Company Overview - Allegiant Travel (ALGT) is expected to report a year-over-year increase in earnings due to higher revenues for the quarter ended December 2024, with a consensus EPS estimate of $1.88, reflecting a significant change of +1609.1% [1][3] - Revenues are anticipated to reach $624.8 million, marking a 2.3% increase from the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised 8.81% higher in the last 30 days, indicating a positive reassessment by analysts [4] - The Most Accurate Estimate for Allegiant Travel is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +10.23%, suggesting a strong likelihood of beating the consensus EPS estimate [10][11] Earnings Surprise History - In the last reported quarter, Allegiant Travel was expected to post a loss of $1.85 per share but actually reported a loss of $2.02, resulting in a surprise of -9.19% [12] - Over the past four quarters, the company has surpassed consensus EPS estimates three times [13] Industry Context - In comparison, Southwest Airlines (LUV) is expected to report earnings of $0.45 per share for the same quarter, reflecting a year-over-year change of +21.6%, with revenues projected at $6.95 billion, up 1.8% from the previous year [17] - Southwest Airlines has also seen a significant revision in its EPS estimate, down 453.9% over the last 30 days, but still holds a positive Earnings ESP of 6.78% and a Zacks Rank of 2, indicating a likely earnings beat [18]

Group 1 - Allegiant Travel Company has scheduled its fourth quarter and full-year 2024 financial results conference call for February 4, 2025, at 4:30 p.m. EST [1] - A live broadcast of the conference call will be available on the company's Investor Relations website, and the webcast will be archived [1] - Allegiant is an integrated travel company with an airline at its core, focusing on connecting customers to important destinations with all-nonstop flights and low average fares [2] Group 2 - Allegiant Air has been linking travelers from small-to-medium cities to vacation destinations since 1999, offering base airfares that are less than half the cost of the average domestic roundtrip ticket [2] - The company's fleet serves communities across the nation, emphasizing affordability and accessibility in air travel [2]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Allegiant Travel (ALGT) - Allegiant Travel currently holds a Momentum Style Score of A, indicating strong momentum potential [3]. - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4]. Performance Metrics - Over the past week, ALGT shares increased by 7.46%, while the Zacks Transportation - Airline industry remained flat [6]. - In the last month, ALGT's price change was 20.59%, significantly outperforming the industry's 0.98% [6]. - Over the past quarter, ALGT shares rose by 60.6%, and over the last year, they increased by 36.12%, compared to the S&P 500's performance of 0% and 23.73%, respectively [7]. Trading Volume - ALGT's average 20-day trading volume is 248,061 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the last two months, 6 earnings estimates for ALGT have been revised upwards, while none have been revised downwards, boosting the consensus estimate from $0.96 to $2.29 [10]. - For the next fiscal year, 3 estimates have increased, with 1 downward revision noted [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, ALGT is recommended as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [12].

Company Overview - Allegiant Travel Company (ALGT) is currently positioned as an intriguing investment choice due to solid earnings estimate revisions and a favorable industry ranking [1][3]. - The company has experienced a significant increase in earnings estimates, with current quarter estimates rising from $0.61 to $1.74 per share, and current year estimates increasing from $0.96 to $2.29 per share [4]. Industry Context - The Transportation - Airline industry is currently ranked 24 out of more than 250 industries according to Zacks, indicating a strong position relative to other sectors [2]. - The positive trends in the industry suggest that a rising tide may benefit multiple companies within the sector, enhancing the attractiveness of investments in this space [2]. Investment Potential - Allegiant's recent earnings estimate revisions indicate a more bullish outlook from analysts for both the short and long term, contributing to its Zacks Rank of 2 (Buy) [4]. - The combination of a strong industry ranking and positive estimate revisions makes Allegiant a compelling option for investors seeking opportunities in the airline sector [5].

Core Viewpoint - Allegiant's efforts to expand its global reach and boost its top line are commendable, leading to impressive share performance, making it a timely investment opportunity [1] Factors Favoring ALGT Stock - The company's shares have surged 91.6% over the past six months, significantly outperforming the industry's 39.2% decline [2] Earnings Estimates and Rankings - The Zacks Consensus Estimate for earnings per share has been revised upward by 185.3% for Q4 2024, with increases of 138.5% and 11.3% for 2024 and 2025 respectively, indicating strong broker confidence [3] - ALGT currently holds a Zacks Rank 2 (Buy), reflecting its positive outlook [3] Industry Performance - Allegiant's industry has a Zacks Industry Rank of 26 out of 250, placing it in the top 10% of Zacks Industries, which is crucial as stock price movements are often tied to industry performance [4] Earnings Surprise History - Allegiant has a strong earnings surprise history, exceeding the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 57.4% [5] Growth Factors - The company is expanding with 44 new nonstop routes to meet the demand for affordable air travel, targeting popular vacation destinations and underserved markets [6] - Offering one-way fares as low as $39 aligns with its strategy to attract budget-conscious travelers, particularly during peak leisure periods [7] Revenue Initiatives - Allegiant's third bundled product offering has returned to pre-Navitaire take rates, generating an additional $1 in ancillary revenue per passenger [8] - The company is retrofitting over 50 aircraft with the Allegiant Extra premium product, expected to add $3 in ancillary revenue per passenger [10] - The Allegiant Allways Visa card is projected to exceed $140 million in total bank remuneration in 2024, with continued growth anticipated in 2025 [10]

Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. Has Allegiant Travel (ALGT) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.Allegiant Travel is a member of the Transportation sector. This group includes 131 individual stocks and currently holds a Zacks Sector Rank of #15. The Zacks Sector Rank consid ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves a ...

Earnings and Financial Performance - Earnings per share (EPS) for the airline is anticipated to be in the $2.50-$3.00 range, up from the prior view of $0.50-$1.50 [2] - Fourth-quarter consolidated EPS, excluding special items, is expected to be in the range of $1.75-$2.25, an improvement from the prior expectation of breakeven to $1.00 per share [2] - The Zacks Consensus Estimate for EPS is currently pegged at $1.06 [2] - Total system ASM is projected to gain 1.9% year-over-year, up from the prior view of 1.5% [12] - Operating margin is expected to increase to the 13-14% range, up from the prior forecast of 6-8% [12] - Total revenues for 2024 are forecasted to decline in the range of 3.5-4.5%, an improvement from the prior view of a 4-5% decline [13] Air-Travel Demand and Revenue - Fourth-quarter revenue per available seat mile (RASM) is expected to increase 5.5%-7% year-over-year, up from the previous forecast of 3.5%-5.5% [7] - Upbeat air-travel demand is contributing to the company's top line [10] - Southwest Airlines (LUV), American Airlines (AAL), and JetBlue Airways (JBLU) have also provided encouraging fourth-quarter 2024 guidance due to upbeat holiday travel demand [17] - AAL lifted its fourth-quarter 2024 adjusted EPS guidance due to favorable pricing and revenue environment [23] - JBLU anticipates its fourth-quarter revenues to decline in the range of 2%-5% year-over-year [23] Fleet and Capacity - The company took delivery of two incremental 737-MAX aircraft in November and anticipates ending 2024 with four MAX aircraft in service, up from the prior expectation of one [18] - ALGT aims to expand its fleet size to 125 by the end of 2024, up from the prior view of 122 [18] - Fourth-quarter capacity (measured in available seat miles) for scheduled service is expected to increase 1.8% year-over-year, up from the prior expectation of 1.5% [22] Valuation and Stock Performance - ALGT is trading at a discount compared to the industry based on its forward 12-month price-to-sales ratio, which is also below its median over the last five years [9] - The company has a Value Score of A [9] - Shares of ALGT have improved in double-digits over the past 90 days, outperforming its industry [21] Costs and Expenses - Total operating expenses rose 10.2% year-over-year during the first nine months of 2024, following a 3.6% increase in 2023 [15] - The fuel cost per gallon is suggested to be $2.50, with the average fuel cost per gallon for November 2024 estimated at $2.52 [24] - Fourth-quarter CASM, excluding fuel and special charges, is anticipated to decline 3.5% year-over-year [8] Liquidity and Debt - ALGT's total unrestricted cash and investments were $804.6 million at the end of the third quarter of 2024, significantly lower than its long-term debt and finance lease obligations of $1.77 billion [5] Other Financial Activities - ALGT executed the sale of its underutilized CFM engines in the fourth quarter for $15 million [8]

Allegiant Travel Company (ALGT) has unveiled encouraging fourth-quarter 2024 guidance. ALGT now anticipates its fourth-quarter capacity (measured in available seat miles) for scheduled service to increase 1.8% on a year-over-year basis. This marks an improvement from the prior expectation of 1.5%.Total system ASM is now projected to gain 1.9% on a year-over-year basis (prior view: up 1.5%).Operating margin is now expected to increase in the 13-14% range, which marks an improvement over the prior forecast of ...

LAS VEGAS, Dec. 12, 2024 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) today reported preliminary passenger traffic results for November 2024."Booking trends following the election continue to outpace our initial expectations," stated Drew Wells, Chief Commercial Officer of Allegiant Travel Company. "Demand recovery to hurricane-impacted destinations has been faster than expected, with demand to most impacted regions returning to normal. Additionally, close-in holiday demand during November exceed ...