Allegiant Travel Increases Sales but Misses Estimates on Earnings

Allegiant Travel (Nasdaq: ALGT  ) reported earnings on July 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Allegiant Travel met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share increased.

Gross margins grew, operating margins dropped, net margins dropped.

Revenue details
Allegiant Travel reported revenue of $255.8 million. The eight analysts polled by S&P Capital IQ looked for sales of $256.8 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $231.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.34. The 12 earnings estimates compiled by S&P Capital IQ anticipated $1.37 per share. GAAP EPS of $1.34 for Q2 were 3.1% higher than the prior-year quarter's $1.30 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 30.2%, 30 basis points better than the prior-year quarter. Operating margin was 16.8%, 130 basis points worse than the prior-year quarter. Net margin was 10.1%, 80 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $226.0 million. On the bottom line, the average EPS estimate is $1.03.

Next year's average estimate for revenue is $997.6 million. The average EPS estimate is $5.12.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 172 members out of 215 rating the stock outperform, and 43 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Allegiant Travel a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allegiant Travel is hold, with an average price target of $97.89.

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