Allegiant Travel Co. (ALGT) has reported a fantastic third quarter and the stock is climbing. Estimates are up dramatically and pointing to a 118% increase in earnings next year.

Company Description

Allegiant Travel Company is a niche player in the airline industry, providing one-way flight services from small towns across the U.S. to Las Vegas, Florida and Arizona. The company was founded in 1997 and has a market cap of $753 million.

33% Earnings Surprise

On Oct 21 Allegiant announced its third-quarter results including earning of 24 cents per share. Wall Street analysts were only forecasting 18 cents, making the report a 33% surprise.

Revenue surged 35% too $116.9 million in a typically weak time of year. The massive spike in crude did put a dent in income, which was $8.1 million, down from $9.5 million last year.

Earnings Continue to Rise

Since the announcement the already climbing estimates have taken off. The consensus for full-year 2008 earnings is now $1.53, up from $1.09 90 days ago. The average estimate for next year is $3.32, up from $2.41 over the same time period.

While the 2008 number would make the year a 3% increase in earnings, it will be followed by a boon of 118% in 2009.

Expanding Destinations

Allegiant continues to offer more destinations. The company added nonstop service from several locations to Tampa Bay in past couple months. Allegiant is also offering its first flights to America’s playground, Las Vegas, from several states.

The Chart

Shares of ALGT have been in a bullish trend over the past month. The stock continues to set new 52-week highs. Take a look at the chart below.

Content Courtesy: Zacks Investment Research

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