Spirit said it earned $19.5 million, or 27 cents a share, in the fourth quarter; analysts had estimated 24 cents. Revenue rose 20% to $328 million; analysts estimated $330 million. Capacity grew by 28%.
Spirit shares were trading early Tuesday at $20.35, up 97 cents, or about 5%, easily leading airline shares.
"The company currently has no on-balance sheet debt and produced a pretax return on invested capital of 26.5% for the year ended Dec. 31, 2012, the highest among publicly-traded U.S. airlines," wrote Deutsche Bank analyst Michael Linenberg, in a note following the release."Hurricane Sandy had a massive negative impact on SAVE's results," wrote Avondale Partners analyst Fred Lawrence, in a note. "On an adjusted basis, adding related revenue and pretax income back to numbers, SAVE would have reported fourth quarter EPS of roughly 47 cent -- easily exceeding the pre-Sandy consensus estimate of 38 cents." Results included an estimated $25 million in lost revenue due to Hurricane Sandy. The fourth-quarter operating margin was 9.7%; Spirit said it would have been $15.8 million were it not for Sandy. Revenue per available seat mile declined 6.6%, reflecting the negative impact of Sandy and a 5.3% increase in average stage length. Non-ticket revenue per passenger flight segment grew 9.4% to $52.73, while average ticket revenue per passenger flight segment fell 8.6% to $71.30. During the quarter, cost per available seat mile excluding fuel and special items declined by 2.5%. For the full year, excluding special items, Spirit earned $104 million and posted a return on invested capital of 26.5%. The company ended the year with $417 million in cash. Follow @tedreednc -- Written by Ted Reed in Charlotte. >To contact the writer of this article, click here: Ted Reed
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV