Spirit Airlines (NYSE: SAVE)
Spirit Airlines is schedule to released their 2019 4th Quarter Earnings Report on February 5th 2020. Spirit airlines is an American based airline with primarily domestic routes within the continuous United States with a few flights down to the Caribbean and Central America.
The are one of the leaders in the industry of low-cost carrier. If you are looking for first class luxuries and endless amenities please look else where as this is not going to be your airline of choice. Spirit Airlines appeals to those looking to save on their ticket by only purchasing that which they will be using. So extra meals, drinks, leg space will not be provided unless specifically requested and paid for.
Overall the business practices of Spirit airlines allow them to be extremely competitive in their efforts to maximize their revenue by reducing costs dramatically.
Fundamental Overview
When we look back at the history of Spirit Airlines (NYSE: SAVE) we can see a strong history of performing just as planned if not slightly better. The company has shown a great track record of being able to accurately make target goals and consistently achieve their desired outcome. This is a great trait for investors to see in stocks.
This allows for investors to be better equipped to make decisions based on the information provided by the company. We can see that the forecased revenue for this report is slight lower than the previous quarter. while earning per share is also projected to be lower as compared to previous months.
When we look back to compare with the previous years numbers we can see some similarity in the forecast being reduced. Although traditionally the holidays shows to be a peak season of business for airlines, Spirit generate much of its revenue in the off seasons when it attracts guests with its lowered rates.
Technical Analysis
Spirit Airlines has been in a downward trending pattern for a majority of 2019 similar to a few other stocks that we have looked at. Now with the new year starting off we can see how price has formed a support level off the last earnings report.
Price has been slightly trending upwards in a channel looking to break out of the overall downward trend that has been dominating the stock.
We are currently nearing the next major resistance level that we broke down below back on two earnings reports ago. This next report coming out has the potential to push the stock up above the zone towards levels that we once saw back in 2019.
Although for their to be a strong impulsive move upwards breaking up past the resistance levels the report is going to need to dramatically surpass the outlook made.
If the outlook is slightly optimistic than we can expect a slight push upwards followed by some sideways consolidation. This does not rule out the possibility of a negative release. Should the report come out below forecasted earnings than we will see price break down below the current channel forming a new level of significance for the stock.
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