Ultra low-cost airline Frontier Group Holdings (NASDAQ: ULCC) will be reporting earnings this Tuesday morning. Here’s what to look for.
Frontier beat analysts’ revenue expectations last quarter, reporting revenues of $997 million, flat year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Is Frontier a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Frontier’s revenue to grow 14.9% year on year, improving from the 5.4% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. Frontier has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Frontier’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Hilton Grand Vacations delivered year-on-year revenue growth of 11.9%, beating analysts’ expectations by 2%, and American Airlines reported revenues up 10.8%, topping estimates by 0.6%. Hilton Grand Vacations traded up 5.9% following the results while American Airlines was also up 5.2%.
Read our full analysis of Hilton Grand Vacations’s results here and American Airlines’s results here.
There has been positive sentiment among investors in the consumer discretionary - travel and vacation providers segment, with share prices up 7% on average over the last month. Frontier is up 12.5% during the same time and is heading into earnings with an average analyst price target of $4.43 (compared to the current share price of $4.05).
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