This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Spirit Airlines Beats Estimates as Earnings Rise 110%

Stocks in this article: SAVE

MIRAMAR, FLA. (TheStreet) -- Fast-growing Spirit (SAVE) beat fourth-quarter earnings estimates as net income grew 110% and unit costs fell.

Excluding items, the carrier earned $41 million, or 56 cents a share, in the quarter. Analysts surveyed by Thomson Reuters had estimated 50 cents. Revenue rose 28% to $420 million. Analysts had estimated $421 million.

In the fourth quarter a year earlier, Spirit earned $19.5 million, or 27 cents a share. Including items, net income was $43.2 million or 59 cents a share. 

The carrier said its revenue increase was "driven by continued strong demand and our growth in capacity (and) to the negative revenue impact in the fourth quarter 2012 related to Hurricane Sandy." Spirit launched service to 25 new markets in 2013.

In premarket trading on Wednesday, Spirit shares were up $1.19 to $48.85. Cowen & Co. analyst Helane Becker wrote Wednesday morning that she expects Spirit "will outperform its peers today due to better-than-expected 4Q13 earnings results."

During the quarter, Spirit's revenue per available seat mile rose 3% to 11.43 cents, reflecting higher passenger yields and load factors. Average revenue per flight segment grew 7.1% to $132.86, primarily driven by an increase in ticket revenue per flight segment. Adjusted pretax margin was 15.4%, an improvement of 5.7 points from the same period a year earlier.

On the cost side, cost per available seat mile excluding special items and fuel fell 2.5% to 5.78 cents, reflecting better operational performance partially offset by higher depreciation and amortization expenses related to increased heavy maintenance events.

For the full year 2013, total operating revenue increased 25.5% to $1.7 billion. Total RASM increased 2.8% to 11.94 cents. Return on invested capital was 31.8%. "For the full year 2013, we delivered record profitability and return as demand for our low-cost, ultra-low fare model remained very high," said CEO Ben Baldanza, in a prepared statement.

"These strong financial results reflect our vigilance on maintaining our cost discipline and low fare strategy while executing on our growth plan and delivering high returns for our shareholders," Baldanza said.

Written by Ted Reed in Charlotte, N.C.

To contact this writer, click here.

Follow @tedreednc

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs