Forge, Tennessee, on May 3, 1986, and earned the theme park industry's highest accolade, the Applause Award, in 2010. In 2022, 2024 and 2025, Dollywood was named by Tripadvisor as the #1 theme park in the country based on actual guest reviews. The park is located near Great Smoky Mountains National Park and has been recognized as a top U.S. theme park by USA Today on multiple occasions. Dollywood is open mid-March through early January and offers rides, attractions, shows and crafters inspired by and authen ...

Core Insights - Allegiant Travel Company (ALGT) experienced a significant stock increase of 69% following its Q4 2025 earnings release and outlook for 2026, indicating strong market performance and investor confidence [1]. Company Performance - The stock of Allegiant Travel Company has sharply outperformed the market since the last report, reflecting positive investor sentiment and growth potential in the airline sector [1]. Analyst Background - The analysis is provided by Dhierin-Perkash Bechai, an experienced aerospace, defense, and airline analyst with a background in aerospace engineering, focusing on identifying investment opportunities in the aerospace and airline industry [1].

Core Insights - Allegiant Travel Company (ALGT) experienced a significant stock increase of 69% following its Q4 2025 earnings release and outlook for 2026, indicating strong market performance and investor confidence [1] Company Summary - Allegiant Travel Company is positioned within the aerospace, defense, and airline sectors, showcasing substantial growth prospects [1] - The company’s recent earnings report has positively influenced its stock performance, outperforming market expectations [1] Analyst Background - The analysis is conducted by Dhierin-Perkash Bechai, an experienced aerospace, defense, and airline analyst with a background in aerospace engineering [1] - The analyst aims to identify investment opportunities within the aerospace and airline industry, providing data-informed insights [1]

Core Insights - Diamond Hill Capital's "Small Cap Strategy" reported a favorable performance in Q4 2025, with the Russell 2000 Index gaining 2.19% and a 12.81% increase for the year [1] - The firm emphasizes a focus on resilient businesses capable of sustaining earnings amid market volatility as it heads into 2026 [1] Company Highlights - Allegiant Travel Company (NASDAQ:ALGT) was identified as a significant contributor to the Small Cap Strategy, with a stock price of $99.86 as of February 4, 2026 [2] - Allegiant Travel Company achieved a 7.99% return in the past month and an 11.84% increase over the past year, with a market capitalization of $1.829 billion [2] - The company reported strong near-term demand trends in Q4 2025, benefiting from a softer jet fuel environment, which positively influenced investor sentiment regarding margin improvement [3] Hedge Fund Interest - Allegiant Travel Company was held by 22 hedge fund portfolios at the end of Q3 2025, a slight decrease from 23 in the previous quarter [3] - Despite its potential, the company is not among the 30 most popular stocks among hedge funds, with the firm suggesting that certain AI stocks may offer better upside potential and lower downside risk [3]

