The 10-second takeaway
For the quarter ended June 30 (Q2), Spirit Airlines beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Margins expanded across the board.
Spirit Airlines reported revenue of $346.3 million. The six analysts polled by S&P Capital IQ wanted to see a top line of $342.8 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $275.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.49. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. GAAP EPS of $0.48 for Q2 were 17% higher than the prior-year quarter's $0.41 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.6%, 400 basis points better than the prior-year quarter. Operating margin was 15.9%, 240 basis points better than the prior-year quarter. Net margin was 10.0%, 390 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $367.3 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $1.37 billion. The average EPS estimate is $1.94.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 50 members out of 71 rating the stock outperform, and 21 members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Spirit Airlines a green thumbs-up, and eight 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 $29.44.
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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. 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.