Non-GAAP earnings 2016 second quarter were $1.11 per diluted share, higher than analysts' estimates of $1.08 per share. The company generated revenue of $584.1 million, climbing 5.5% from the past year. However, analysts surveyed by Thomson Reuters were expecting revenue of $587.1 million for the period.
Total operating revenue per available seat mile decreased by 14.3% year-over-year to 9.1 cents.
Spirit has experienced "modest pressure" over the past quarter on take rates for certain items which the company believes is correlated to low fare levels in the airline industry.
CEO Bob Fornaro said the company was negatively impacted by continued pressure on yields. "Looking ahead, we see strong volumes for the peak summer leisure travel period but anticipate yield pressures will persist," he added.
Spirit, a low-cost airline, is based in Miramar, FL.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B-.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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