Core Insights - Controladora Vuela (VLRS) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, continuing a solid history of performance in the Zacks Transportation - Airline industry [1] Earnings Performance - Controladora Vuela has a strong track record of exceeding earnings estimates, with an average surprise of 74.21% over the last two quarters [2] - In the last reported quarter, the company achieved earnings of $0.32 per share, surpassing the Zacks Consensus Estimate of $0.19 per share, resulting in a surprise of 68.42% [3] - For the previous quarter, the company was expected to earn $0.05 per share but delivered $0.09 per share, yielding a surprise of 80% [3] Earnings Estimates and Predictions - Recent earnings estimates for Controladora Vuela have been revised upward, indicating positive sentiment among analysts [4] - The Zacks Earnings ESP for the company is currently positive at +4.27%, suggesting bullish expectations for near-term earnings [7] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced positive surprises nearly 70% of the time [5] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6] - A positive Earnings ESP combined with a Zacks Rank of 3 indicates a strong possibility of an earnings beat [7]

Company Analysis - Controladora Vuela Compañía de Aviación, S A B de C V (NYSE: VLRS) stands out in the Passenger Airlines sector as a company worth reviewing [1] - The company has garnered attention from analysts who hold a beneficial long position in its shares through stock ownership, options, or other derivatives [1] Analyst Perspective - The analysis of VLRS is based on the independent opinions of the analyst, who is not receiving compensation for the review other than from Seeking Alpha [1] - The analyst has no business relationship with any company mentioned in the article, ensuring an unbiased perspective [1] Disclosure - Seeking Alpha emphasizes that past performance is not indicative of future results and does not provide investment recommendations or advice [2] - The views expressed in the analysis may not reflect those of Seeking Alpha as a whole, and the platform is not a licensed securities dealer, broker, or investment adviser [2] - Analysts contributing to Seeking Alpha include both professional and individual investors who may not be licensed or certified by any regulatory body [2]

Core Insights - Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris) reported its preliminary traffic results for December 2024, highlighting a decrease in ASM capacity and a stable load factor despite ongoing engine inspections [1][2]. Traffic Performance - In December 2024, Volaris transported 2.8 million passengers with a load factor of 87.6%, which is a 2.2 percentage points increase compared to the previous year [2][4]. - RPMs for December 2024 declined by 2.1% year-over-year, with domestic RPMs down 8.3% and international RPMs up 9.0% [2][4]. - Year-to-date (YTD) total RPMs decreased by 11.8% from 33,449 million in 2023 to 29,505 million in 2024 [4]. Capacity and Load Factor - Volaris' ASM capacity decreased by 4.5% year-over-year, attributed to Pratt & Whitney engine inspections, but was slightly better than forecasted due to recovering more engines than anticipated [2][4]. - The load factor for domestic flights improved to 91.1%, up 1.8 percentage points from the previous year, while the international load factor increased to 82.9%, up 3.7 percentage points [4]. Operational Strategy - The CEO of Volaris emphasized the company's commitment to operational performance and customer satisfaction, achieving a 99% completion rate for the year despite challenges [3][4]. - The company aims to maintain network stability as it completes the required engine inspections, indicating a focus on reliability for customers [2][3]. Year-to-Date Summary - For the year 2024, domestic RPMs totaled 18,161 million, down 19.0% from 22,422 million in 2023, while international RPMs increased to 11,344 million, a 2.9% rise from 11,027 million [4]. - YTD ASMs decreased by 12.6%, from 38,890 million in 2023 to 33,990 million in 2024 [4].

