What to Expect from Frontier Group Holdings's Earnings

Frontier Group Holdings ULCC is preparing to release its quarterly earnings on Tuesday, 2024-10-29. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Frontier Group Holdings to report an earnings per share (EPS) of $-0.11.

Anticipation surrounds Frontier Group Holdings's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings History Snapshot

Last quarter the company missed EPS by $0.01, which was followed by a 2.2% drop in the share price the next day.

Here's a look at Frontier Group Holdings's past performance and the resulting price change:

Performance of Frontier Group Holdings Shares

Shares of Frontier Group Holdings were trading at $7.03 as of October 25. Over the last 52-week period, shares are up 112.98%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Frontier Group Holdings

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Frontier Group Holdings.

Analysts have provided Frontier Group Holdings with 9 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $4.87, suggesting a potential 30.73% downside.

Comparing Ratings with Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Allegiant Travel, JetBlue Airways and Sun Country Airlines, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Neutral trajectory for Allegiant Travel, with an average 1-year price target of $47.0, indicating a potential 568.56% upside.
• The prevailing sentiment among analysts is an Neutral trajectory for JetBlue Airways, with an average 1-year price target of $6.09, implying a potential 13.37% downside.
• As per analysts' assessments, Sun Country Airlines is favoring an Neutral trajectory, with an average 1-year price target of $12.5, suggesting a potential 77.81% upside.

Peer Metrics Summary

Within the peer analysis summary, vital metrics for Allegiant Travel, JetBlue Airways and Sun Country Airlines are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Frontier Group Holdings ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, it is also in the middle.

Get to Know Frontier Group Holdings Better

Frontier Group Holdings Inc is an ultra-low-cost carrier whose business is focused on Low Fares Done Right. The company owns a fleet of 120 Airbus single-aisle aircraft, consisting of 13 A320ceos, 82 A320neos, 21 A321ceos and 4 A321neos. The use of these aircraft, their seating configuration, weight-saving tactics, and baggage process have all contributed to the ability to continue to be the fuel-efficient of all the U.S. The Company is managed as a single business unit that provides air transportation for passengers.

Key Indicators: Frontier Group Holdings's Financial Health

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, Frontier Group Holdings showcased positive performance, achieving a revenue growth rate of 0.62% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Frontier Group Holdings's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 3.19%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Frontier Group Holdings's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 6.18% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Frontier Group Holdings's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.57%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 7.87, caution is advised due to increased financial risk.

To track all earnings releases for Frontier Group Holdings visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.