NASDAQ$SNCY

Sun Country Airlines Holdings Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Sun Country Airlines' diversified business model delivered strong results, with revenue up and continued improvement in adjusted operating margin and adjusted earnings per share.

Sun Country Airlines reported a strong third quarter in 2023, with total revenue up by 12.3% compared to the third quarter of 2022. The company produced GAAP operating income of $19 million, with a margin of 7.6%, and adjusted operating income of $20 million, with an adjusted margin of 8.1%. The board of directors has authorized an additional $25 million for share repurchases.

  • Total revenue was up by 12.3% versus the third quarter 2022.
  • GAAP operating income of $19 million and adjusted operating income of $20 million.
  • Scheduled service TRASM declined only 5.0%, while scheduled service ASMs grew 15.1%.
  • Board of directors authorized an additional $25 million for repurchases of Sun Country shares.

Headline financials

Total Revenue

$249M

Previous: $222M+12.3%
EPS (adj)

$0.14

Previous: $0.12+16.7%
Total Revenue Per ASM

$12.11

No prior period
Fuel Cost Per Gallon

$3.19

Previous: $3.93-18.8%
Capital Expenditures

-$211M

Previous: -$178M-18.6%
Free Cash Flow

-$203M

Previous: -$167M-21.6%
Net Income

$7.59M

Previous: $10.7M-28.9%
Operating Income

$19M

Previous: $15.4M+23.5%
Gross Profit

-$75.2M

Previous: -$79.7M+5.7%
Cash & Equivalents

$27M

Previous: $132M-79.6%
Total Assets

$1.6B

Previous: $1.52B+5.2%

Revenue & EPS history

Sun Country Airlines · Revenue · Quarterly

$249M

Q3 2023+12.3%vs Q3 2022
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Sun Country Airlines · $249M total across 5 segments · Q3 2023

  • Scheduled Service
    $96.5M-5.6%
  • Ancillary
    $70.4M+40.1%
  • Charter Service
    $47.4M+10.6%
  • Cargo
    $26.1M+10.0%
  • Other
    $8.46M+219.0%

Forward guidance

Sun Country Airlines provided guidance for the fourth quarter of 2023.

Tailwinds

  • Total revenue is expected to be between $242 million and $252 million, representing a 7% to 11% increase compared to Q4 2022.
  • Total system block hours are projected to be between 36,000 and 37,000, an 11% to 15% increase year-over-year.

Headwinds

  • Operating income margin is expected to be between 3% and 5%, a decrease of (4pp) to (2pp) compared to Q4 2022.
  • Economic fuel cost per gallon is estimated at $3.20, an 11% decrease compared to the previous year.
  • Effective tax rate is projected at 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 2023

Historical avgQ3 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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