Allegiant Travel (NASDAQ:ALGT) Releases Earnings Results

Allegiant Travel (NASDAQ:ALGT) issued its quarterly earnings data on Wednesday. The transportation company reported $2.72 EPS for the quarter, beating the consensus estimate of $2.04 by $0.68, FiscalAI reports. Allegiant Travel had a negative net margin of 11.36% and a positive return on equity of 5.24%. The company’s revenue was up 4.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.10 earnings per share. Allegiant Travel updated its FY 2026 guidance to 8.000- EPS and its Q1 2026 guidance to 2.500-3.500 EPS.

Here are the key takeaways from Allegiant Travel’s conference call:

• Allegiant closed 4Q with results beating expectations and a strong margin profile — 4Q adjusted operating margin of 12.9% — and is guiding to >$8 of adjusted EPS for full-year 2026 (≈+60% YoY).
• The Boeing 737 MAX integration is delivering material efficiency gains (management cites roughly a 20% fuel burn advantage vs. A320s) and is expected to be a meaningful margin tailwind as MAX flying ramps.
• Balance sheet strength improved: net leverage fell to 2.3x after $259M of debt repayments, available liquidity of ~$1.1B, and an unencumbered pool of aircraft/engines valued at >$1B.
• 2026 capacity is being managed conservatively — no standalone fleet growth, full-year ASMs expected down ~0.5% (1Q ASMs down ~5.7%) and three MAX deliveries delayed, which may limit near-term revenue upside.
• Allegiant plans to acquire Sun Country in H2 2026 and highlights cultural/fleet fit and synergy potential, but the transaction still requires regulatory and shareholder approvals and carries integration risk.

Allegiant Travel Stock Performance

Shares of NASDAQ:ALGT traded up $7.08 during midday trading on Wednesday, hitting $99.86. The company had a trading volume of 1,267,660 shares, compared to its average volume of 537,891. Allegiant Travel has a 12-month low of $39.80 and a 12-month high of $100.46. The company has a fifty day moving average of $86.05 and a two-hundred day moving average of $69.73. The company has a market cap of $1.83 billion, a price-to-earnings ratio of 30.42, a PEG ratio of 0.25 and a beta of 1.64. The company has a debt-to-equity ratio of 1.76, a current ratio of 0.98 and a quick ratio of 0.95.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Par Capital Management Inc. raised its stake in Allegiant Travel by 11.1% during the 2nd quarter. Par Capital Management Inc. now owns 584,996 shares of the transportation company’s stock valued at $32,146,000 after purchasing an additional 58,566 shares during the period. Franklin Resources Inc. raised its position in shares of Allegiant Travel by 15.4% during the third quarter. Franklin Resources Inc. now owns 549,287 shares of the transportation company’s stock valued at $33,380,000 after buying an additional 73,360 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its position in shares of Allegiant Travel by 14.2% during the third quarter. Jacobs Levy Equity Management Inc. now owns 433,668 shares of the transportation company’s stock valued at $26,354,000 after buying an additional 53,800 shares during the last quarter. UBS Group AG lifted its holdings in shares of Allegiant Travel by 25.8% in the third quarter. UBS Group AG now owns 327,828 shares of the transportation company’s stock worth $19,922,000 after buying an additional 67,327 shares in the last quarter. Finally, Bridgeway Capital Management LLC boosted its position in shares of Allegiant Travel by 2.8% during the third quarter. Bridgeway Capital Management LLC now owns 162,860 shares of the transportation company’s stock worth $9,897,000 after acquiring an additional 4,480 shares during the last quarter. Institutional investors own 85.81% of the company’s stock.

Allegiant Travel News Summary

Here are the key news stories impacting Allegiant Travel this week:

• Positive Sentiment: Company-reported adjusted/airline-only results came in ahead of consensus, with multiple outlets publishing beats on quarterly EPS (Zacks reported $2.86 vs. $2.01 estimate). This supports the narrative of improving profitability on an airline-only basis and likely drove buying interest. Zacks: Allegiant Tops Q4
• Positive Sentiment: Management raised Q1 2026 EPS guidance to $2.50–$3.50 (consensus ~ $2.27). Higher near-term guidance signals confidence in demand and unit economics for the period and is a clear catalyst supporting the rally.
• Positive Sentiment: Full‑year FY2026 EPS guidance was increased (company gave an FY guide that exceeds the prior consensus ~ $7.27), indicating management expects improved full-year profitability — a material positive for forward valuation.
• Neutral Sentiment: Official press release: GAAP Q4 diluted EPS was $1.73 while adjusted airline-only EPS was $2.72; full‑year adjusted metrics also improved (adjusted diluted EPS and adjusted airline-only EPS). Management framed the results as “momentum,” which supports the raised guidance but leaves questions about GAAP volatility. PR Newswire: Q4 & FY2025 Results
• Neutral Sentiment: Reported short-interest data in recent filings appears non‑informative (odd/zero values reported); not a material near-term driver based on available data.
• Negative Sentiment: Underlying GAAP and operating metrics showed stress: a Quiver summary flagged GAAP diluted EPS of $1.73 (below some estimates), operating profit and net income declined YoY, operating cash flow turned negative and capex jumped ~144% YoY — higher investment that tightens near‑term cash flow. Those items create risk if demand softness or cost pressure emerges. QuiverQuant: Q4 Earnings & Cash Flow
• Negative Sentiment: Zacks downgraded the shares from “strong-buy” to “hold,” which could temper momentum from the beats and guidance as some investors reassess valuation and execution risk. Zacks

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on ALGT shares. Zacks Research lowered Allegiant Travel from a “strong-buy” rating to a “hold” rating in a research report on Monday. Wall Street Zen upgraded shares of Allegiant Travel from a “sell” rating to a “hold” rating in a research note on Sunday, December 28th. Deutsche Bank Aktiengesellschaft upgraded shares of Allegiant Travel from a “hold” rating to a “buy” rating and set a $105.00 price objective on the stock in a research report on Friday, December 12th. Barclays raised their target price on shares of Allegiant Travel from $60.00 to $95.00 and gave the stock an “equal weight” rating in a report on Monday, January 12th. Finally, Raymond James Financial lowered shares of Allegiant Travel from a “strong-buy” rating to an “outperform” rating and boosted their target price for the company from $78.00 to $98.00 in a research note on Friday, December 19th. Four analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Allegiant Travel presently has a consensus rating of “Hold” and a consensus price target of $92.73.

Allegiant Travel Company Profile

Allegiant Travel Company is a holding company that operates Allegiant Air, a low‐cost leisure airline offering scheduled and charter air service. The company focuses on connecting underserved secondary markets with popular vacation destinations across the United States. By targeting price‐sensitive leisure travelers, Allegiant Air operates a point‐to‐point network that avoids the traditional hub‐and‐spoke model, providing non‐stop flights from smaller cities to resort and entertainment hubs.

In addition to its core flight operations, Allegiant Travel Company offers packaged travel services that include hotel accommodations, rental cars and attraction tickets through its online portal.