Spirit Airlines, Inc.
) is slated to report second-quarter 2014 financial numbers on July
29, 2014, before the opening bell.
In the previous quarter, Spirit Airlines reported a 60.06%
positive earnings surprise. Moreover, the company has comfortably
surpassed the Zacks Consensus Estimate in three of the last four
quarters, with an average earnings surprise of 9.92%. Let's see how
things are shaping up for this announcement.
Factors to be Considered this Quarter
Spirit Airlines reported healthy revenue passenger miles (RPMs)
numbers in the months of April, May and June. The company generated
RPMs of 1.2 billion in June, up 16.9% from the same month in 2013;
1.18 billion in May, up 18.7% from May 2013; and 1.1 billion in
April, up 23.8% from April 2013. Therefore, the company should
report strong top line results in the second quarter.
However, a constant rise in international capacity as against
demand is a concern. Further, high jet fuel prices could weigh on
the profits of the company in the upcoming quarter.
Our proven model does not conclusively show that Spirit Airlines
is likely to beat the Zacks Consensus Estimate this quarter. This
is because a stock needs to have both a positive
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to
happen. Unfortunately, that is not the case here as elaborated
Zero Zacks ESP:
This is because both the Most Accurate estimate and the Zacks
Consensus Estimate are poised at 88 cents. This leads to an ESP of
0.00% for Spirit Airlines.
Spirit Airlines has a Zacks Rank #2 which when combined with a
0.00% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing a negative estimate revision momentum.
Other Stocks to Consider
Here are some other companies to consider as our model shows
they have the right combination of elements to post an earnings
beat this quarter.
Genesee & Wyoming Inc. (
) has an earnings ESP of +0.89% and carries a Zacks Rank #2.
Expeditors International of Washington Inc. (
) has an earnings ESP of +4.26% and carries a Zacks Rank #2.
GOL Linhas A (
) has an earnings ESP of +175.00% and carries a Zacks Rank #3.
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EXPEDITORS INTL (EXPD): Free Stock Analysis
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SPIRIT AIRLINES (SAVE): Free Stock Analysis
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