiant (ALGT) This Earnings Season?
By Zacks Investment Research   |  Apr 23, 2018 12:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Allegiant Travel Company (NASDAQ:ALGT) is scheduled to report first-quarter 2018 earnings numbers on Apr 25, after the market closes.

In the fourth quarter of 2017, the company’s earnings came in at $2.71 per share, outpacing the Zacks Consensus Estimate of $1.78. The bottom line also increased 9.3% on a year-over-year basis. Results were aided by higher revenues.

Quarterly revenues improved 12.7% year over year to $378.6 million, surpassing the Zacks Consensus Estimate of $377.6 million. The top line was primarily driven by significant increase in ancillary revenues.

Let’s see how things shape up for this announcement.

Factors at Play

We expect high labor costs to hurt the company's bottom line in the soon-to-be reported quarter. The rise in fuel costs, which is expected to be $2.18 per gallon in the first quarter, also does not bode well for the stock.

Moreover, woes related to capacity expansion raise major concerns. For the first quarter of 2018, the company expects average seat miles (scheduled and system) to grow between 10% and 14% year over year. The Zacks Consensus Estimate for first-quarter capacity is pegged at 3,763 million, higher than 3,431 million in fourth-quarter 2017.

Additionally, we expect a detailed commentary on CBS News' recent report, "60 Minutes", which painted a gloomy picture of the airlines alleging that it was facing a number of safety-related issues. The damaging television program was aired on Apr 15. The allegations are being investigated by the likes of Kaplan Fox & Kilsheimer LLP.

However, the company’s efforts to reward shareholders through share buybacks and dividend payments are impressive. Its fleet modernization initiatives are encouraging as well.

Earnings Whispers

According to the Zacks model, a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings surprise. However, that is not the case as highlighted below.

Zacks ESP: Allegiant has an Earnings ESP of -1.09% as the Most Accurate estimate is pegged at $2.97 per share, lower than the Zacks Consensus Estimate of $3.00. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Allegiant carries a Zacks Rank #3, which increases the predictive power of ESP. However, a company needs to have a positive ESP to be confident about an earnings surprise.

Conversely, we caution against all Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Investors interested in the broader Zacks Transportation sector may check out the following companies with the right combination of elements to beat estimates in the next releases:

Hawaiian Holdings, Inc. (NASDAQ:HA) has an Earnings ESP of +2.57% and a Zacks Rank #3. The company will release first-quarter 2018 results on Apr 24. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Spirit Airlines, Inc. (NYSE:SAVE) has an Earnings ESP of +2.46% and a Zacks Rank of 3. The company will release first-quarter 2018 results on Apr 26.

Copa Holdings, S.A. (NYSE:CPA) has an Earnings ESP of +0.75% and a Zacks Rank #3. The company is scheduled to release first-quarter results on May 9.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>



Copa Holdings, S.A. (CPA): Free Stock Analysis Report

Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report

Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report

Allegiant Travel Company (ALGT): Free Stock Analysis Report

Original post

Zacks Investment Research
What To Expect From Allegiant (ALGT) This Earnings Season?
 

Related Articles

What To Expect From Allegiant (ALGT) This Earnings Season?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email