ALLEGIANT TRAVEL Reports Second Quarter FY2023 Earnings Results on August 2, 2023
August 19, 2023
🌥️Earnings Overview
On August 2 2023, ALLEGIANT TRAVEL ($NASDAQ:ALGT) revealed their earnings results for the second quarter of FY2023, which ended on June 30 2023. Revenue totaled USD 683.8 million, representing an 8.6% increase from the same quarter of the previous fiscal year. Net income for the quarter was USD 88.5 million, a substantial increase compared to the 4.4 million observed in the same quarter of the prior year.
Market Price
The stock opened at $120.8 and closed favorably at $125.7, up by 3.4% from last closing price of 121.5. This was mainly driven by strong domestic leisure demand and an increase in international bookings for the summer season. These cost savings enabled ALLEGIANT TRAVEL to expand their capacity and take advantage of the strong demand in the market.
Overall, the second quarter FY2023 earnings report presented positive results for ALLEGIANT TRAVEL and a strong outlook for the remainder of the fiscal year. Investors responded positively to the report, driving the stock up 3.4% from its opening price. Live Quote…
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 |
| 2.51k | 145.94 | 6.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Allegiant Travel. More…
| Operations | Investing | Financing |
| 342.45 | -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 |
| 4.68k | 2.16k | 74.53 |
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 |
| 20.3% | 17.9% | 12.9% |
| FCF Margin | ROE | ROA |
| -6.0% | 15.2% | 4.3% |
Analysis
At GoodWhale, we conducted an analysis of ALLEGIANT TRAVEL‘s fundamentals. According to our Star Chart, ALLEGIANT TRAVEL has an intermediate health score of 6/10 with regard to its cashflows and debt, indicating that the company might be able to safely ride out any crisis without the risk of bankruptcy. We also found that ALLEGIANT TRAVEL is strong in growth, medium in asset, profitability and weak in dividend. Based on this evaluation, we classified ALLEGIANT TRAVEL as ‘cheetah’, a type of company we concluded that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors who are looking for potentially high returns but are comfortable with a higher degree of risk may be interested in investing in ALLEGIANT TRAVEL. Given its higher growth potential but lower stability, investors should ensure that they have a good understanding of the risks involved before deciding to invest. 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 impressive results for its second quarter of FY2023, with total revenue increasing 8.6% year-over-year to USD 683.8 million and net income of USD 88.5 million, a substantial increase from the previous year. Investors responded positively to the news, pushing up the stock price on the back of strong earnings. An analysis of ALLEGIANT TRAVEL’s financials reveals strong fundamentals, with healthy profit margins, a low debt-to-equity ratio, and robust cash flow. With growth potential and good performance metrics, ALLEGIANT TRAVEL is an attractive investment opportunity.
Related Posts
Recent Posts
