Controladora Vuela Compania de Aviacion (NYSE:VLRS) Posts Earnings Results, Misses Estimates By $0.58 EPS

Key Points

• Q1 miss: Controladora Vuela (NYSE:VLRS) reported EPS of ($0.62) vs. a ($0.04) consensus, missing by $0.58, and revenue of $770.0M versus estimates of $776.17M; the company showed a negative ROE (38.03%) and a net margin of -3.42%.
• Shares opened at $7.34 (12‑month range $3.49–$10.80) with a market cap of $856.2M and a negative P/E of -8.25; liquidity is weak (current ratio 0.73) and leverage is notable (debt/equity 1.68).
• Analyst sentiment is mixed with an average rating of Hold and a $8.63 consensus target after recent downgrades and price-target cuts from banks, while institutional ownership stands at ~53% with several firms increasing stakes (e.g., Arrowstreet, Schonfeld).

Controladora Vuela Compania de Aviacion (NYSE:VLRS - Get Free Report) posted its quarterly earnings data on Monday. The transportation company reported ($0.62) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.58), Zacks reports. Controladora Vuela Compania de Aviacion had a negative return on equity of 38.03% and a negative net margin of 3.42%.The business had revenue of $770.00 million for the quarter, compared to analyst estimates of $776.17 million.

Controladora Vuela Compania de Aviacion Price Performance

Shares of VLRS stock opened at $7.34 on Tuesday. Controladora Vuela Compania de Aviacion has a 12 month low of $3.49 and a 12 month high of $10.80. The company has a market capitalization of $856.19 million, a P/E ratio of -8.25 and a beta of 1.92. The stock has a 50 day moving average of $7.78 and a two-hundred day moving average of $8.02. The company has a current ratio of 0.73, a quick ratio of 0.72 and a debt-to-equity ratio of 1.68.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of VLRS. American Century Companies Inc. boosted its stake in Controladora Vuela Compania de Aviacion by 2.8% during the second quarter. American Century Companies Inc. now owns 281,473 shares of the transportation company's stock worth $1,337,000 after buying an additional 7,626 shares in the last quarter. Jump Financial LLC bought a new stake in Controladora Vuela Compania de Aviacion in the 2nd quarter valued at $1,611,000. Shay Capital LLC acquired a new position in shares of Controladora Vuela Compania de Aviacion in the 2nd quarter valued at $214,000. Arrowstreet Capital Limited Partnership raised its stake in shares of Controladora Vuela Compania de Aviacion by 48.9% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,720,522 shares of the transportation company's stock valued at $12,353,000 after buying an additional 565,250 shares in the last quarter. Finally, Schonfeld Strategic Advisors LLC lifted its holdings in shares of Controladora Vuela Compania de Aviacion by 127.4% during the 3rd quarter. Schonfeld Strategic Advisors LLC now owns 58,177 shares of the transportation company's stock worth $418,000 after acquiring an additional 32,596 shares during the period. 53.32% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Weiss Ratings reissued a "sell (d)" rating on shares of Controladora Vuela Compania de Aviacion in a research report on Monday, April 20th. Barclays dropped their target price on shares of Controladora Vuela Compania de Aviacion from $12.00 to $10.00 and set an "overweight" rating on the stock in a research report on Tuesday, March 24th. JPMorgan Chase & Co. cut their target price on shares of Controladora Vuela Compania de Aviacion from $11.00 to $10.50 and set a "neutral" rating for the company in a research note on Thursday, March 12th. Zacks Research downgraded shares of Controladora Vuela Compania de Aviacion from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 24th. Finally, The Goldman Sachs Group lowered shares of Controladora Vuela Compania de Aviacion from a "buy" rating to a "neutral" rating and set a $7.60 price target on the stock. in a research report on Monday, April 13th. Five investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $8.63.

Controladora Vuela Compania de Aviacion Company Profile

Controladora Vuela Compañia de Aviacion, SAB de CV NYSE: VLRS is a Mexico-based airline holding company whose primary business is the operation of low-cost scheduled air transportation services. Through its principal operating subsidiary, Volaris, the company provides passenger and cargo flights on domestic and international routes. Its business model emphasizes unbundled ancillary services and point-to-point operations designed to offer competitive fares across its network.

Volaris serves more than 120 routes linking major metropolitan areas and secondary cities in Mexico, the United States and Central America.