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Earnings 'Cheat Sheets' For JetBlue And Spirit Airlines

Earnings 'Cheat Sheets' For JetBlue And Spirit Airlines

In a report published Tuesday, Barclays analyst David E. Fintzen commented on the likely 2Q performance of JetBlue Airways Corporation (NASDAQ: JBLU) and Spirit Airlines Incorporated (NASDAQ: SAVE).

Analyst David Fintzen maintained an Overweight rating on Spirit Airlines, while reducing the price target from $98 to $91.

"2Q margins saw substantial impact from June weather, and we'll look for any commentary on how or if the operating problems impact ongoing costs and/or future growth. Forward implied TRASM guidance for both 3Q and 4Q disappointed, with SAVE calling out further competitor pricing actions," Fintzen wrote.

Spirit Airlines announced disappointing margin guidance for 2H. The company guided to 4Q operating margin of 20-23 percent, "implying a more sustained TRASM decline even as we overlap the initial Dallas competitive impact."

The EPS estimates for the current and the next fiscal years have been reduced from $4.93 to $4.10 and from $5.13 to $4.75, respectively.

Fintzen maintained an Equal Weight rating on JetBlue, with a price target of $25.

The Barclays report said that the company's RASM trends had been "relatively immune" to the broad industry pricing pressures, while adding that "we'll look for evidence of that trend continuing onto 2H."

Fintzen expects JetBlue to announce roughly flat PRASM guidance for 3Q, and CASM ex-fuel up 1-2 percent on ASM growth of about 8 percent. "These assumptions bring us to a 2Q EPS estimate of 49c."

The report further added that favorable capacity trends in NYC-Caribbean "should help JBLU in 2H."

The EPS estimate for the current fiscal year has been raised from $1.73 to $1.74, while that for the next fiscal year has been maintained at $1.91.

Latest Ratings for JBLU

Nov 2019Initiates Coverage OnBuy
Nov 2019MaintainsEqual-Weight
Oct 2019UpgradesNeutralOverweight

View More Analyst Ratings for JBLU
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