Core Insights - Volaris reported a decrease in ASM capacity by 3.7% year-over-year in November 2024, attributed to Pratt & Whitney engine inspections and fewer aircraft groundings [2] - The company transported 2.6 million passengers in November, with a load factor of 86.8%, reflecting a 3.0 percentage point decrease from the previous year [2] - RPMs declined by 6.9% year-over-year, with domestic RPMs down 10.5% and international RPMs remaining effectively flat [2] Traffic Results - Domestic RPMs for November 2024 were 1,554 million, down from 1,736 million in November 2023, marking a decrease of 10.5% [2] - International RPMs were 963 million, slightly down by 0.3% from 967 million in November 2023 [2] - Total RPMs for November 2024 were 2,518 million, down 6.9% from 2,703 million in November 2023 [2] Capacity Metrics - Domestic ASMs were 1,688 million, a decrease of 9.6% from 1,867 million in November 2023 [2] - International ASMs increased by 6.0% to 1,212 million from 1,143 million in November 2023 [2] - Total ASMs for November 2024 were 2,899 million, down 3.7% from 3,011 million in November 2023 [2] Load Factor Analysis - The domestic load factor was 92.1%, down from 93.0% in November 2023, a decrease of 0.9 percentage points [2] - The international load factor was 79.5%, down 5.0 percentage points from 84.5% in November 2023 [2] - The overall load factor for November 2024 was 86.8%, a decrease of 3.0 percentage points from 89.8% in November 2023 [2] Passenger Statistics - Domestic passengers totaled 1,882 thousand in November 2024, down 8.1% from 2,047 thousand in November 2023 [2] - International passengers were 668 thousand, slightly up by 0.2% from 667 thousand in November 2023 [2] - Total passengers for November 2024 were 2,550 thousand, down 6.0% from 2,714 thousand in November 2023 [2] Management Commentary - The President and CEO of Volaris indicated that demand remains solid, particularly in the domestic market, and the company is strategically investing in the transborder market [3] - The company added transborder capacity in November in preparation for the December high season [3] - Volaris is managing low-season demand elasticity through capacity adjustments as necessary [3]

Core Insights - Volaris Group has announced the acquisition of Orkis, a France-based provider of Digital Asset Management software and related services [1][5] - Orkis has established itself as a key player in the digital asset management sector, particularly in government and defense markets [2][4] Company Overview - Orkis was founded in 1995 by André Capurro, who aimed to transition the company from hardware manufacturing to digital asset management software [2] - The company's main software platform, Ajaris, has been successful in securing contracts with the French government and blue-chip companies [2][4] - Ajaris offers a comprehensive web suite enhanced by artificial intelligence for content professionals, and is increasingly delivered in a SaaS model [4][5] Strategic Fit - Orkis is seen as a strong addition to Volaris Group's portfolio, aligning well with its focus on vertical market software providers [5] - Volaris Group aims to support Orkis in expanding its market presence in government administration, luxury industries, and local authorities [5] Technological Innovation - Ajaris includes features such as sovereign hosting, AI capabilities, and high-security technology, positioning it as a leading solution in the digital asset management space [4][5] - The company continues to offer on-premise solutions for specific sectors like defense and nuclear industries [4] Market Position - Orkis is recognized as a historical first mover and continuous innovator in the Digital Asset Management field in France [5] - The acquisition is expected to enhance Orkis's capabilities and market leadership in Europe [3]

Group 1 - The article emphasizes the importance of value investing, which identifies companies undervalued by the market using fundamental analysis and traditional valuation metrics [2][3] - Zacks has developed a Style Scores system to find stocks with specific traits, particularly focusing on the "Value" category for value investors [3] - Controladora Vuela Compania de Aviacion, B. de C.V. (VLRS) is highlighted as a strong value stock, currently holding a Zacks Rank of 1 (Strong Buy) and a Value grade of A [4][7] Group 2 - VLRS has a P/E ratio of 8.96, significantly lower than its industry's average P/E of 17.53, indicating potential undervaluation [4] - The stock's P/B ratio is 3.13, compared to the industry's average P/B of 4.94, further suggesting it may be undervalued [5] - VLRS's P/S ratio is 0.28, which is lower than the industry's average P/S of 0.53, reinforcing the notion of its undervaluation [6][7]

