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LAS VEGAS - Allegiant Travel Company (NASDAQ:ALGT) reported better-than-expected fourth quarter results, but its stock fell 4% in after-hours trading Tuesday as the airline’s first quarter guidance came in below analyst estimates.
The Las Vegas-based ultra-low-cost carrier posted adjusted earnings per share of $2.10 for Q4, significantly beating the analyst consensus of $1.19. Revenue rose 2.7% YoY to $627.7 million, also topping expectations of $622.34 million.
However, Allegiant’s outlook for the current quarter fell short of Wall Street projections. The company forecast Q1 2025 earnings per share of $1.50 to $2.50, below the $2.16 consensus estimate.
"We finished the year strong with a fourth quarter adjusted airline-only earnings per share of $3.00," said Gregory Anderson, President and CEO of Allegiant Travel Company. He noted the company made progress on key initiatives like peak flying restoration, product enhancements, and fleet integration.
For the full year 2024, Allegiant reported adjusted airline-only earnings per share of $5.84, down from $8.82 in 2023. The company expects 2025 airline-only EPS to rebound to around $9.00, representing over 50% growth compared to 2024.
Allegiant plans to increase capacity by about 17% in 2025, which it says should be accretive to earnings despite pressuring unit revenues. The company aims to drive improved performance through higher aircraft utilization and fleet upgrades.
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