Financial Performance - Allegiant Travel reported revenue of $656.19 million for the quarter ended December 2025, reflecting a 4.5% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $2.86, up from $2.10 in the same quarter last year, representing a significant EPS surprise of +42.64% compared to the consensus estimate of $2.01 [1] Comparison with Estimates - The reported revenue exceeded the Zacks Consensus Estimate of $649.84 million, resulting in a surprise of +0.98% [1] - Key metrics such as available seat miles (ASMs) and operating expenses were compared against analyst estimates, with ASMs of 5.18 billion surpassing the average estimate of 5.14 billion [4] Operational Metrics - The airline operating cost per available seat mile (CASM), excluding fuel, was reported at 8.01 cents, better than the average estimate of 8.42 cents [4] - Total passenger revenue per available seat mile (TRASM) was 12.67 cents, slightly above the average estimate of 12.63 cents [4] - The load factor was reported at 81.2%, lower than the average estimate of 83.1% [4] Revenue Breakdown - Operating revenues from fixed fee contracts were $25.52 million, exceeding the average estimate of $21.21 million, marking an 8.4% year-over-year increase [4] - Passenger operating revenues were $595.55 million, slightly below the average estimate of $596.63 million, but still reflecting a 7.6% year-over-year increase [4] - Revenues from third-party products were reported at $34.94 million, compared to the average estimate of $35.89 million, indicating an 8.5% year-over-year change [4] Stock Performance - Allegiant Travel's shares returned -0.5% over the past month, while the Zacks S&P 500 composite increased by +0.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - Allegiant Travel reported quarterly earnings of $2.86 per share, exceeding the Zacks Consensus Estimate of $2.01 per share, and showing an increase from $2.1 per share a year ago, resulting in an earnings surprise of +42.64% [1] - The company achieved revenues of $656.19 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.98% and increasing from $627.71 million year-over-year [2] - Allegiant Travel has outperformed the S&P 500, with shares rising about 8.8% since the beginning of the year compared to the S&P 500's gain of 1.1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $2.23 on revenues of $688.39 million, and for the current fiscal year, it is $7.20 on revenues of $2.72 billion [7] - The Zacks Industry Rank for Transportation - Airline is in the top 17% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Data and Key Metrics Changes - The company reported a fourth-quarter net income of $50.1 million, resulting in airline-only earnings of $2.72 per share, exceeding the guided range of $2 per share [21] - Full-year 2025 consolidated net income was $70.3 million or $3.80 per share, with airline earnings at $93.8 million, yielding $5.07 per share [21] - Adjusted operating margin for the fourth quarter was 12.9%, among the best in the industry, with unit costs falling more than 6% for the year [6][8] Business Line Data and Key Metrics Changes - Total airline revenue for 2025 was over $2.5 billion, up approximately 4.3% year-over-year, with fourth-quarter revenue at approximately $656 million, up 7.6% compared to Q4 2024 [12][13] - The airline segment produced an EBITDA margin of nearly 22% in the fourth quarter, underscoring the earnings power of the model in a favorable leisure demand environment [21] - Fixed fee revenue contribution in Q4 was a record $25.5 million, despite increased scheduled service utilization [13] Market Data and Key Metrics Changes - Current leisure demand is strong, with significant improvement observed over the holiday period, continuing into January [9] - The company expects a 13.5% adjusted operating margin in Q1 2026, indicating strong demand trends [9] - The company anticipates a slight decline in capacity for 2026, with a focus on leveraging existing infrastructure to drive revenue per available seat mile (TRASM) improvement [27] Company Strategy and Development Direction - The company is committed to balancing growth with profitability, focusing on "earning the right to grow" [9] - The acquisition of Sun Country is seen as a strategic move to build a leading leisure airline in the U.S., with a thoughtful integration plan underway [10] - The company aims to leverage modern technology platforms to enhance operational efficiency and customer experience [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties, with a focus on maintaining a strong financial position [27][28] - The company is optimistic about the demand environment, with expectations for continued revenue growth and margin expansion [9][27] - Management highlighted the importance of operational excellence and team dedication in achieving strong performance [11] Other Important Information - The company ended the year with total available liquidity of $1.1 billion and reduced net leverage to 2.3x, nearing pre-COVID levels [24] - Capital expenditures for 2026 are expected to be approximately $750 million, with a focus on aircraft-related spending [25] - The company has a healthy order book with over 100 new technology aircraft, positioning it well for future growth [29] Q&A Session Summary Question: What is driving the exceptional demand in January? - Management noted that improved visitation and bookings are contributing to strong demand, with expectations for continued strength through spring break and Easter [31][32] Question: How does the company view RASM and CASM for the year? - Management expects TRASM to improve more than CASM, reinforcing margin expansion [35] Question: What is the outlook for the first quarter versus the full year? - Management indicated that current strong trends are not fully assumed in the full-year guidance, reflecting a conservative approach [40][41] Question: How is the company planning to finance the merger with Sun Country? - Management stated that cash balances are ahead of schedule and could be used for the cash consideration of the merger, with options for refinancing existing debt [51][52] Question: What opportunities exist with the MAX aircraft and the merger? - Management expressed excitement about the flexibility and potential synergies from the combined fleet, emphasizing the strategic advantages of owning their aircraft [57][93]