Acquisition Overview - Volaris Group announced the acquisition of 4D SAS, a company specializing in hybrid low-code development platforms, marking its expansion into the developer platforms market [1] - 4D SAS offers two platforms, 4D and Qodly, which enable rapid creation, customization, and deployment of mission-critical business applications, both on-premises and in the cloud [1] Technology and Market Impact - 4D's platforms combine visual and coding tools, allowing developers to work efficiently on both front and back ends, reducing development costs and enabling quick responses to customer needs [2] - The company supports developers globally with offices in France, the US, Germany, Japan, and Australia, and operates 4D Logiciels Morocco, which provides professional services and expertise [3] Strategic Vision and Leadership - Volaris Group's buy-and-hold investment philosophy aligns with 4D's long-term vision, aiming to support innovation and growth under the continued leadership of CEO Eric Teissandier [5] - 4D's founder, Laurent Ribardière, expressed pride in ensuring the company's continuity and growth by joining Volaris Group, benefiting the global developer community [6] Company Background and Innovation - 4D SAS was founded in 1984 with a focus on simplifying professional application creation using a graphical relational database, evolving into a leader in Rapid Application Development tools [7] - The company has a history of innovation, including the first integrated dynamic web database system in 1997 and the launch of the first end-to-end JavaScript platform in the 2000s [8] Customer Base and Industry Reach - 4D serves thousands of customers globally, including ISVs, independent developers, and corporate developers across industries such as healthcare, finance, education, and more [9] About Volaris Group - Volaris Group, an operating group of Constellation Software Inc, focuses on acquiring and strengthening vertical market technology companies, supporting growth through organic measures and complementary acquisitions [10][11]

After reaching an important support level, Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS) could be a good stock pick from a technical perspective. VLRS recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term movin ...

Controladora Vuela (VLRS) closed the last trading session at $7.98, gaining 13% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $12.98 indicates a 62.7% upside potential.The average comprises nine short-term price targets ranging from a low of $10 to a high of $17, with a standard deviation of $2.22. While the lowest estimate indicates an increase of 25.3% from the current price le ...

Core Viewpoint - Volaris (VLRS) is identified as one of the cheapest stocks in the airline industry, with a strong value score and attractive valuation metrics compared to its peers [1][3]. Financial Performance - In Q3 2024, Volaris reported earnings of 32 cents per share, significantly exceeding the Zacks Consensus Estimate of 19 cents, marking a 197% year-over-year increase [5]. - Total revenues reached $813 million, surpassing the Zacks Consensus Estimate of $795.9 million, driven by increased base fares and ancillary revenues per passenger [5]. - The average economic fuel costs decreased by 16.6% year over year, contributing positively to the bottom line [5]. Capacity and Load Factor - Despite a 14.4% reduction in available seat miles, the load factor was a healthy 87.4%, indicating strong demand [6]. - The airline anticipates a 13% decline in capacity for 2024 compared to 2023, with a significant portion of its fleet expected to remain grounded [7]. Growth Opportunities - Volaris is capitalizing on the opportunity to convert bus passengers into air travelers, viewing the long-distance bus network in Mexico as a growth avenue [8]. - The restoration of Mexico's safety rating by the United States has created opportunities in the transborder market [9]. Expansion Initiatives - Volaris announced a new non-stop service to Zacatecas, increasing its presence at Oakland International Airport to eight destinations, with flights scheduled to operate three times a week [10]. Stock Performance and Market Sentiment - Over the past three months, VLRS shares have outperformed both the industry and U.S. ultra-low-cost carrier Spirit Airlines, with a growth of 41.6% compared to 15.8% for the industry [11][13]. - Technical indicators show VLRS trading above its 50-day and 200-day moving averages, suggesting strong upward momentum and positive market sentiment [17]. Investment Outlook - Given the favorable conditions surrounding VLRS, it is recommended for investors to consider adding the stock to their portfolios for potential healthy returns, supported by a Zacks Rank 1 (Strong Buy) [19].