Allegiant Travel's 2025 revenue slightly beats estimates

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

*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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