Yahoo Finance Allegiant (ALGT) Q4 Earnings Top Estimates, Up Year Over Year
Allegiant Travel Company ALGT reported fourth-quarter 2022 earnings (excluding 30 cents from non-recurring items) of $3.17 per share, outperforming the Zacks Consensus Estimate of 79 cents per share. The company had reported earnings of $1.18 per share a year ago.
Buoyant demand for air travel along with operational improvements supported the earnings uptick.
Operating revenues of $611.55 million beat the Zacks Consensus Estimate of $578.32 million and increased 23% on a year-over-year basis.
Passenger revenues, which accounted for the bulk (92.6%) of the top line, increased around 25% on a year-over-year basis. Upbeat air travel demand can be correlated with such an increase.
Allegiant Travel Company Price, Consensus and EPS Surprise
Allegiant Travel Company price-consensus-eps-surprise-chart | Allegiant Travel Company Quote
Air traffic (measured in revenue passenger miles or RPMs) for scheduled service increased 8.2% year over year in the quarter under review. Capacity (measured in available seat miles or ASMs) suffered a hit due to the the unfavorable weather condition and was down 2.2% from the year-ago reported figure. The load factor (percentage of seats filled by passengers) improved 8.2% to 85.3% in the reported quarter, as traffic surge outweighed capacity expansion.
Operating cost per available seat miles (CASM), excluding fuel, increased 7.2% year over year to 7.76 cents. Average fuel cost per gallon (scheduled) surged 44.8% to $3.59, in line with the guidance provided. Total scheduled service passenger revenue per available seat miles (TRASM) improved to 14.03 cents from the year-ago reported 11.18 cents.
Liquidity
As of Dec 31, 2022, Allegiant Travel’s total unrestricted cash and investments totaled $1,018.4 million compared with $1185.1 million at the end of December 2021. Long-term debt and finance lease obligations (net of current maturities and related costs) was $2097 million compared with $1,742.6 million reported at the end of 2021, accounting for an increase of 20.3%. Debt, net of unrestricted cash and investments, rose 93.5% on a year-over-year basis, resulting in elevated finance costs.
2023 Expectations
For 2023, ASM (for scheduled service) is expected to increase 2-6% on a year-over-year basis.
Total system ASM is expected to rise 2-6% on a year-over-year basis.
Earnings per share are expected in the $5.00-$9.00 range. The mid-point of the guided range ($7) is above the Zacks Consensus Estimate of $6.3 for 2023.
Fuel cost per gallon is expected to be $3.60.
Interest expenses are expected in the range of $150-$160 million, up from 115.7 million in 2022.
For 2023, under Airline capex, aircraft, engines, induction costs and pre-delivery deposits are expected in the $550-$570 million range.
Capitalized deferred heavy maintenance is expected in the range of $50-$60 million.
Other airline capital expenditures are expected between $130 million and $150 million.
Total project spending (Sunseeker Resorts Project) for 2023 is expected to be $618 million.
The company expects to expand its fleet size to 127 at 2023-end from 121 at the end of 2022.
Zacks Rank
Allegiant Travel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Within the broader Transportation sector, the following stocks have reported fourth-quarter 2022 earnings beat.
Delta Air Lines’ DAL fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
Delta reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased more than 41.87% on a year-over-year basis. Management expects first-quarter 2023 earnings per share in the band of 15-40 cents.
Alaska Air GroupALK reported mixed fourth-quarter 2022 results, wherein earnings outperformed the Zacks Consensus Estimate but revenues missed the same. Quarterly earnings of 92 cents per share beat the Zacks Consensus Estimate of 90 cents. The bottom line surged more than 100% year over year.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) rose 14% to 12.85 billion. Consolidated load factor (percentage of seats filled by passengers) increased 6.1 percentage points to 85.5% in the fourth quarter of 2022. Economic fuel price per gallon climbed 57.1% to $3.55.
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