Dahlman Rose Reiterates Hold Rating on Republic Airways Holdings
In a report published Wednesday, Dahlman Rose & Co. reiterated its Hold rating on Republic Airways Holdings (NASDAQ: RJET).
Dahlman Rose noted, “Total unit revenue growth at Republic's Frontier subsidiary is expected to increase by 5% y/y, up from prior guidance of up 4% y/y. Frontier non-fuel costs are expected to be down by 8%, compared to prior guidance of down 5%. As a result of higher revenues and lower costs, Frontier generated a profit margin of 2% to 3% in the quarter. The Republic Airways subsidiary is expected to report a pretax profit of $20 MM to $25MM, up from prior 4Q12 guidance of $15 MM to $20MM. Management anticipates 4Q12 EPS in a range of $0.30 to $0.36, up from prior guidance of $0.18 to $0.24 and compared to the consensus estimate of $0.17 and our prior estimate of $0.20.”
Republic Airways Holdings closed on Monday at $5.68.
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