{"id":34239,"date":"2012-09-15T08:42:00","date_gmt":"2012-09-15T08:42:00","guid":{"rendered":"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/spirit-airlines-shares-plunge-on-profit-warning-save\/34238\/"},"modified":"2012-09-15T08:42:00","modified_gmt":"2012-09-15T08:42:00","slug":"spirit-airlines-shares-plunge-on-profit-warning-save","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/spirit-airlines-shares-plunge-on-profit-warning-save\/34239\/","title":{"rendered":"Spirit Airlines Shares Plunge on Profit Warning (SAVE)"},"content":{"rendered":"<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - News Links *\/\ngoogle_ad_slot = \"3490797620\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<p>Shares of Spirit Airlines Inc (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=SAVE\" target=\"_blank\" rel=\"noopener\">NASDAQ: SAVE<\/a>) slumped on Friday after the company issued a profit warning, citing foreseen plunge in revenue.<\/p>\n<p><span id=\"more-34239\"><\/span><\/p>\n<p>The Florida-based Company, which went public in May 2011, said that revenue-per-available seat mile, which is a gauge on how much revenue an airline generates by flying each passenger for a mile, will shrink by 2.5 % to 4.5%. Moreover, the impact of hurricane Issac will also hurt the top-line figures, said Spirit Airlines.<\/p>\n<p>Earlier in August, a congressional face-off resulted in a period when certain state taxes on airline tickets were not imposed; accordingly airline companies, including Spirit Airlines raised the fares equivalent to uncollected taxes, boosting revenue.<\/p>\n<p>Even though the stock felt the heat on Friday as edgy investors offloaded their holdings, analysts are not that concerned about Spirit Airlines\u2019 performance in the future.<\/p>\n<p>Citigroup\u2019s equity strategist, Steven Trent maintained the \u201cbuy\u201d rating, citing that company\u2019s fundamentals were still intact. Mr. Trent also pointed out that Spirit reported 19% increase in passenger traffic compared to same period last year.<\/p>\n<p>Maxim Group\u2019s Ray Neidl also retained the \u201cbuy\u201d rating, stating that airlines has potential \u00a0to grow by 20% ever year as it looks to spread out its operations in many emerging markets.<\/p>\n<p>Nevertheless, Raymond James\u2019 analyst, Savanthi Syth keeps a shoddy outlook on the airlines.\u00a0 She lowered Spirit Airlines rating to &#8220;Market Perform&#8221; from &#8220;Outperform,&#8221; citing the downwardly revision in unit revenue prediction points towards a weakening booking forecast.<\/p>\n<p>\u201cMoreover, this is the fourth quarter in a row where we and the Street have overestimated Spirit&#8217;s profitability and earnings predictability, and it appears that the business may not have the margin expansion opportunity we had previously anticipated,\u201d Syth said in her research note.<\/p>\n<p>Although Syth acknowledged the fact that Spirit Airlines\u2019 margins were among the best in the industry, she believes that investors should wait for the time being.<\/p>\n<p>Shares plunged 15.67% to trade at $16.58 on Friday, the biggest one day fall ever since it started taping capital markets.\u00a0 The Company\u2019s 52 week range is between $10.73 and $24.75.<\/p>\n<p>&nbsp;<\/p>\n<div class=\"nr_clear\"><\/div>\n<div id=\"nrelate_popular_2\" class=\"nrelate nrelate_popular nrelate_default nr_1col nr_text\"><\/div>\n<p>\t<!