Spirit Airlines Stock Fair Value Calculator – Spirit Airlines Reports FY2023 Q2 Earnings Results as of June 30 2023
August 23, 2023
☀️Earnings Overview
On August 3 2023, SPIRIT AIRLINES ($NYSE:SAVE) released their FY2023 Q2 earnings results, as of June 30 2023. In comparison to the same period last year, total revenue had increased by 4.8%, amounting to USD 1432.5 million. Net income for the quarter was USD -2.4 million, which was a drastic improvement compared to the previous year’s figure of -52.4 million.
Share Price
The stock opened at $16.7, but closed at $15.9, dropping 7.1 percent from the previous closing price of $17.1. This marks a significant decrease in share value for the airline company. Despite the firm’s efforts to reduce costs and improve its balance sheet, the stock has yet to recover significantly from the pandemic’s effects on the airline industry.
In light of the results, Spirit Airlines has implemented various strategies to strengthen its operations and finances, such as raising additional capital, expanding its route network, and introducing cost-saving initiatives. It remains to be seen if these actions will be enough to bolster the stock’s performance and restore investor confidence in the airline company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Spirit Airlines. More…
| Total Revenues | Net Income | Net Margin |
| 5.52k | -413.3 | -0.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Spirit Airlines. More…
| Operations | Investing | Financing |
| -45.08 | -264.41 | 247.11 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Spirit Airlines. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.37k | 7.9k | 13.48 |
Key Ratios Snapshot
Some of the financial key ratios for Spirit Airlines are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.3% | 2.3% | -7.3% |
| FCF Margin | ROE | ROA |
| -6.2% | -17.0% | -2.7% |
Analysis – Spirit Airlines Stock Fair Value Calculator
At GoodWhale, we recently conducted an analysis of SPIRIT AIRLINES‘s wellbeing. After carefully examining the company’s financials and stock performance, we have determined that the fair value of SPIRIT AIRLINES share is around $39.4, calculated using our proprietary Valuation Line. Taking into account the current share price of $15.9, we can conclude that SPIRIT AIRLINES is currently undervalued by 59.7%. We believe this presents a great opportunity for investors looking to gain value from an undervalued asset. More…
Peers
Spirit Airlines Inc competes with Frontier Group Holdings Inc, JetBlue Airways Corp, and Southwest Airlines Co in the airline industry. Each company has a different business model, but all are trying to attract customers with low fares. Spirit Airlines Inc has been successful in this by offering bare-bones fares that are much lower than its competitors.
– Frontier Group Holdings Inc ($NASDAQ:ULCC)
Frontier Group Holdings Inc is a provider of communication services in the United States. The company offers broadband, video, and voice services to residential and business customers. It also provides data and Internet services. The company was founded in 1935 and is headquartered in Stamford, Connecticut.
– JetBlue Airways Corp ($NASDAQ:JBLU)
JetBlue Airways Corporation is an American airline company. It is the 6th-largest airline in the United States. The company was founded in 1998 and is headquartered in New York City. JetBlue Airways operates flights to more than 100 destinations in the United States, Caribbean, and Latin America. The company has a market capitalization of $2.46 billion as of 2022 and a return on equity of -8.81%. JetBlue Airways is a publicly traded company listed on the Nasdaq Stock Exchange.
– Southwest Airlines Co ($NYSE:LUV)
Southwest Airlines Co is a major U.S. airline, headquartered in Dallas, Texas. The company operates a fleet of 737 aircraft and serves destinations across the United States and several international destinations. Southwest is one of the largest airlines in the world, with a market capitalization of over $22 billion as of 2022. The company has a strong financial position, with a return on equity of over 8%. Southwest is a well-known brand and is a preferred choice for many travelers.
Summary
Overall, the second quarter of FY2023 for Spirit Airlines reported mixed results. The total revenue for the quarter reached USD 1432.5 million, registering a 4.8% increase from the same period last year.
However, the net income for the quarter was -2.4 million, showing significant improvement from the previous year’s figure of -52.4 million. Despite the improved financials, investors were not impressed as the stock price dropped on the news. This reflects the cautious sentiment among investors regarding Spirit Airlines due to the ongoing pandemic-related uncertainly. Therefore, investors should do their research and evaluate the short and long-term prospects of the company before committing to an investment.
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