Spirit Airlines Hits Estimates in Solid Quarter
Aug 2nd 2013 9:00AM
Updated Aug 2nd 2013 9:06AM
Spirit Airlines (NAS: SAVE) reported earnings on July 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Spirit Airlines met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew significantly.
Gross margins dropped, operating margins dropped, net margins increased.
Spirit Airlines notched revenue of $407.3 million. The seven analysts polled by S&P Capital IQ looked for a top line of $409.2 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $346.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.63. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.63 per share. Non-GAAP EPS of $0.63 for Q2 were 29% higher than the prior-year quarter's $0.49 per share. GAAP EPS of $0.58 for Q2 were 21% higher than the prior-year quarter's $0.48 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 30.4%, 70 basis points worse than the prior-year quarter. Operating margin was 16.4%, 40 basis points worse than the prior-year quarter. Net margin was 10.3%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $418.7 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $1.62 billion. The average EPS estimate is $2.16.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 115 members out of 137 rating the stock outperform, and 22 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Spirit Airlines a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spirit Airlines is buy, with an average price target of $35.56.
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The article Spirit Airlines Hits Estimates in Solid Quarter originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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