Market Overview

Earnings Preview: Allegiant Travel

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On Wednesday, October 28, Allegiant Travel (NASDAQ: ALGT) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Allegiant Travel's per-share loss will be near $4.88 on sales of $201.84 million, according to Wall Street analysts. In the same quarter last year, Allegiant Travel reported earnings per share of $2.7 on revenue of $436.51 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 280.74% decrease in the company's earnings. Revenue would have fallen 53.76% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -5.49 0.90 3.88 2.18
EPS Actual -5.96 2.05 3.72 2.70
Revenue Estimate 104.39 M 429.40 M 458.67 M 429.64 M
Revenue Actual 133.35 M 409.18 M 461.07 M 436.51 M

Stock Performance

Over the past 52-week period, shares of Allegiant Travel have declined 18.3%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Allegiant Travel is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: Earnings