NASDAQ$SNCY

Sun Country Airlines Holdings Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Sun Country Airlines reported third quarter results with GAAP diluted EPS of $0.18 and operating income of $15 million.

Sun Country Airlines reported a strong leisure demand environment in Q3 2022, with a 39% increase in scheduled service unit revenue compared to Q3 2021. Despite higher fuel prices and the impact of Hurricane Ian, the company achieved a GAAP operating margin of 6.9% and an adjusted operating income margin of 7.2%. Total revenue for the quarter was $222 million.

  • Scheduled service unit revenue increased 39% versus third quarter 2021.
  • GAAP operating margin of 6.9% and an adjusted operating income margin of 7.2%.
  • Pilot training pipeline expanded with 91 pilots hired in 2022, a 20% increase.
  • Board of directors authorized management to repurchase up to $50 million worth of SNCY shares.

Headline financials

Total Revenue

$222M

Previous: $174M+27.7%
EPS (adj)

$0.12

Previous: $0.23-47.8%
Scheduled Service TRASM

$12.30

No prior period
Fuel Cost Per Gallon

$3.93

Previous: $2.24+75.4%
Capital Expenditures

-$178M

Previous: -$111M-60.0%
Free Cash Flow

-$167M

Previous: -$97.2M-71.9%
Net Income

$10.7M

Previous: $13.9M-23.2%
Operating Income

$15.4M

Previous: $22M-30.0%
Gross Profit

-$79.7M

Previous: -$52.6M-51.4%
Cash & Equivalents

$132M

Previous: $275M-52.1%
Total Assets

$1.52B

Previous: $1.34B+13.3%
Stock-Based Comp

$486K

Previous: $964K-49.6%

Revenue & EPS history

Sun Country Airlines · Revenue · Quarterly

$222M

Q3 2022+27.7%vs Q3 2021
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Sun Country Airlines · $222M total across 5 segments · Q3 2022

  • Scheduled Service
    $102M
  • Ancillary
    $50.3M
  • Charter Service
    $42.9M
  • Cargo
    $23.7M
  • Other
    $2.65M

Forward guidance

Sun Country Airlines provided guidance for the fourth quarter of 2022, including total revenue between $220 million and $230 million, an economic fuel cost per gallon of $3.75, an operating income margin between 4% and 8%, an effective tax rate of 23%, and total system block hours between 32,000 and 33,000.

Tailwinds

  • Total revenue between $220 million and $230 million, a 27% to 33% increase compared to Q4 2021.
  • Total system block hours - thousands 32 to 33, a 9% to 12% increase compared to Q4 2021.
  • Economic fuel cost per gallon $3.75
  • Operating income margin - percentage 4% to 8%
  • Effective tax rate 23%

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 Q3 2022

Historical avgQ3 2022

-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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