uploads///SAVE

What Are Analysts Estimating for Spirit Airlines in 2016?

By

Aug. 18 2020, Updated 6:31 a.m. ET

Analyst estimates

Following Spirit Airlines’ (SAVE) 4Q15 earnings release, analysts’ consensus 1Q16 estimates remain unchanged. Sales are expected to grow by 7% at $528 million.

However, given the expected margin decline, analysts are estimating EBITDA (earnings before interest, tax, depreciation, and amortization) is expected to decline by ~1% to $124 million. Both EBITDA and sales growth are expected to increase through the rest of 2016.

Article continues below advertisement

For 2016, analysts estimate that Spirit Airlines’ sales will grow by 9% to $2,333 million while EBITDA is expected to grow by 7% to $612 million. Sales growth is expected to increase to 18% for 2017. Growth in profitability is also expected to increase. For 2017, analysts are expecting the airline’s EBITDA to grow by 12%.

Analyst recommendations

Of the 15 analysts rating Spirit Airlines’ (SAVE) stock, 80% (12 analysts) have a “buy” rating, 20% (three analysts) have a “hold” rating, and none of the analysts have a “sell” rating.

Target price

The stock’s consensus 12-month target price is $54.97, which indicates a 28.6% return potential. Analysts’ 12-month target prices for SAVE’s peers are as follows:

  • American Airlines (AAL) $52.42 with 44.9% return potential
  • Delta Air Lines (DAL) $65.71 with 56.5% return potential
  • JetBlue Airways (JBLU) $28.46 with 41.7% return potential
  • United Continental (UAL) $75.61 with 62.7% return potential
  • Southwest Airlines (LUV) $54.14 with 53.6% return potential
  • Alaska Air Group (ALK) $90.75 with 38.3% return potential

Investors can gain exposure to airline stocks by investing in the iShares Transportation Average ETF (IYT), which invests ~24% of its portfolio in airlines. Next, we will wrap up this series by looking at SAVE’s valuation compared to its peers.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.