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

Allegiant Travel (NASDAQ:ALGT) posted its earnings results on Wednesday. The transportation company reported ($0.03) EPS for the quarter, topping the consensus estimate of ($0.44) by $0.41, FiscalAI reports. The business had revenue of $961.60 million during the quarter, compared to analysts’ expectations of $946.44 million. Allegiant Travel had a return on equity of 12.99% and a net margin of 1.65%. The firm’s revenue was up 71.2% on a year-over-year basis. During the same period in the previous year, the business earned ($2.09) earnings per share.

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 Trading Up 6.3%

NASDAQ:ALGT traded up $5.53 during trading hours on Friday, reaching $93.11. The company’s stock had a trading volume of 332,262 shares, compared to its average volume of 549,932. The firm has a market capitalization of $2.55 billion, a price-to-earnings ratio of 28.56, a PEG ratio of 0.29 and a beta of 1.65. The firm has a 50-day simple moving average of $75.38 and a 200-day simple moving average of $87.50. Allegiant Travel has a 1 year low of $61.36 and a 1 year high of $123.63. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.80 and a current ratio of 0.83.

Analyst Ratings Changes

ALGT has been the subject of a number of research analyst reports. Weiss Ratings upgraded Allegiant Travel from a “sell (d-)” rating to a “sell (d)” rating in a research report on Tuesday, August 11th. Wall Street Zen downgraded shares of Allegiant Travel from a “buy” rating to a “hold” rating in a research note on Saturday, August 15th. Zacks Research downgraded shares of Allegiant Travel from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 15th. Susquehanna cut their price target on shares of Allegiant Travel from $110.00 to $85.00 and set a “neutral” rating for the company in a research note on Wednesday, October 7th. Finally, Raymond James Financial reissued a “strong-buy” rating and issued a $120.00 price target on shares of Allegiant Travel in a research note on Thursday. One 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 given a Sell rating to the stock. Based on data from MarketBeat, Allegiant Travel currently has an average rating of “Moderate Buy” and an average price target of $124.15.

Allegiant Travel Company Profile

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.