Benzinga | Feb 2, 2021 10:07AM EST

Allegiant Travel's Earnings Outlook

Allegiant Travel (NASDAQ:ALGT) releases its next round of earnings this Wednesday, February 03. Here is Benzinga's essential guide to Allegiant Travel's Q4 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street expects an EPS loss of $2.31 and sales around $245.66 million. In the same quarter last year, Allegiant Travel posted EPS of $3.72 on sales of $461.07 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street consensus estimate for earnings would represent a 162.1% decrease for the company. Sales would be down 46.72% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -4.88 -5.49 0.90 3.88EPS Actual -4.28 -5.96 2.05 3.72Revenue Estimate 201.84 M 104.39 M 429.40 M 458.67 MRevenue Actual 200.98 M 133.35 M 409.18 M 461.07 M

Stock Performance

Shares of Allegiant Travel were trading at $183.92 as of February 01. Over the last 52-week period, shares are up 9.07%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Allegiant Travel is scheduled to hold the call at 16:30:00 ET and can be accessed here.