Spirit Airlines Incorporated Earnings: Here’s Why the Stock is Rising Now

Spirit Airlines Incorporated (NASDAQ:SAVE) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.49%.

Spirit Airlines Incorporated Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 28.57% to $0.63 in the quarter versus EPS of $0.49 in the year-earlier quarter.

Revenue: Rose 17.61% to $407.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Spirit Airlines Incorporated reported adjusted EPS income of $0.63 per share. By that measure, the company missed the mean analyst estimate of $0.63. It missed the average revenue estimate of $407.92 million.

Quoting Management: “Our team did a great job delivering strong second quarter results and liberated over three million passengers from high fares. Spirit’s average base fare per passenger segment in the second quarter 2013 was $77.51, a decrease of 4.4 percent year over year. Our strategy to allow customers to choose what they value for their travel experience results in our customers paying a total price that is almost always less than what they would pay on other airlines,” said Ben Baldanza, Spirit’s Chief Executive Officer. “Spirit’s low cost, low fare, and high choice strategy is appealing to a growing base of smart value-conscious consumers and we look forward to bringing low fares to more places as we grow.”

Key Stats (on next page)…

Revenue increased 9.95% from $370.44 million in the previous quarter. EPS increased 40% from $0.45 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.49 to a profit $0.56. For the current year, the average estimate has moved up from a profit of $1.99 to a profit of $2.15 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , ,  

More from The Cheat Sheet