Overview
Travel company's 2025 revenue slightly beat analyst expectations
Adjusted EPS for 2025 beat analyst expectations
Company announced merger agreement to acquire Sun Country Airlines
Outlook
Allegiant expects first-quarter adjusted operating margin between 12% and 15%
Company projects full-year adjusted EPS of more than $8
Allegiant plans to acquire Sun Country Airlines to enhance its leisure carrier position
Result Drivers
DEMAND SURGE - December demand increased sharply, improving year-over-year unit revenue by nearly six points versus Q3
COST EFFICIENCY - Allegiant reduced unit costs by over 6% for the full year, focusing on efficiency
NETWORK EXPANSION - Co announced 30 new nonstop routes and four new cities in Q4
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Slight Beat* | $2.61 bln | $2.59 bln (13 Analysts) |
FY Adjusted EPS | Beat | $3.80 | $2.96 (11 Analysts) |
FY EPS | -$2.48 | ||
FY Net Income | -$44.70 mln | ||
FY Operating Income | $37.20 mln | ||
FY Pretax Profit | -$54.90 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the airlines peer group is "buy"
Wall Street's median 12-month price target for Allegiant Travel Co is $100.00, about 7.8% above its February 3 closing price of $92.78
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release: ID:nPn4NCdxSa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)