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Sun Country Airlines Holdings Inc. (SNCY) stock has reached a new 52-week high, climbing to $16.47, marking a significant milestone for the company. With an impressive 32% gain over the past six months and a market capitalization of $857 million, the airline has demonstrated remarkable momentum. According to InvestingPro analysis, the company maintains a "GOOD" financial health score and appears undervalued based on Fair Value estimates, while analysts set price targets as high as $24. Three analysts have recently revised their earnings expectations upward, suggesting growing optimism about the company's prospects. Want deeper insights? InvestingPro subscribers have access to over 8 additional ProTips and a comprehensive research report for SNCY, helping investors make more informed decisions.
In other recent news, Sun Country Airlines has disclosed a mixed bag of results for the third quarter of 2024. The airline reported total revenue for Q3 2024 at $249.5 million, mirroring the previous year's figures. Despite challenges such as industry overcapacity and external disruptions, Sun Country remains optimistic about its unit revenue trends and margin expansion.
Revenue from the passenger segment saw a decrease of 3%, and scheduled service revenue dropped by 5.9%. However, the cargo segment revenue hit a record $29.2 million, up 11.9%, with further growth expected. The company also plans to add five leased Oman aircraft by the end of 2024.
Goldman Sachs has resumed coverage on Sun Country Airlines, assigning a Neutral rating to the carrier's shares. The firm highlighted Sun Country's robust margins, attributed to its distinctive approach of seasonal capacity management, and the stability provided by long-term contracts in its cargo and charter operations. Goldman Sachs also anticipates that Sun Country's rising profitability will lead to an uptick in free cash flow over the medium term.
Sun Country projects Q4 revenue between $250 million and $260 million, with an operating margin of 7% to 9%. While share buybacks are not in the immediate pipeline, the possibility will be reviewed in 2025. These recent developments are part of the airline's strategic plans and activities.
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