Allegiant Travel Company (NASDAQ:ALGT) delivered lackluster second-quarter 2019 results, with earnings and revenues falling short of the Zacks Consensus Estimate.
The transportation company’s total earnings of $4.33 per share lagged the Zacks Consensus Estimate of $4.67. However, the bottom line increased almost 40% year over year. Meanwhile, total operating revenues increased 12.6% year over year to $491.8 million on the back of a 12.1% rise in passenger revenues. However, the top line missed the consensus mark of $505.2 million.
Notably, quarterly earnings (airline operations) increased 49.8% year over year to $4.81 per share. Airline revenues increased 12% to $486.8 million.
Quarter in Details
Systemwide air traffic (measured in revenue passenger miles: RPMs) in the quarter under review rose 11.5% and capacity (measured in available seat miles: ASMs) increased 13.4% year over year. Consequently, load factor (percentage of seats filled by passengers) was 82.2%, down 130 basis points, as capacity expansion outweighed traffic growth.
Airline operating cost per available seat miles (CASM) excluding fuel fell 6.1%. Moreover, total scheduled service passenger revenue per available seat miles (TRASM) declined 1.6% to 10.97 cents. Average fuel cost per gallon (scheduled) decreased 6.3% to $2.22 in the quarter.
In the quarter under review, Allegiant rewarded shareholders with dividends worth $11 million. Furthermore, the board of directors has cleared a dividend of 70 cents per share, which is payable on Sep 27, 2019 to shareholders of record as of Sep 20.
Full-Year 2019 Outlook
The company expects scheduled and system ASMs to increase between 8% and 9% each. The company now expects non-fuel unit costs (airline) to decline between 3% and 4% (earlier outlook had hinted at a decline in the 1.5-3.5% range).
The company now expects fuel cost per gallon of $2.15 (earlier guidance: $2.26). Additionally, effective tax rate is now anticipated between 23% and 24%.
This Zacks Rank #2 (Buy) company now expects earnings per share in the range of $13.50-$14.25 (earlier guidance: $13.25-$14.75) for the current year. The mid-point of the guided range ($13.88 per share) is above the Zacks Consensus Estimate of $13.73.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the Zacks Airline industry are keenly awaiting second-quarter 2019 earnings reports from key players like SkyWest (NASDAQ:SKYW) , GOL Linhas (NYSE:GOL) and Copa Holdings (NYSE:CPA) . While SkyWest is scheduled to report second-quarter results on Jul 31, GOL Linhas and Copa Holdings will do so on Aug 1 and Aug 7, respectively.
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Allegiant Travel Company (ALGT): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
Copa Holdings, S.A. (CPA): Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
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