The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Spirit Airlines beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share shrank significantly.
Gross margins expanded, operating margins dropped, net margins contracted.
Spirit Airlines reported revenue of $328.3 million. The six analysts polled by S&P Capital IQ predicted a top line of $324.7 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $273.9 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 $0.27. The nine earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. GAAP EPS of $0.27 for Q4 were 18% lower than the prior-year quarter's $0.33 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 43.0%, 1,500 basis points better than the prior-year quarter. Operating margin was 9.8%, 450 basis points worse than the prior-year quarter. Net margin was 6.0%, 280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $364.4 million. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $1.60 billion. The average EPS estimate is $1.95.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 85 members out of 107 rating the stock outperform, and 22 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Spirit Airlines a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spirit Airlines is outperform, with an average price target of $26.75.
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