Allegiant (ALGT) Stock Up 3% On Q4 Earnings & Revenue Beat
Zacks Investment Research | Jan 30, 2019 08:08PM ET
Allegiant Travel Company (NASDAQ:ALGT) delivered impressive fourth-quarter 2018 results, with earnings and revenues beating the Zacks Consensus Estimate.
The impressive quarterly performance has boosted investors’ optimism on the stock. As a result, shares of the company have moved up 3.4% during after-hours trading on Jan 30.
The transportation company’s earnings of $2.56 per share outpaced the Zacks Consensus Estimate of $2.49. However, the bottom line declined year over year due to high costs.
Total operating revenues increased 8.7% year over year to $412.1 million and surpassed the consensus mark of $409.1 million. Moreover, the top line was primarily driven by a 10.1% rise in passenger revenues.
Systemwide air traffic (measured in revenue passenger miles: RPMs) in the quarter under review rose 4.8% and capacity (measured in available seat miles: ASMs) increased 5.1% year over year. Consequently, load factor (percentage of seats filled by passengers) was 80.4%, down 20 basis points, as capacity expansion outweighed traffic growth.
Operating cost per available seat miles (CASM) excluding fuel fell 10.1%. Nevertheless, total scheduled service revenue per available seat miles (TRASM) improved 4.4% to 11.29 cents. Average fuel cost per gallon (scheduled) increased 15.3% to $2.33 in the quarter.
For 2018, Allegiant rewarded shareholders with cash dividend worth $45.2 million. Furthermore, the board of directors has cleared a dividend of 70 cents per share, which is payable on Mar 14, 2019 to shareholders of record as of Mar 1. Moreover, fuel cost per gallon increased 27% in 2018.
Allegiant Travel Company Price, Consensus and EPS Surprise
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