- Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS, Financial) surpassed Q2 earnings expectations with a GAAP EPADS of -$0.54.
- Analysts indicate a promising potential upside of approximately 59.11% based on current price targets.
- GuruFocus projects a substantial upside of 93.65% with a GF Value of $8.54 for VLRS.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) delivered an impressive second-quarter performance, reporting a GAAP EPADS of -$0.54, which outperformed expectations by $0.22. This achievement was accompanied by a revenue surge to $693 million, surpassing projections by $5.45 million.
Quarterly Performance Highlights
The airline experienced an 8.7% capacity increase, reaching 8.9 billion ASMs, while passenger numbers climbed by 6.3% to 7.5 million. Despite these gains, the TRASM decreased by 12.2% to $7.80 cents, primarily due to the depreciation of the peso, and the load factor declined to 82.4%.
Wall Street Analysts Forecast
The outlook from Wall Street remains optimistic for Controladora Vuela Compania de Aviacion SAB de CV (VLRS, Financial). The one-year price targets from 12 analysts provide an average target price of $7.02, with projections ranging from a low of $4.40 to a high of $13.00. This suggests a potential upside of 59.11% from the current trading price of $4.41. For a comprehensive view of these projections, visit the Controladora Vuela Compania de Aviacion SAB de CV (VLRS) Forecast page.
Brokerage Recommendations and GF Value Estimation
With a consensus recommendation from 13 brokerage firms, Controladora Vuela Compania de Aviacion SAB de CV (VLRS, Financial) maintains an average brokerage recommendation of 2.1, reflecting an "Outperform" status on the scale where 1 is a Strong Buy and 5 is a Sell.
In terms of valuation, GuruFocus's estimates suggest a compelling future for VLRS. The estimated GF Value is pegged at $8.54, indicating an impressive upside potential of 93.65% from the current stock price of $4.41. The GF Value leverages historical price multiples as well as projected business growth to determine the stock's inherent fair value. Additional insights are available on the Controladora Vuela Compania de Aviacion SAB de CV (VLRS, Financial) Summary page.
