Spirit Airlines(SAVE)- NASDAQ
  • Sat, Sep. 24, 9:14 AM
    • Spirit Airlines (NASDAQ:SAVE) could soar if fare competition in the U.S. market eases back, points out Barron's.
    • A rationalization in the airline industry has the potential to bring the focus of investors back on valuation to the benefit of Spirit.
    • Spirit by the numbers: P/E ratio of 9.9 off of 2017 estimates; EV/EBITDA ratio of 4.4 vs. industry average of 5.3; share price -26%  vs. 52-week high; $61.08 consensus price target on SAVE from Wall Street (+54% upside).
    • The argument from Barron's could be convincing enough to gives Spirit shares a little bounce on Monday.
    | Sat, Sep. 24, 9:14 AM | 4 Comments
  • Fri, Sep. 16, 8:44 AM
    • U.S. air fares fell 3.5% Y/Y and 5.5% M/M in August to stay in a down trend, according to data compiled by the Bureau of Transportation Services.
    • Lower fuel costs and an elevated level of capacity were factors again during the month.
    • Research firm Hopper expects fares to continue to drop until bottoming out at an average of $210 in January 2017.
    • The lower level of fares will impact Q3 revenue per available seat mile, although those expectations are already included in guidance updates.
    • BTS data
    • Related ETF: JETS.
    • Related stocks: ALGT, JBLU, SAVE, VA, LUV, DAL, AAL, UAL, HA, SKYW, ALK.
    | Fri, Sep. 16, 8:44 AM | 21 Comments
  • Fri, Aug. 19, 8:31 AM
    • Stifel Nicolaus analyst Joseph DeNardi says the hiring by United Continental (NYSE:UAL) of Andrew Levy for the CFO position has positive implications for Spirit Airlines (NASDAQ:SAVE) and Allegiant Travel (NASDAQ:ALGT).
    • By UAL hiring Levy who has deep experience with budget carriers, the threat of Levy starting his own airline is reduced for ALGT and SAVE, observes DeNardi.
    • Previously: United Continental makes key hires (Aug. 18)
    | Fri, Aug. 19, 8:31 AM | 4 Comments
  • Tue, Aug. 16, 10:48 AM
    • U.S. air fares plunged 8.5% M/M and 4.6% M/M in July in the sharpest drop in over a year, according to data compiled by the Bureau of Transportation Services.
    • Lower fuel costs and an elevated level of capacity were factors during the month.
    • Research firm Hopper thinks airfares will continue to drop through October on a seasonal effect. Hopper estimates an average fare of $213 per round trip in October, down from a current level of $232.
    • The level of air fares has an obvious impact on the key metric in the airline sector - revenue per available seat mile - although it didn't seem to come up much during this quarter's round of earnings calls.
    • BTS data
    • Related ETF: JETS.
    • Related stocks: ALGT, JBLU, SAVE, VA, LUV, DAL, AAL, UAL, HA, SKYW, ALK.
    | Tue, Aug. 16, 10:48 AM | 11 Comments
  • Fri, Aug. 5, 11:44 AM
    • Airline stocks are higher today after a solid U.S. jobs report and with oil prices swinging lower again.
    • This summer the sector has seen bouncy trading as concerns over unit revenue, sensitivity to terrorist incidents, and new Zika outbreaks have influenced sentiment.
    • The wave of anxiety coincides with a period where profit has been increasing at some carriers to push forward price-earnings ratios to single digits. Investors focused on value now have United at a 6.9 forward PE, Delta at 6.2, American at 6.8, JetBlue at 8.5, Southwest at 9.3, and SkyWest at 9.7 to mull over.
    • Today's rally includes United Continental (UAL +4.2%), SkyWest (SKYW +3.5%), Allegiant Travel (ALGT +3.3%), Southwest Airlines (LUV +2.9%), Delta Air Lines (DAL +2.9%), Hawaiian Holdings (HA +2.2%), JetBlue (JBLU +1.8%), American Airlines Group (AAL +1.6%), Alaska Air Group (ALK +1.7%), and Spirit Airlines (SAVE +1.4%).
    • The U.S. Global Jets ETF (NYSEARCA:JETS) is up 2.11% on the day.
    | Fri, Aug. 5, 11:44 AM | 19 Comments
  • Thu, Aug. 4, 10:07 AM
    • Spirit Airlines (SAVE +0.8%) is tracking higher after Raymond James upgrades the airline stock to a Strong Buy rating on a valuation call.
