Allegiant Travel (NASDAQ:ALGT) Posts Earnings Results, Beats Expectations By $0.41 EPS

Allegiant Travel (NASDAQ:ALGT) posted its quarterly earnings results on Wednesday. The transportation company reported ($0.03) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.44) by $0.41, FiscalAI reports. The company had revenue of $961.60 million for the quarter, compared to the consensus estimate of $946.44 million. Allegiant Travel had a net margin of 0.90% and a return on equity of 10.83%. The firm’s quarterly revenue was up 71.2% compared to the same quarter last year. During the same period last year, the company posted ($2.09) EPS.

Here are the key takeaways from Allegiant Travel’s conference call:

• Allegiant reported $962 million in third-quarter revenue, up 19% year over year despite operating 6% less capacity. Adjusted operating margin expanded 340 basis points, while combined TRASM rose 28.3% to a third-quarter record.
• Management expects fourth-quarter TRASM to reach a company record and forecasts about $1.25 in EPS at an assumed $4.75-per-gallon fuel price. It reaffirmed full-year 2026 adjusted EPS guidance of more than $6, despite higher fuel costs.
• Commercial initiatives are contributing to growth: co-brand remuneration increased nearly 24%, Expedia accounts for about 4% of bookings and is bringing in many new customers, and premium seating products are seeing strong demand. The more fuel-efficient MAX fleet is also expanding, with management expecting it to produce more than 30% of Allegiant’s ASMs next year.
• Allegiant said it remains confident in achieving more than $140 million in annual Sun Country synergies by 2029, citing early savings from consolidated operations and purchasing. However, Sun Country pilot staffing remains below target, and its scheduled-service flying is expected to be down about 10% year over year in the fourth quarter.
• Elevated costs remain a headwind: fuel expense was about $294 million in the quarter, up $94 million year over year, and non-fuel unit costs rose 9.1%. The company also expects 2027 capital expenditures to exceed 2026 levels as aircraft deliveries increase.

Allegiant Travel Stock Up 2.9%

Shares of NASDAQ ALGT traded up $2.40 during midday trading on Thursday, hitting $83.93. 133,887 shares of the stock traded hands, compared to its average volume of 545,238. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.80 and a current ratio of 0.83. Allegiant Travel has a one year low of $61.36 and a one year high of $123.63. The business has a 50 day moving average price of $75.28 and a two-hundred day moving average price of $87.51. The company has a market cap of $2.29 billion, a PE ratio of 60.12, a P/E/G ratio of 0.26 and a beta of 1.65.

Allegiant Travel News Summary

Here are the key news stories impacting Allegiant Travel this week:

• Positive Sentiment: Allegiant’s adjusted diluted loss was $0.03 per share, narrower than analyst estimates for a loss of about $0.44, while revenue of $961.6 million exceeded expectations. The reported GAAP loss was $0.56 per share, so the adjusted and GAAP figures differ materially. Allegiant third-quarter results
• Positive Sentiment: Management said adjusted operating margin expanded 340 basis points year over year on a pro forma basis, despite fuel costs per gallon rising more than 55%. Coverage also highlighted record TRASM, a measure of passenger revenue per available seat mile, as a sign of commercial momentum. Q3 earnings call highlights
• Negative Sentiment: The company remained unprofitable on a GAAP basis, reporting a $0.56-per-share loss. Management’s comments also underscore the substantial fuel-cost headwind, which could continue to pressure results even as operating margins improve. Allegiant third-quarter results

Analysts Set New Price Targets

Several brokerages have recently issued reports on ALGT. UBS Group upgraded shares of Allegiant Travel from a “neutral” rating to a “buy” rating and lowered their price target for the stock from $111.00 to $107.00 in a report on Sunday, September 13th. Barclays dropped their price objective on Allegiant Travel from $145.00 to $115.00 and set an “overweight” rating on the stock in a research note on Friday, September 11th. Susquehanna lowered their target price on Allegiant Travel from $110.00 to $85.00 and set a “neutral” rating for the company in a report on Wednesday, October 7th. Wall Street Zen lowered Allegiant Travel from a “buy” rating to a “hold” rating in a research note on Saturday, August 15th. Finally, Citigroup restated a “buy” rating on shares of Allegiant Travel in a report on Tuesday, October 6th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $124.15.

About Allegiant Travel

Allegiant Travel Company is a leisure-focused travel company headquartered in Las Vegas, Nevada. Its principal operating subsidiary, Allegiant Air, is a low-cost airline that provides scheduled and charter passenger service, primarily connecting smaller and mid-sized U.S. cities with popular vacation destinations.

Allegiant Air’s business model emphasizes nonstop routes, low base fares and optional services such as seat selection, baggage, priority boarding and other travel-related amenities.