AP
Allegiant shares soar as 1Q results beat estimates
Tuesday April 29, 11:43 am ET
Allegiant Travel posts 1st-quarter profit ahead of Wall Street predictions, shares climb
LAS VEGAS (AP) -- Shares of Allegiant Travel Co., which operates an airline marketed to leisure travelers in small cities, soared Tuesday after it posted a flat first-quarter profit hurt by a jump in fuel prices, but beat Wall Street predictions.
Allegiant shares rose $5.30, or 25 percent, to $26.10 in morning trading, after peaking at $26.12 earlier in the day. Over the past 52 weeks, the company's shares have traded between $19.65 and $38.74, and are off 35 percent since the start of the year.
For the quarter ended March 31, Allegiant earned $9.7 million, or 47 cents per share, compared with $9.7 million, or 48 cents per share, for the same quarter in 2007.
The per-share profit came in ahead of Wall Street's target of 34 cents per share, according to analysts polled by Thomson Financial.
Excluding a non-cash mark-to-market gain on fuel derivatives, the company posted an adjusted profit of 38 cents per share in the 2007 quarter.
The recent quarter's results were based on about 20.7 million outstanding shares, while the prior-year's were based on about 20.3 million.
Total operating revenue rose 58 percent to $133.1 million from $84.3 million in the year-ago period, as scheduled service revenue increased 58 percent to $91.7 million and ancillary revenue more than doubled to $27.1 million.
The cost of aircraft fuel more than doubled to $63.5 million, contributing toward a 70 percent jump in total operating expenses to $118.8 million.
Operating margin fell to 10.8 percent from 17 percent in the first quarter of last year.