    • Shares of Spirit have fallen back 13% over the last four weeks to below $40.
    • Last month, SA contributor Alpha Investors presented the bull case on SAVE.
    | Thu, Aug. 4, 10:07 AM | 11 Comments
  • Tue, Aug. 2, 4:13 PM
    • Airline stocks had a rough day after Delta Air Lines (NYSE:DAL) showed a stinging 7% drop in passenger revenue per available seat mile in July.
    • Investors have keyed on the PRASM marks from airlines more than any other metric this year to the chagrin of some value-focused investors and analysts.
    • "The Delta number this morning was weaker than expected but not weak enough that the stock is down 7%," observes Stifel Nicolaus analyst Joseph DeNardi.
    • Increased concern on diminished travel to Florida amid the local Zika breakout in Miami is also weighing on the sector.
    • Notable decliners included JetBlue (NASDAQ:JBLU) -6.5%, United Continental (NYSE:UAL) -6.3%, American Airlines Group (NASDAQ:AAL) -5.9%, and Spirit Airlines (NASDAQ:SAVE) -4.3%. The U.S. Global Jets ETF (NYSEARCA:JETS) fell 4.1%.
    • Previously: Delta Air Lines sharply lower after updating on July results (Aug. 2)
    | Tue, Aug. 2, 4:13 PM | 23 Comments
  • Fri, Jul. 29, 6:04 AM
    • Spirit Airlines (NASDAQ:SAVE): Q2 EPS of $1.11 beats by $0.03.
    • Revenue of $584.13M (+5.5% Y/Y) misses by $2.95M.
    • Press Release
    | Fri, Jul. 29, 6:04 AM | 5 Comments
  • Thu, Jul. 28, 5:30 PM
  • Thu, Jul. 21, 10:39 AM
    • Airline stocks (JETS -2.8%) are broadly lower following Southwest Airlines' (LUV -8.8%) Q2 earnings miss and downbeat guidance for a 3%-4% decline in Q3 RASM from a 0.6% gain in Q2.
    • Shares also are hurt by warnings from Deutsche Lufthansa (OTCQX:DLAKF, OTCQX:DLAKY) and EasyJet (OTC:EJTTF, OTCQX:ESYJY) that recent terror attacks and political turmoil in Europe were weighing on their businesses.
    • Lufthansa says advance bookings, particularly on longer routes to Europe, "have declined significantly, in particular due to repeated terrorist attacks in Europe and to greater political and economic uncertainty."
    • Easyjet also warns on terrorism, and says the U.K.’s Brexit vote would hurt per-seat revenue, and that foreign exchange and fuel cost effects would add ~£25M ($33M) to full-year expenses.
    • DAL -3.1%, UAL -2.9%, AAL -2%, RYAAY -2.9%, ALK +0.8%, JBLU -2.3%, SAVE -2.6%, HA -1.3%, SKYW -0.2%.
    | Thu, Jul. 21, 10:39 AM | 19 Comments
  • Tue, Jul. 19, 9:04 AM
    • Spirit Airlines (NASDAQ:SAVE) updates guidance in an update to investors.
    • Revenue per available seat mile was down 14.3% Y/Y during the quarter to fall on the low end of the company's original guidance. Fare pressure played in to the RASM weakness.
    • Capacity was up 23.1% in Q2.
    • The company says it recorded adjusted operating margin of approximately 22%. Adjusted cost per available seat mile decreased 8% vs. initial guidance for a drop of 5%.
    • Spirit Airlines Investor Update (.pdf)
    • SAVE -5.46% premarket to $45.20.
    | Tue, Jul. 19, 9:04 AM | 8 Comments
  • Mon, Jul. 18, 5:35 PM
    • Top gainers, as of 5.25 p.m.: VMW +9.9%. IBM +2.4%. XNY +2.4%. EMC +1.9%. BRO +1.8%.
    • Top losers, as of 5.25p.m.: NFLX -14.1%. RWLK -6.3%. SAVE -5.9%. SPU -3.6%. MT -2.4%.
    | Mon, Jul. 18, 5:35 PM | 7 Comments
  • Tue, Jul. 12, 9:58 AM
    • Airline stocks are making strong gains on a flurry of positive news.
