Allegiant Travel Q1 revenue beats estimates, co raises Q2 outlook

Overview

• U.S. leisure airline's Q1 revenue rose 4.8%, beating analyst expectations

• Adjusted EPS for Q1 jumped 78.7%, beating analyst expectations

• Company cites strong demand and higher yields despite reduced capacity

Outlook

• Allegiant expects Q2 system capacity down ~6.5% year-over-year

• Company sees Q2 adjusted operating margin of 0.0% to 2.0%

• Allegiant forecasts Q2 adjusted EPS between ($1.00) and ($0.00)

Result Drivers

• HIGHER YIELDS - Co said total yields rose over 20% year-over-year, driving record quarterly revenue despite reduced capacity

• OPERATIONAL RELIABILITY - Co cited a controllable completion rate exceeding 99.9% and strong operational performance as supporting improved margins

• COMMERCIAL INITIATIVES - Co said an 8.9% increase in co-brand credit card remuneration contributed to results

Company press release: ID:nPn2pZ3RYa

Key Details

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 34.2% above its April 29 closing price of $74.51

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

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