Financial Data and Key Metrics Changes - The fourth quarter financial results exceeded original expectations, with a total airline revenue of approximately $656 million, up 7.6% compared to Q4 2024, marking a record high for the company [12][13] - For the full year 2025, consolidated net income was $70.3 million, or $3.80 per share, while airline-only earnings were $93.8 million, yielding $5.07 per share [21] - The adjusted operating margin for the fourth quarter was 12.9%, among the best in the industry, with unit costs falling more than 6% for the year [6][8] Business Line Data and Key Metrics Changes - The airline segment produced net income of $50.1 million in Q4, driven by lower-than-expected salaries and benefits, and a stronger revenue environment [21] - The fixed fee revenue contribution in Q4 was $25.5 million, another quarterly record, despite increased scheduled service utilization [13] - The airline generated over $143 million of EBITDA during Q4, producing an EBITDA margin of nearly 22% [21] Market Data and Key Metrics Changes - Current leisure demand is strong, with significant improvement observed over the holiday period, continuing into January [9] - The company expects a 13.5% adjusted operating margin in Q1 2026, indicating strong demand and operational efficiency [9] - The demand environment observed in Q4 2025 extended into early January, with winter storms impacting bookings but a recovery beginning to take shape [26] Company Strategy and Development Direction - The company plans to focus on existing infrastructure and commercial initiatives to drive TRASM improvement and margin expansion in 2026, without fleet growth [9] - The acquisition of Sun Country is seen as a strategic step to build a leading leisure airline in the U.S., with a thoughtful integration plan underway [10] - The company aims to maintain a net leverage ratio between 2 and 2.5 turns, with a focus on refinancing opportunities and maintaining cash balances for operational flexibility [82][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate various demand environments and enhance customer experiences, supported by a strong financial position [29] - The company is cautious about the continuation of strong demand trends observed in January, indicating a conservative approach to full-year guidance [40][41] - Management highlighted the importance of balancing growth with profitability, emphasizing the need to earn the right to grow [9] Other Important Information - The company successfully integrated the MAX aircraft into its fleet, which is expected to provide a 20% fuel burn advantage compared to the A320 [7] - The company ended the year with total available liquidity of $1.1 billion and reduced total debt to just under $1.8 billion [24] - Capital expenditures for 2026 are expected to be approximately $750 million, including significant investments in aircraft-related CapEx [25] Q&A Session Summary Question: What is driving the exceptional demand in January? - Management noted that improved visitation and bookings are contributing to strong demand, with expectations for continued strength through spring break and Easter [31][32] Question: How does the company view RASM and CASM for the year? - Management expects TRASM to improve more than CASM, reinforcing margin expansion [35] Question: What is the outlook for the first quarter and full year? - The company is guiding for Q1 EPS of approximately $3, with a conservative full-year EPS expectation of at least $8 [26][27] Question: How is the company approaching the merger with Sun Country? - Management indicated that the merger is expected to close in the second half of 2026, with plans to finance the cash component through a combination of cash balances and potential refinancing [50][51] Question: What are the expectations for new market development? - Historically, new markets have a unit revenue drag of 10%-15% relative to the rest of the system, and this is expected to remain consistent [91]

