Post a Free Blog

Submit A Press Release

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Filter by Categories
Action
Animation
ATP Tour (ATP)
Auto Racing
Baseball
Basketball
Boxing
Breaking News
Business
Business
Business Newsletter
Call of Duty (CALLOFDUTY)
Canadian Football League (CFL)
Car
Celebrity
Champions Tour (CHAMP)
Comedy
CONCACAF
Counter Strike Global Offensive (CSGO)
Crime
Defense of the Ancients (DOTA)
Documentary and Foreign
Drama
eSports
European Tour (EPGA)
Fashion
FIFA
FIFA Women’s World Cup (WWC)
FIFA World Cup (FIFA)
Fighting
Football
Formula 1 (F1)
Fortnite
Golf
Health
Hockey
Horror
IndyCar Series (INDY)
International Friendly (FRIENDLY)
Kids & Family
League of Legends (LOL)
LPGA
Madden
Major League Baseball (MLB)
Mixed Martial Arts (MMA)
MLS
Movie and Music
Movie Trailers
Mystery
NASCAR Cup Series (NAS)
National Basketball Association (NBA)
National Football League (NFL)
National Hockey League (NHL)
National Women's Soccer (NWSL)
NBA Development League (NBAGL)
NBA2K
NCAA Baseball (NCAABBL)
NCAA Basketball (NCAAB)
NCAA Football (NCAAF)
NCAA Hockey (NCAAH)
Olympic Mens (OLYHKYM)
Other
Other Sports
Overwatch
PGA
Politics
Premier League (PREM)
Romance
Sci-Fi
Science
Soccer
Sports
Sports
Technology
Tennis
Thriller
Truck Series (TRUCK)
Ultimate Fighting Championship (UFC)
Uncategorized
US
Valorant
Women’s National Basketball Association (WNBA)
Women’s NCAA Basketball (WNCAAB)
World
World Cup Qualifier (WORLDCUP)
WTA Tour (WTA)
Xfinity (XFT)
XFL
0
-- Advertisement --spot_img
HomeBusinessFrontier Group Hit With a Downgrade at Raymond James, Stock Drops 5...

Frontier Group Hit With a Downgrade at Raymond James, Stock Drops 5 percent

Add to Favorite
Added to Favorite


Frontier Group Holdings (NASDAQ:ULCC) stock plunged more than 5% intra-day today after Raymond James analysts downgraded the company to Underperform from Market Perform, adjusting earnings forecasts due to a lower completion factor in Q2/24 and a revised industry revenue outlook.
Despite multiple initiatives to restore earnings and return margins to historical levels, the analysts noted that these efforts initially had a negative impact before potentially yielding positive results. Start-up costs for new bases, the need to mature new markets, and delays in adopting new offerings are contributing factors.
Some initiatives, like network reallocation, face challenges from a shifting competitive landscape that may erode expected benefits. Frontier’s completion factor continues to lag behind most U.S. peers, both absolutely and year-over-year. While Frontier has made significant adjustments to August schedules, focusing on off-peak days, the analysts view this as a temporary fix for longer-term concerns about Frontier’s planned growth with 240-seat A321s.
The analysts suggest that pushing out deliveries and changing the mix to include lower-gauge aircraft could improve investor sentiment. However, there is a disincentive for Frontier to delay deliveries due to the loss of sale/lease-back (SLB) gains. The airline industry is incentivized to grow to capture the difference between aircraft purchase prices and market rates, and the analysts do not fault Frontier management’s accounting of SLB gains, attributing it to changes in U.S. GAAP in 2019.
The analysts concluded that if Frontier’s earnings do not improve, lessors may demand more concessions, reducing the benefits from SLB gains.

Subscribe to get Latest News Updates

Latest News

You may like more
more

Wiz Chooses IPO Over $23 Billion Google Deal: CWEB Reports

Several outlets, including CWEB, reported that Alphabet's Google (GOOGL)...

Comcast Maintained at Buy by Loop Capital Despite Media Revenue Miss

Loop Capital analysts reaffirmed a Buy rating for Comcast...

Rosenblatt Analyst Increases Calix Price Target to $45 After Q2 Earnings Report

Rosenblatt analysts increased the price target for Calix (NYSE:CALX)...

AT&T Matches Q2 EPS Estimates Despite Slight Revenue Miss, Shares Climb Over 3 percent

AT&T (NYSE:T) released its second-quarter earnings report, meeting analyst...