NASDAQ$SNCY

Sun Country Airlines Holdings Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Sun Country Airlines reported record Q1 2023 revenue, GAAP diluted EPS, and operating income.

Sun Country Airlines reported a strong first quarter in 2023, with record revenue of $294 million, a 29.8% increase year-over-year. GAAP diluted EPS reached $0.64, and operating income was $56 million, both also record highs. The company saw a 20.8% increase in total average fare and an 8.6 percentage point gain in load factor compared to the first quarter of 2022.

  • Total operating revenue increased by 29.8% year-over-year, reaching $294.1 million.
  • GAAP operating income increased by 155.5% year-over-year, reaching $55.8 million.
  • Net income increased significantly by 953.8% year-over-year, reaching $38.3 million.
  • Adjusted diluted earnings per share increased by 240.0% year-over-year, reaching $0.68.

Headline financials

Total Revenue

$294M

Previous: $227M+29.8%
EPS (adj)

$0.68

Previous: $0.20+240.0%
Capital Expenditures

-$105M

Previous: -$49.7M-111.3%
Free Cash Flow

-$66.7M

Previous: -$46M-44.7%
Net Income

$38.3M

Previous: $3.64M+953.8%
Operating Income

$55.8M

Previous: $21.8M+155.5%
Gross Profit

-$85.8M

Previous: -$78M-10.0%
Cash & Equivalents

$71.6M

Previous: $272M-73.7%
Total Assets

$1.58B

Previous: $1.42B+11.4%

Revenue & EPS history

Sun Country Airlines · Revenue · Quarterly

$294M

Q1 2023+29.8%vs Q1 2022
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Sun Country Airlines · $561M total across 6 segments · Q1 2023

  • Passenger
    $267M
  • Scheduled Service
    $153M
  • Ancillary
    $68.4M
  • Charter Service
    $46.2M+40.0%
  • Cargo
    $23.4M+11.2%
  • Other
    $3.49M

Forward guidance

Sun Country Airlines provided guidance for the second quarter of 2023, expecting total revenue between $255 million and $265 million and an operating income margin between 11% and 16%.

Tailwinds

  • Total revenue is expected to increase by 16% to 21% compared to Q2 2022.
  • Operating income margin is projected to be between 11% and 16%, a 9 to 14 percentage point increase from Q2 2022.
  • Total system block hours are expected to increase by 11% to 14% compared to Q2 2022.
  • Economic fuel cost per gallon is estimated to be $2.85, a 35% decrease year-over-year.
  • The company anticipates pressure on non-fuel CASM to ease during the year.

Headwinds

  • Effective tax rate is expected to be 23%.
  • Decreased aircraft utilization levels negatively impacted unit costs in Q1.
  • The company is normalizing its aircraft utilization.
  • The company expects to pursue more ad-hoc charter flying.
  • Second quarter guidance not as high as Q1 results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.5%

Avg return

Earnings day

-0.2%

Avg return

5 days after

-1.7%

Avg return

30 days after

65%

17 / 26 earnings

Positive

+13.3%

Q3 2022

Best reaction

-22.0%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.4%+6.8%
Q4 2025+12.6%+7.6%-16.3%
Q3 2025+6.5%+12.4%+29.1%
Q2 2025-11.0%-8.9%+14.3%
Q1 2025+0.3%+14.7%+18.2%
Q4 2024-0.9%+8.3%-8.0%
Q3 2024+11.7%+14.6%+14.4%
Q2 2024-15.8%-18.0%-16.2%
Q1 2024-19.3%-18.1%-25.3%
Q4 2023+6.3%+1.0%+8.8%
Q3 2023-3.6%-2.9%+32.3%
Q2 2023-22.0%-24.8%-29.1%
Q1 2023+8.1%-2.6%+0.7%
Q4 2022+12.5%+13.1%+8.3%
Q3 2022+13.3%+16.3%+24.1%
Q2 2022-10.9%-4.9%+0.4%
Q1 2022-11.5%-15.8%-26.2%
Q4 2021+4.2%+8.6%-7.9%
Q3 2020+1.0%+8.2%-15.6%
Q3 2021+1.0%+8.2%-15.6%
Q2 2020+0.4%-4.8%-4.3%
Q2 2021+0.4%-4.8%-4.3%
Q1 2020+1.9%-5.9%-6.5%
Q4 2020+1.9%-5.9%-6.5%
Q4 2019+1.9%-5.9%-6.5%
Q1 2021-4.5%-2.0%-3.5%
Q1 2019
Q1 2018

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