Financial Data and Key Metrics Changes - The company reported a fourth-quarter net income of $50.1 million, resulting in airline-only earnings of $2.72 per share, exceeding the guided range of $2 per share at the midpoint [19] - Full-year 2025 consolidated net income was $70.3 million or $3.80 per share, with airline earnings of $93.8 million yielding $5.07 per share [19] - Adjusted operating margin for the fourth quarter was 12.9%, among the best in the industry, with unit costs falling more than 6% for the year [4][7] Business Line Data and Key Metrics Changes - Total airline revenue for 2025 was over $2.5 billion, up approximately 4.3% from 2024, with fourth-quarter revenue of approximately $656 million, up 7.6% year-over-year [11][12] - Scheduled service ASMs grew 10.5% year-over-year in the fourth quarter, while CASM decreased 2.6% to $0.1267 [12][20] - The fixed fee revenue contribution in the fourth quarter was a record $25.5 million [11] Market Data and Key Metrics Changes - Current leisure demand is strong, with significant improvement observed over the holiday period, continuing into January [8] - The company expects a 13.5% adjusted operating margin in the first quarter of 2026, indicating strong demand and operational efficiency [8][25] - The company plans to maintain a flat fleet count in 2026 while focusing on existing infrastructure and commercial initiatives to drive revenue improvements [8][24] Company Strategy and Development Direction - The company is committed to balancing growth with profitability, referring to this as "earning the right to grow" [8] - The acquisition of Sun Country is seen as a strategic move to build a leading leisure airline in the U.S., with a focus on capturing synergies efficiently [9] - The company is transitioning to modern technology platforms to enhance operational capabilities and customer experience [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties while maintaining strong operational performance [25] - The company anticipates continued improvements in TRASM relative to CASM, reinforcing margin expansion for 2026 [33] - Management highlighted the importance of leveraging the MAX aircraft for operational efficiency and cost savings [5][20] Other Important Information - The company ended the year with total available liquidity of $1.1 billion and reduced net leverage to 2.3 times, nearing pre-COVID levels [22][23] - Capital expenditures for 2026 are expected to be approximately $750 million, including significant investments in aircraft [24][80] Q&A Session Summary Question: What is driving the exceptional demand in January? - Management noted that improved visitation and bookings are contributing to strong demand, with expectations for continued strength through spring break and Easter [30] Question: How does the company view RASM and CASM for the year? - Management expects TRASM to improve more than CASM, reinforcing margin expansion [33] Question: What is the outlook for the first quarter and full year? - The company is guiding for earnings per share of approximately $3 in the first quarter and at least $8 for the full year, with a conservative approach due to macro uncertainties [25][39] Question: How is the company deploying the MAX aircraft? - The company has shifted to longer-haul flying with the MAX aircraft, contributing positively to performance [54] Question: What is the strategy regarding the merger with Sun Country? - Management indicated that the merger is expected to close in the second half of 2026, with plans to finance the cash component through a combination of cash balances and potential refinancing [49][81]

Core Insights - Allegiant Travel Company reported a fourth quarter 2025 GAAP diluted earnings per share of $1.73 and an adjusted airline-only diluted earnings per share of $2.72, while the full-year 2025 GAAP diluted loss per share was $(2.48) [1][2] Financial Performance - Total operating revenue for the fourth quarter of 2025 was $656.2 million, a 4.5% increase from $627.7 million in the fourth quarter of 2024 [5][7] - Total operating expenses decreased by 33.9% to $589.3 million from $891.7 million year-over-year [5][7] - The company achieved an operating income of $66.8 million compared to a loss of $264.0 million in the previous year [5][7] - For the full year 2025, total operating revenue was $2.606 billion, up 3.7% from $2.513 billion in 2024 [7][27] - The full-year adjusted diluted earnings per share was $3.80, a 53.2% increase from $2.48 in 2024 [7][27] Operational Highlights - Allegiant achieved a 12.9% adjusted airline-only operating margin in Q4 2025, exceeding initial guidance [2][4] - The company reported a controllable completion factor of 99.9% in 2025, leading the industry [3] - Demand accelerated sharply in December 2025, resulting in a nearly six-point sequential improvement in year-over-year unit revenue compared to Q3 2025 [2] Future Outlook - For Q1 2026, the company expects a 13.5% adjusted operating margin, representing a four-point improvement over the prior year [4] - Allegiant anticipates full-year adjusted earnings per share of more than $8, a 60% increase year-over-year [4] - The company announced plans to acquire Sun Country Airlines, which is expected to enhance its position as a leading leisure carrier in the U.S. [5] Balance Sheet and Liquidity - As of December 31, 2025, total available liquidity was $1.1 billion, including $838.5 million in cash and investments [11] - Total debt at the end of 2025 was $1.8 billion, with net debt of $961.1 million [11] Capital Expenditures - Fourth quarter capital expenditures totaled $56.7 million, including $35.9 million for aircraft-related capital expenditures [11] - The company plans to invest between $570 million and $590 million in aircraft-related capital expenditures for the full year 2026 [13] Customer Engagement - Allegiant ended the quarter with 21 million active Allways Rewards members and expanded its network by announcing 30 new nonstop routes [11] - The company ranked number 2 among major U.S. carriers in the Wall Street Journal's "The Best and Worst Airlines of 2025" [11]