Hudson Comments on Allegiant Travel Company's Q4 10 (ALGT)

Hudson is out with its report on Allegiant Travel Company ALGT, commenting on Q4 10 results. In a note to clients, Hudson writes, "After the close last night, ALGT reported 4Q revenues of $162M, operating income of $20.9M (an operating margin of 12.9%), and net income of $12.4M, or $0.64/share, slightly worse than a consensus $0.70/share, though ahead of our $0.60 EPS (on slightly better revenues). Operating expense per passenger X-fuel of $58.36 compared to initial 4Q guidance of $56-$58. Vs our model, mgmt's near-term revenue & cost outlook disappoint somewhat. Near-term, we expect shares come under pressure, but believe there is still sufficient longer-term value in the story and the stock at current levels; maintaining our Buy rating." Hudson maintains a $58 price target on ALGT. At the time of posting, shares of ALGT were trading at $42.65, down 8.35% from Monday's close.