Allegiant Travel (NASDAQ:ALGT) Issues Earnings Results

Allegiant Travel (NASDAQ:ALGT) issued its earnings results on Wednesday. The transportation company reported $2.72 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.04 by $0.68, FiscalAI reports. Allegiant Travel had a negative net margin of 11.36% and a positive return on equity of 5.24%. The business’s revenue was up 4.5% compared to the same quarter last year. During the same period in the previous year, the business posted $2.10 EPS. Allegiant Travel updated its FY 2026 guidance to 8.000- EPS and its Q1 2026 guidance to 2.500-3.500 EPS.

Here are the key takeaways from Allegiant Travel’s conference call:

• Allegiant closed 4Q with results beating expectations and a strong margin profile — 4Q adjusted operating margin of 12.9% — and is guiding to >$8 of adjusted EPS for full-year 2026 (≈+60% YoY).
• The Boeing 737 MAX integration is delivering material efficiency gains (management cites roughly a 20% fuel burn advantage vs. A320s) and is expected to be a meaningful margin tailwind as MAX flying ramps.
• Balance sheet strength improved: net leverage fell to 2.3x after $259M of debt repayments, available liquidity of ~$1.1B, and an unencumbered pool of aircraft/engines valued at >$1B.
• 2026 capacity is being managed conservatively — no standalone fleet growth, full-year ASMs expected down ~0.5% (1Q ASMs down ~5.7%) and three MAX deliveries delayed, which may limit near-term revenue upside.
• Allegiant plans to acquire Sun Country in H2 2026 and highlights cultural/fleet fit and synergy potential, but the transaction still requires regulatory and shareholder approvals and carries integration risk.

Allegiant Travel Price Performance

ALGT stock opened at $99.86 on Thursday. Allegiant Travel has a 52-week low of $39.80 and a 52-week high of $100.46. The firm has a market capitalization of $1.83 billion, a price-to-earnings ratio of -6.13, a PEG ratio of 0.25 and a beta of 1.64. The firm has a 50 day moving average price of $86.50 and a 200-day moving average price of $69.94. The company has a debt-to-equity ratio of 1.76, a quick ratio of 0.95 and a current ratio of 0.98.

Analyst Ratings Changes

A number of research analysts have recently commented on the company. UBS Group increased their price target on Allegiant Travel from $87.00 to $90.00 and gave the company a “neutral” rating in a research note on Tuesday, January 6th. Citigroup increased their price target on Allegiant Travel from $88.00 to $109.00 and gave the stock a “neutral” rating in a report on Wednesday, January 7th. Wolfe Research upgraded Allegiant Travel from a “peer perform” rating to an “outperform” rating and set a $108.00 target price for the company in a report on Tuesday, January 20th. Susquehanna raised their price target on shares of Allegiant Travel from $70.00 to $100.00 and gave the stock a “neutral” rating in a report on Friday, January 9th. Finally, Deutsche Bank Aktiengesellschaft upgraded Allegiant Travel from a “hold” rating to a “buy” rating and set a $105.00 target price on the stock in a research note on Friday, December 12th. Four investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $92.73.

Allegiant Travel News Roundup

Here are the key news stories impacting Allegiant Travel this week:

• Positive Sentiment: Adjusted Q4 results and beats: Allegiant reported adjusted airline‑only EPS that topped consensus and several published writeups highlighted an upside versus estimates — a primary driver supporting the stock. Allegiant Travel (ALGT) Tops Q4 Earnings and Revenue Estimates
• Positive Sentiment: Raised guidance: Management updated Q1 2026 and FY2026 EPS guidance above Street consensus (Q1: 2.50–3.50 vs. cons ~2.27; FY: 8.00 vs. cons ~7.27), which materially improves forward earnings visibility and is the main bullish catalyst. ALLEGIANT TRAVEL COMPANY FOURTH QUARTER AND FULL-YEAR 2025 FINANCIAL RESULTS
• Neutral Sentiment: Company commentary and supplemental metrics: The press release and conference call provide detail (adjusted vs. GAAP definitions, unit trends and capacity commentary) that investors will parse for sustainability of the beat. Listening to the call or reading the release helps reconcile adjusted results. View Press Release / Supplemental
• Negative Sentiment: GAAP miss and cash‑flow/capex concerns: Third‑party coverage flagged that GAAP Q4 EPS ($1.73) missed some estimates, operating profit and net income declined YoY, operating cash flow swung negative and capex jumped materially — items that could weigh on valuation if the heavy investment reduces near‑term free cash flow. Allegiant Travel Company (ALGT) stock falls on Q4 2025 Earnings
• Negative Sentiment: Analyst downgrade: Zacks moved ALGT from “strong‑buy” to “hold,” which could temper additional buying from retail/quant strategies that track rating changes. Zacks downgrade / Coverage note
• Neutral Sentiment: Insider/short‑interest notes: Recent small insider sales were reported and short‑interest data in the feed appears anomalous (zero). These items don’t currently signal material position shifts but are worth monitoring. (No primary article link provided.)

Institutional Trading of Allegiant Travel

Large investors have recently made changes to their positions in the stock. NewEdge Advisors LLC lifted its holdings in Allegiant Travel by 43.7% in the 2nd quarter. NewEdge Advisors LLC now owns 1,227 shares of the transportation company’s stock worth $67,000 after purchasing an additional 373 shares in the last quarter. iSAM Funds UK Ltd bought a new stake in Allegiant Travel during the 3rd quarter valued at about $69,000. State of Wyoming purchased a new stake in Allegiant Travel in the 2nd quarter valued at about $159,000. Tower Research Capital LLC TRC grew its stake in Allegiant Travel by 856.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,308 shares of the transportation company’s stock worth $182,000 after acquiring an additional 2,962 shares in the last quarter. Finally, FourThought Financial Partners LLC purchased a new position in shares of Allegiant Travel during the third quarter worth approximately $202,000. 85.81% of the stock is currently owned by institutional investors.

Allegiant Travel Company Profile

Allegiant Travel Company is a holding company that operates Allegiant Air, a low‐cost leisure airline offering scheduled and charter air service. The company focuses on connecting underserved secondary markets with popular vacation destinations across the United States. By targeting price‐sensitive leisure travelers, Allegiant Air operates a point‐to‐point network that avoids the traditional hub‐and‐spoke model, providing non‐stop flights from smaller cities to resort and entertainment hubs.

In addition to its core flight operations, Allegiant Travel Company offers packaged travel services that include hotel accommodations, rental cars and attraction tickets through its online portal.