Spirit Airlines (SAVE) Up On Q3 Earnings & Revenues Beat
Zacks Investment Research | Oct 30, 2017 09:11PM ET
Shares of Spirit Airlines (NASDAQ:SAVE) have performed well of late. The stock has moved up 9.7% compared with its industry ’s gain of 0.7% in a month.
The carrier performed impressively in the third quarter of 2017, despite disruptions caused by the recent hurricanes. Evidently, shares of this low-cost carrier have been on an uptrend, ever since its earnings release on Oct 26. This can be made out from the fact that the stock has gained 9.4% so far since its third-quarter outperformance.
Spirit Airlines’third-quarter earnings (excluding 7 cents from non-recurring items) came in at 94 cents per share, beating the Zacks Consensus Estimate of 90 cents. The bottom line however, plunged 24.2% on a year-over-year basis.
Spirit Airlines reported operating revenues of $687.2 million, marginally ahead of the Zacks Consensus Estimate $686.6 million. The top line improved 10.6% year over year owing to a 14% rise in non-ticket revenues.
In the reported quarter, total revenue per available seat mile decreased 6.3% due to low passenger yields from aggressive pricing action.Load factor (percentage of seats filled by passengers) decreased to 84% from 86% in the year-ago quarter. Load factor fell as traffic growth (15.2%) was outpaced by capacity expansion (18%) during the reported quarter.
Cost per available seat mile (CASM), excluding special items, and fuel slipped 1.1% on the back of lower maintenance and salaries, wages and benefits per available seat mile. Adjusted operating expense in the third quarter climbed 20.2% to $574.75 million.
The company’s board has recently authorized a share repurchase program worth up to $100 million in aggregate value. The date of expiration of the authorization is Oct 25, 2018.
Spirit Airlines, Inc. Price, Consensus and EPS Surprise
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