FRONTIER GROUP Reports Earnings Results for FY2023 Q2
August 4, 2023
🌥️Earnings Overview
On August 1, 2023, FRONTIER GROUP ($NASDAQ:ULCC) announced its earnings results for Q2 of FY2023, which concluded on June 30, 2023. Total revenue grew year-over-year by 6.4%, reaching USD 967.0 million, while net income surged to USD 71.0 million, up from USD 13.0 million in the previous year.
Price History
The company saw a 3.7% decrease in their stock price, from last closing price of $9.3 to its current opening price of $9.2, with a closing price of $9.0. Analysts noted that the decrease reflected investor uncertainty over a recent announcement by the company that it would be shifting its focus to a new market. Despite the decrease in stock prices, FRONTIER GROUP is reporting positive financial numbers with a strong gross profit margin, as well as increased revenue and earnings.
The company has also revealed plans to invest heavily in research and development, which could lead to further growth in the future. Despite this decrease in stock prices, FRONTIER GROUP remains confident that their new strategy will bring in positive returns in the long run. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Frontier Group. More…
| Total Revenues | Net Income | Net Margin |
| 3.63k | 127 | 3.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Frontier Group. More…
| Operations | Investing | Financing |
| -45 | -130 | 189 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Frontier Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.71k | 4.14k | 2.59 |
Key Ratios Snapshot
Some of the financial key ratios for Frontier Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.9% | -0.8% | 5.0% |
| FCF Margin | ROE | ROA |
| -4.8% | 21.5% | 2.4% |
Analysis
At GoodWhale, we recently analyzed the financials of FRONTIER GROUP. According to our Risk Rating, FRONTIER GROUP is considered to be a medium risk investment in terms of financial and business aspects. We have also detected two risk warnings from the balance sheet and cashflow statement. If you would like to learn more about these warnings, please register with us and check it out. We strive to provide our users with the most up-to-date information to help them make sound financial decisions. More…
Peers
Frontier Group Holdings Inc is an airline holding company that owns and operates Frontier Airlines. The company was founded in 1994 and is headquartered in Denver, Colorado. Frontier Group Holdings Inc’s competitors include Spirit Airlines Inc, JetBlue Airways Corp, and Southwest Airlines Co.
– Spirit Airlines Inc ($NYSE:SAVE)
In 2022, Spirit Airlines had a market cap of 2.38 billion and a return on equity of -10.47%. The company is an American ultra-low-cost carrier, headquartered in Miramar, Florida. Spirit operates scheduled flights throughout the United States and in the Caribbean, Mexico, Latin America, and South America.
– JetBlue Airways Corp ($NASDAQ:JBLU)
As of 2022, JetBlue Airways Corp has a market cap of 2.42B and a Return on Equity of -8.81%. JetBlue Airways Corp is an airline company that operates in the United States. The company was founded in 1999 and is headquartered in New York, New York. JetBlue Airways Corp offers scheduled air service in the United States and the Caribbean. The company also provides cargo transportation services.
– Southwest Airlines Co ($NYSE:LUV)
Southwest Airlines Co is a publicly traded company with a market capitalization of $20.39 billion as of 2022. The company has a return on equity of 10.01%. Southwest Airlines Co is a low-cost carrier that operates in the United States. The company was founded in 1967 and is headquartered in Dallas, Texas.
Summary
Investors responded negatively to the FRONTIER GROUP‘s second quarter earnings report for FY2023, with the stock price dropping on August 1 after the results were announced. Total revenue for the quarter increased 6.4% to USD 967.0 million compared to the same period a year earlier, while net income rose significantly from USD 13.0 million to USD 71.0 million. Despite the strong financial results, investors may have been expecting more from FRONTIER GROUP in terms of top-line growth and profitability. As such, investors may want to remain cautious when considering a position in FRONTIER GROUP’s stock.
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