Ultra low-cost airline Frontier Group Holdings (NASDAQ: ULCC) will be reporting earnings this Wednesday morning. Here’s what to expect.
Frontier beat analysts’ revenue expectations last quarter, reporting revenues of $1.28 billion, up 37.7% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Frontier a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Frontier’s revenue to grow 45.9% year on year, a reversal from the 5.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Frontier has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Frontier’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Wyndham delivered year-on-year revenue growth of 7.3%, meeting analysts’ expectations, and Carnival reported revenues up 3.5%, topping estimates by 1.1%. Wyndham traded down 4.2% following the results while Carnival was up 10.8%.
Read our full analysis of Wyndham’s results here and Carnival’s results here.
Investors in the consumer discretionary - travel and vacation providers segment have had steady hands going into earnings, with share prices flat over the last month. Frontier is down 19.1% during the same time and is heading into earnings with an average analyst price target of $6.33 (compared to the current share price of $4.92).
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