Allegiant Travel's 2025 revenue slightly beats estimates

Reuters05:09
Allegiant Travel's 2025 revenue slightly beats estimates

Overview

  • Travel company's 2025 revenue slightly beat analyst expectations

  • Adjusted EPS for 2025 beat analyst expectations

  • Company announced merger agreement to acquire Sun Country Airlines

Outlook

  • Allegiant expects first-quarter adjusted operating margin between 12% and 15%

  • Company projects full-year adjusted EPS of more than $8

  • Allegiant plans to acquire Sun Country Airlines to enhance its leisure carrier position

Result Drivers

  • DEMAND SURGE - December demand increased sharply, improving year-over-year unit revenue by nearly six points versus Q3

  • COST EFFICIENCY - Allegiant reduced unit costs by over 6% for the full year, focusing on efficiency

  • NETWORK EXPANSION - Co announced 30 new nonstop routes and four new cities in Q4

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

FY Revenue

Slight Beat*

$2.61 bln

$2.59 bln (13 Analysts)

FY Adjusted EPS

Beat

$3.80

$2.96 (11 Analysts)

FY EPS

-$2.48

FY Net Income

-$44.70 mln

FY Operating Income

$37.20 mln

FY Pretax Profit

-$54.90 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the airlines peer group is "buy"

  • Wall Street's median 12-month price target for Allegiant Travel Co is $100.00, about 7.8% above its February 3 closing price of $92.78

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPn4NCdxSa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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