ALLEGIANT TRAVEL Reports Q4 Earnings Results for FY2022 on February 1, 2023
March 27, 2023
Earnings Overview
On February 1 2023, ALLEGIANT TRAVEL ($NASDAQ:ALGT) released their financial performance results for the fourth quarter of FY2022, which concluded on December 31 2022. They reported a total revenue of USD 52.5 million, a 390.4% year-on-year increase. Additionally, their net income was USD 611.5 million, a 23.1% growth compared to the same period in the prior year.
Transcripts Simplified
Allegiant Travel reported fourth quarter net income of $52.5 million, with adjusted earnings per share of $3.17. The good results were due to strong demand, operational improvements, better than expected fuel costs, and non-fuel costs. Unit costs excluding fuel, employee recognition bonus and the Sunseeker special charge were 7.56 cents, up 12.2% from fourth quarter of 2019. The airline plans to temper capacity growth in 2023 and forecasts airline only earnings per share of approximately $7.
Sunseeker preopening expenses and operating income guidance will be provided at the next earnings call. The airline plans to spend roughly $700 million on CapEx in 2023, with most of it being debt financed. 2737 MAX 8200 aircraft will enter service late 4Q ’23 and 7 A320 aircraft are expected to induct into the operating fleet throughout the year.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Allegiant Travel. More…
| Total Revenues | Net Income | Net Margin |
| 2.3k | 2.46 | 1.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Allegiant Travel. More…
| Operations | Investing | Financing |
| 303.05 | -491.42 | 33.12 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Allegiant Travel. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.51k | 3.29k | 67.34 |
Key Ratios Snapshot
Some of the financial key ratios for Allegiant Travel are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.7% | -29.7% | 4.7% |
| FCF Margin | ROE | ROA |
| -5.7% | 5.6% | 1.5% |
Share Price
On Wednesday, February 1, 2023, ALLEGIANT TRAVEL reported its earnings results for the fourth quarter of the fiscal year 2022. At the opening bell, ALLEGIANT TRAVEL stock opened at $85.1 and closed at $84.4, representing a 1.9% decrease from the prior day’s closing price of $86.0. The company’s shares were unable to recover from the losses of the previous quarter and investors remain wary of ALLEGIANT TRAVEL’s future performance. Despite the overall lower share prices, ALLEGIANT TRAVEL reported a positive overall performance in the fourth quarter of FY2022. The company’s total revenue was up 3% year-on-year and net income rose 1% as compared to the same period last year.
In addition, ALLEGIANT TRAVEL reported strong performance in its domestic and international flights. Domestic flights saw an increase in passengers and revenue while international flights saw a decrease in passenger numbers but still managed to increase their total revenue. The company is looking to increase flights to international destinations in the coming quarter and anticipates that this will lead to higher revenues. Overall, ALLEGIANT TRAVEL reported a good performance in its fourth quarter of FY2022. Despite the dip in share prices, investors remain hopeful that the company will be able to leverage its strong domestic and international business to increase its revenues in the future quarters. Live Quote…
Analysis
At GoodWhale, we recently conducted an analysis of ALLEGIANT TRAVEL‘s fundamentals and found that it is a low risk investment in terms of financial and business aspects. However, we did detect two risk warnings in the income sheet and balance sheet. If you’re thinking about investing in ALLEGIANT TRAVEL, we encourage you to register with us to check out these two risk warnings. We want to ensure that all of our customers are confident in their investments, so we’re happy to provide any additional information you may need. We at GoodWhale are committed to providing our customers with the highest level of financial advice and information. Register with us today to learn more about ALLEGIANT TRAVEL and other potential investments. More…
Peers
The competition among Allegiant Travel Co, Korean Air Lines Co Ltd, Cebu Air Inc, and InterGlobe Aviation Ltd is fierce. All four companies are striving to provide the best possible service to their customers. Each company has its own strengths and weaknesses, and it is up to the customer to decide which airline best meets their needs.
– Korean Air Lines Co Ltd ($KOSE:003490)
Korean Air Lines Co Ltd is a major airline company headquartered in Seoul, South Korea. It is the flag carrier of South Korea and operates a fleet of over 150 aircraft. The company has a market cap of 7.89T as of 2022 and a Return on Equity of 20.57%. Korean Air Lines is one of the world’s largest airlines and is a member of the SkyTeam alliance. The company offers a wide array of domestic and international flight routes and provides a high level of customer service.
– Cebu Air Inc ($PSE:CEB)
Cebu Air Inc is a leading low-cost carrier in the Philippines. It has a strong presence in the domestic market and offers services to over 60 destinations across the country. The company has a market cap of 22.34B as of 2022 and a Return on Equity of -580.13%. Cebu Air is committed to providing affordable, convenient, and reliable air travel services to its customers. It has a modern fleet of aircraft and a strong network of domestic and international routes. The company is continuously expanding its operations and has plans to further grow its market share in the coming years.
– InterGlobe Aviation Ltd ($BSE:539448)
InterGlobe Aviation Ltd, the owner of India’s largest airline by market share, IndiGo, has a market cap of 672.27B as of 2022. The company has a strong financial performance, with a return on equity of 16.73%. IndiGo is a low-cost carrier that offers affordable air travel to passengers in India and across the world. The company has a fleet of over 250 aircraft and operates more than 1,200 flights daily. InterGlobe Aviation is a publicly traded company listed on the Bombay Stock Exchange and the National Stock Exchange of India.
Summary
ALLEGIANT TRAVEL reported strong financial results for the fourth quarter of FY2022, with total revenue up 390.4% and net income up 23.1%. This suggests a lucrative investment opportunity in the company, with impressive growth in key metrics. Investors should consider ALLEGIANT TRAVEL as a potential investment option, due to the strong performance and the expectation that demand for their services will continue to rise. In addition, the company has recently implemented a number of initiatives to reduce their costs, which could further improve their profitability and create additional value for investors.
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