--[if IE 6]>\n\t\t<script type=\"text\/javascript\">jQuery('.nrelate_default').removeClass('nrelate_default');<\/script>\n\t<![endif]--><\/p>\n<p>\t<script type=\"text\/javascript\">\n\t\/* <![CDATA[ *\/\n\t\tnRelate.domain = \"www2.thestockmarketwatch.com%2Fstock-market-news\";\n\t\tvar entity_decoded_nr_mp_url = jQuery('<span\/>').html(\"https:\/\/web.archive.org\/web\/20120916222019\/http:\/\/api.nrelate.com\/mpw_wp\/0.51.2\/?tag=nrelate_popular&domain=www2.thestockmarketwatch.com%2Fstock-market-news&url=http%3A%2F%2Fwww2.thestockmarketwatch.com%2Fstock-market-news%2Fspirit-airlines-shares-plunge-on-profit-warning-save%2F34239&nr_div_number=2&maxageposts=7200&increment=1\").text();\n\t\tnRelate.getNrelatePosts(entity_decoded_nr_mp_url);\n\t\/* ]]&gt; *\/\n\t<\/script>\n\n\n<div class=\"nr_clear\"><\/div>\n\n\n\n\n<!-- AddThis Button BEGIN -->\n\n\n<div class=\"addthis_toolbox addthis_default_style addthis_32x32_style\">\n<a class=\"addthis_button_preferred_1\"><\/a>\n<a class=\"addthis_button_preferred_2\"><\/a>\n<a class=\"addthis_button_preferred_3\"><\/a>\n<a class=\"addthis_button_preferred_4\"><\/a>\n<a class=\"addthis_button_compact\"><\/a>\n<a class=\"addthis_counter addthis_bubble_style\"><\/a>\n<\/div>\n\n\n<script type=\"text\/javascript\">var addthis_config = {\"data_track_addressbar\":true};<\/script>\n<script type=\"text\/javascript\" src=\"http:\/\/s7.addthis.com\/js\/250\/addthis_widget.js#pubid=pennystocksfinder\"><\/script>\n<!-- AddThis Button END -->\n\n\n\n\n<p>More Posts by this author<\/p>\n\n\n\n<ul>\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/stocks-end-higher-for-the-week-4\/34243\">\nStocks End Higher for the Week<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/spirit-airlines-shares-plunge-on-profit-warning-save\/34239\">\nSpirit Airlines Shares Plunge on Profit Warning (SAVE)<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/gold-prices-settle-higher-23\/34237\">\nGold Prices Settle Higher<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/stocks-end-higher-on-qe3\/34216\">\nStocks End Higher on QE3<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/gold-prices-settle-higher-silver-prices-slip-2\/34215\">\nGold Prices Settle Higher; Silver Prices Slip<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/stocks-holding-on-to-gains-in-mid-day-trading-3\/34212\">\nStocks Holding on to Gains in Mid-Day Trading<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/ocean-power-technologies-optt-opt-got-off-to-a-strong-start-in-fiscal-2013\/34192\">\nOcean Power Technologies &#8211; OPTT &#8211; OPT got off to a strong start in fiscal 2013<\/a><\/li>\n\n\n\n<\/ul>\n\n\n\n\n\n\n<hr>\n\n\n\n\n\n<table style=\"border:none;margin:0;\">\n\n\n<tr>\n\n\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/web.archive.org\/web\/20120916222019im_\/http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/wp-content\/uploads\/userphoto\/5.jpg\" alt=\"edliston\" width=\"125\" height=\"125\" class=\"photo\"><\/td>\n\n\n\n\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n\n\n<div style=\"font-size:11pt;\"><b>Post Written By: Ed Liston <\/b><\/div>\n\n\n\n\n<div style=\"font-size:10pt;\">\n\nEd Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.\n<\/div>\n\n\n<\/td>\n\n<\/tr>\n\n<\/table>\n\n\n\n\n\n\n<script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"pub-1408583772585547\";\n\/* 336x280, created 7\/9\/11 *\/\ngoogle_ad_slot = \"3552319058\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\/\/-->\n<\/script>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script>\n\n\t\t\t\t\t\t\n\n\t\n\n<div style=\"margin:5px;margin-bottom:20px;font-size:11pt;\">&laquo; <a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/\">Return to Stock Market News<\/a> &laquo; <\/div>\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shares of Spirit Airlines Inc (NASDAQ: SAVE) slumped on Friday after the company issued a profit warning, citing foreseen plunge [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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