    • The investment in LATAM Airlines (LFL +23.9%) by Qatar Airways is having a ripple effect across other global carriers. Copa Holdings (CPA +7.9%), Avianca Holdings (AVH +8.1%), and Go Linhas (GOL +7.8%) are all solidly higher.
    • In the U.S., a stronger-than-anticipated report from United Continental (UAL +7.7%) on its key Q2 revenue metric is the highlight along with a sweeping upgrade from Deutsche Bank.
    • The investment firm raises United, American Airlines Group (AAL +8.6%), and Delta Air Lines (DAL +4.7%) to Buy from Hold.
    • "We are of the view that all known negatives (Brexit, tepid global economic growth, over-supplied markets, etc.) are more than fully discounted in the share prices which are, on average, trading at 6.4x our 2016 EPS estimates and 6.8x our 2017 EPS estimates," reads the note from DB.
    • Alaska Air Group (ALK +4.3%), JetBlue Airways (JBLU +4%), Southwest Airlines (LUV +3.4%), and Spirit Airlines (SAVE +3.3%) are all higher as well.
    • The U.S. Global Jets ETF (NYSEARCA:JETS) is up 3.86% on the day.
    | Tue, Jul. 12, 9:58 AM | 5 Comments
  • Thu, Jul. 7, 11:14 AM
    • The Department of Transportation issues its recommendations on airline service from the U.S. to Cuba.
    • The DOT awards Alaska Airlines (NYSE:ALK), American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL), privately-held Frontier Airlines, JetBlue (NASDAQ:JBLU), Southwest Airlines (NYSE:LUV), Spirit Airlines (NASDAQ:SAVE), and United Airlines (NYSE:UAL) the right to fly into Havana from Atlanta, Charlotte, Fort Lauderdale, Houston, Los Angeles, Miami, Newark, New York City, Orlando, and Tampa.
    • Flights are expected to start this fall, with up to 20 daily frequencies allowed by the current agreement with Cuba.
    • DOT press release
    | Thu, Jul. 7, 11:14 AM | 35 Comments
  • Wed, Jul. 6, 1:02 PM
    • Airline stocks continue to lose altitude amid concerns on capacity growth and labor expenses. The Bloomberg U.S. Airlines Index has retreated 27% YTD, while the slightly-diversified U.S. Global Jets ETF (NYSEARCA:JETS) is down about 17%.
    • Analysts such as Credit Suisse's Julie Yates continue to point the finger directly at management.
    • "Capacity growth continues to outpace GDP in all regions and the industry’s willingness to trim growth with oil still in a historically inexpensive range of $50 a barrel is low," notes Yates. Delta's disclosure of a 5% drop in PRASM in Q2 backs up her contention.
    • Sector snapshot: A CS downgrade on both United Continental (UAL -3.2%) and American Airlines Group (AAL -4.1%) today sent both stocks spiraling downward, with UAL hitting a 52-week low. Also suffering from the doldroms, Delta Air Lines (DAL -1.7%) is down 29% YTD and JetBlue (JBLU -1.2%) is off 27%. Spirit Airlines (SAVE -2%) and Southwest Airlines (LUV -1.1%) don't have to worry about European demand, but have seen an impact from pricing competition in key markets this year. Virgin America (VA -0.2%) shareholders are the ones that have navigated the choppy market the best this year due to the buyout from Alaska Air Group (ALK -1.3%).
    | Wed, Jul. 6, 1:02 PM | 42 Comments
  • Tue, Jul. 5, 10:35 AM
    • Airline stocks are notable laggards on the day after Delta Air Lines (DAL -4.4%) reduced its outlook for Q2 operating margin to 17% (from 21% to 23% prior) and reported on a 5% drop in PRASM during June.
    • United Continental (UAL -3.5%) and American Airlines Group (AAL -2.5%) are seen as suffering from some of the same F/X and Brexit pressures abroad, while Spirit Airlines (SAVE -4%) and Allegiant Travel (ALGT -2.2%) continue their jittery trading patterns.
    • Southwest Airlines (LUV -1.4%) is also lower, despite a positive weekend profile in Barron's highlighting the stronger balance sheet the airline company has compared to peers and the lack of European headaches.
    • Previously: Delta Air Lines lower after issuing June traffic numbers (July 5)
    • Related ETF: JETS.
    | Tue, Jul. 5, 10:35 AM | 5 Comments