Spirit Airlines Hits Estimates in Solid Quarter

Spirit Airlines (Nasdaq: SAVE  ) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Spirit Airlines met expectations on revenues and met expectations on earnings per share.

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

Gross margins dropped, operating margins dropped, net margins increased.

Revenue details
Spirit Airlines notched revenue of $407.3 million. The seven analysts polled by S&P Capital IQ looked for a top line of $409.2 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $346.3 million.

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

EPS details
EPS came in at $0.63. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.63 per share. Non-GAAP EPS of $0.63 for Q2 were 29% higher than the prior-year quarter's $0.49 per share. GAAP EPS of $0.58 for Q2 were 21% higher than the prior-year quarter's $0.48 per share.

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

Margin details
For the quarter, gross margin was 30.4%, 70 basis points worse than the prior-year quarter. Operating margin was 16.4%, 40 basis points worse than the prior-year quarter. Net margin was 10.3%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $418.7 million. On the bottom line, the average EPS estimate is $0.55.

Next year's average estimate for revenue is $1.62 billion. The average EPS estimate is $2.16.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 115 members out of 137 rating the stock outperform, and 22 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Spirit Airlines a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spirit Airlines is buy, with an average price target of $35.56.

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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. 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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