Allegiant Travel Beats on Both Top and Bottom Lines

Allegiant Travel (Nasdaq: ALGT  ) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Allegiant Travel beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.

Margins increased across the board.

Revenue details
Allegiant Travel reported revenue of $273.0 million. The eight analysts polled by S&P Capital IQ foresaw revenue of $268.4 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $237.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.65. The 12 earnings estimates compiled by S&P Capital IQ forecast $1.45 per share. GAAP EPS of $1.65 for Q1 were 47% higher than the prior-year quarter's $1.12 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 31.3%, 560 basis points better than the prior-year quarter. Operating margin was 19.2%, 390 basis points better than the prior-year quarter. Net margin was 11.7%, 260 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $265.2 million. On the bottom line, the average EPS estimate is $1.61.

Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $5.33.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 167 members out of 211 rating the stock outperform, and 44 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Allegiant Travel a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allegiant Travel is outperform, with an average price target of $86.73.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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  • Report this Comment On April 30, 2013, at 3:01 PM, sharkflyt wrote:

    Allegiant isn't worth the headache. It has too much competition with Spirit Airlines and won't be able to sustain it's presence in Las Vegas. Right now Spirit Airlines is gaining steam and locals are digging the low fares and routes they offer. Southwest is lagging behind which started from the purchase of Air Tran. They are in too much debt.

    Right now the only airline in America with no debt is Spirit Airlines. I also noticed they added even more gates at McCarran airport. They just launched direct flights to PHL and BWI which just connected them to one of the largest passenger flows in our nation. I can see Las Vegas turning from mostly SWA flights to Spirit real soon!

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9/30/2016 12:38 PM
ALGT $132.66 Up +2.31 +1.77%
Allegiant Travel CAPS Rating: *****