SAVE - Spirit Down on Wider-Than-Expected Q1 Loss & Bleak View | Benzinga
Shares of Spirit Airlines (NYSE: SAVE) declined 9.7% on Monday, closing the trading session at $3.35 per share. The unimpressive price performance followed the company's first-quarter 2024 earnings, wherein the Miramar, FL-based carrier reported a wider-than-expected loss. Adding to the woes, revenues were also lower than anticipated. More than the quarterly earnings report, it was the company's bleak forecast that disappointed investors. Management stated that it would average about 25 grounded aircraft through the rest of 2024. The reduced fleet-size is likely to hamper growth, in turn hurting SAVE's ability to compete effectively with its rivals as they expand in key markets.
Let's delve deeper.
Spirit's quarterly loss (excluding 16 cents from non-recurring items) of $1.46 per share was wider than the Zacks Consensus Estimate of a loss of $1.43. In the year-ago quarter, it had incurred a loss of 82 cents.
Revenues of $1.265 billion missed the Zacks Consensus Estimate of $1.271 billion. The top line declined 6.24% year over year.
Results were hurt by low fleet size due to the grounding of aircraft following engine issues. Per CEO Ted ...