Entry level $36.80 = Price Target $38.50 = Stop loss $46.00
Seeking alpha earnings highlights
Spirit Airlines (NYSE:SAVE) +4.6% after-hours following better than expected Q3 earnings and a 10% Y/Y rise in revenues to $992M.
Q3 total operating revenue per available seat mile slipped 1.7% Y/Y, driven by lower load factor, softer passenger yields and the negative impact from Hurricane Dorian.
Spirit also says it reached a memorandum of understanding with Airbus (OTCPK:EADSY) to purchase 100 new Airbus A320neo family jets to be delivered through 2027, with options to purchase up to 50 additional aircraft.
The deal marks the first tentative win for Airbus in the U.S. since the Trump administration imposed 10% tariffs on some of the planes it offers to U.S. carriers last week.
Depending on the number of each variant of the A320 single-aisle family chosen, the deal could be worth as much as $12B at list prices.
Average analysts price target $46
P/E ratio 7.2 undervalued
Company profile
Spirit Airlines, Inc. is an airline that offers travel to price-conscious customers. The company's customers start with an unbundled unbundled base fares that remove components included in the price of an airline ticket. The company was founded by Ned Homfeld in 1964 and is headquartered in Miramar, FL.
Seeking alpha earnings highlights
Spirit Airlines (NYSE:SAVE) +4.6% after-hours following better than expected Q3 earnings and a 10% Y/Y rise in revenues to $992M.
Q3 total operating revenue per available seat mile slipped 1.7% Y/Y, driven by lower load factor, softer passenger yields and the negative impact from Hurricane Dorian.
Spirit also says it reached a memorandum of understanding with Airbus (OTCPK:EADSY) to purchase 100 new Airbus A320neo family jets to be delivered through 2027, with options to purchase up to 50 additional aircraft.
The deal marks the first tentative win for Airbus in the U.S. since the Trump administration imposed 10% tariffs on some of the planes it offers to U.S. carriers last week.
Depending on the number of each variant of the A320 single-aisle family chosen, the deal could be worth as much as $12B at list prices.
Average analysts price target $46
P/E ratio 7.2 undervalued
Company profile
Spirit Airlines, Inc. is an airline that offers travel to price-conscious customers. The company's customers start with an unbundled unbundled base fares that remove components included in the price of an airline ticket. The company was founded by Ned Homfeld in 1964 and is headquartered in Miramar, FL.
Entry level $38.50 = target price $46