Why Spirit Airlines Stock Flew Higher at the Open Today

Motley Fool04-16

Spirit updated its first-quarter guidance, detailing the impact of payments coming from RTX over engine issues. The update appears to have sparked speculation of a potential buyout among ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Spirit Airlines Stock Flew Higher at the Open Today\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-16 02:05 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2024/04/15/why-spirit-airlines-stock-flew-higher-at-the-open/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Spirit updated its first-quarter guidance, detailing the impact of payments coming from RTX over engine issues.\n\n\n\n\n\n\n\nThe update appears to have sparked speculation of a potential buyout among ...</p>\n\n<a href=\"https://www.fool.com/investing/2024/04/15/why-spirit-airlines-stock-flew-higher-at-the-open/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4008","symbol_name":"航空公司","start_time":0,"source_url":"https://www.fool.com/investing/2024/04/15/why-spirit-airlines-stock-flew-higher-at-the-open/","article_id":"2427882597","we_media_id":null,"thumbnails":["https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F772990%2Fsave-a319-source-save.jpg&op=resize&w=165&h=104"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2427882597","pubTimestamp":1713204300,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"The airline detailed the cash it will get from RTX because of engine issues.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4008":"航空公司","SAVE":"Spirit Airlines","BK4500":"航空公司"},"translate_title":"为什么精神航空公司的股票今天开盘上涨","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SAVE":1},"content_text":"Spirit updated its first-quarter guidance, detailing the impact of payments coming from RTX over engine issues.\n\n\n\n\n\n\n\nThe update appears to have sparked speculation of a potential buyout among investors, though there is no concrete evidence to back that up.\n\n\n\n\n\n\n\nThe most likely path for Spirit is to go it alone for now, and investors need to be aware of what that might mean for the stock.\n\nSpirit Airlines (SAVE 3.71%) has updated its first-quarter guidance just weeks before it intends to announce finalized results. The move appears to have excited speculation among Spirit investors, sending the shares soaring 13% at the open Monday before retreating back to up 3% as of 1:30 p.m.A routine announcement causes a big spikeSpirit shareholders have endured a lot of turbulence in recent years. The company came into 2024 hoping to complete a sale to JetBlue Airways, but in March the two sides called off the deal because of regulatory opposition.The termination left Spirit with the unenviable task of flying alone into some significant headwinds, including schedule disruptions caused by issues with RTX engines.On Monday, Spirit said it expects to recoup between $150 million and $200 million from RTX in damages over the engine issues, cash that will help improve the airline's liquidity. However, the accounting of those payments will temporarily depress margins and slightly affect quarterly results.Spirit said it now expects to post a first-quarter negative adjusted operating margin of between 14.5% and 13.5%, compared with previous guidance for a negative-15% to negative-12% margin. Revenue should come in at around $1.265 billion, in line with the previous forecast for sales of between $1.25 billion and $1.28 billion. The airline is scheduled to release final first-quarter numbers in early May.The update seemingly should not have caused an oversized reaction to the share price, and in premarket trading after the update was released, Spirit shares were actually down. But the update caused significant speculation on social media that the update was a precursor to announcing a new merger agreement, causing the shares to spike higher.Is Spirit Airlines a buy heading into earnings?A new deal is certainly possible. Frontier Group Holdings had tried to buy Spirit before JetBlue stepped in and would still be a logical partner. But there is no indication Frontier is focused on dealmaking, and the airline industry operating environment has gotten more treacherous in the quarters since that initial interest.More likely than not, Spirit will have to navigate through these engine disruptions and questions about the economy while managing a significant debt load on its own.Investors interested in buying in on merger speculation need to be aware that absent a buyout, it will be hard for Spirit shares to get airborne anytime soon.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2427882597"}