Shares of Controladora Vuela Compania de Aviacion SAB de CV (VLRS), also known as Volaris, are soaring 5.18% in Tuesday's trading session following the release of its better-than-expected third-quarter 2025 earnings report. The Mexican low-cost airline's performance has caught investors' attention, driving the stock higher despite recent market challenges.
Volaris reported adjusted earnings of 10 cents per share for the quarter ended September 30, significantly outperforming the mean expectation of eight analysts who had forecast a loss of 6 cents per share. This earnings beat comes as a pleasant surprise to investors, especially considering the company's recent stock performance, which had seen a 4.6% decline this quarter and a 7.9% drop year-to-date prior to this announcement.
While the company's revenue fell 3.6% to $784 million compared to the same quarter last year, slightly missing analysts' expectations of $789.10 million, the focus remains on the unexpected profitability. The positive earnings report suggests that Volaris has been able to manage its costs effectively in a challenging operating environment for airlines. Wall Street's reaction indicates that investors are encouraged by the company's ability to deliver profits despite the slight revenue shortfall.
Looking ahead, analysts maintain an optimistic outlook on Volaris. The current average analyst rating on the shares is "buy," with 9 "strong buy" or "buy" recommendations, 4 "hold" ratings, and no "sell" or "strong sell" ratings. The consensus price target stands at $8.00, representing an 11.9% upside from the last closing price of $7.05. This positive sentiment from analysts, coupled with the earnings beat, appears to be fueling the stock's impressive intraday gain.