WASHINGTON - In a recent turn of events, Spirit Airlines (NYSE:SAVE) and JetBlue Airways (NASDAQ:JBLU) are preparing to challenge a legal setback after a U.S. judge obstructed their proposed $3.8B merger deal. The airlines are set to present their case to the U.S. Court of Appeals for the First Circuit.
Amidst these developments, Spirit Airlines Inc (NYSE:SAVE) has been navigating through turbulent financial skies. The company's stock price has seen a significant fluctuation over the past year, trading between $4.04 and $19.21. Despite this volatility, there seems to be a silver lining as Spirit's preliminary earnings suggest that the airline might hit the upper end of its total revenue forecast.
The current market sentiment around Spirit Airlines is cautious, with analysts giving the stock a Moderate Sell rating, albeit with an $8.33 price target that suggests some potential for upside. The airline's market capitalization stands at approximately $729M, and it boasts a substantial workforce of over 11,000 employees. The ownership structure of the company shows a mix of roughly 0.9% insiders and about 68% institutional holders.
In terms of financial performance, Spirit's latest quarterly report has surpassed earnings per share (EPS) expectations by $0.11, coming in at -$1.37. Notwithstanding this beat, the company's future financial health indicators raise some concerns. Spirit's quick ratio is below one, which may signal liquidity issues, and the price to sales ratio over the past twelve months is considered low.
Nonetheless, the last quarter's sales figures were impressive, with the airline generating over $1B in revenue against nearly 110 million total shares outstanding. As the appeal process unfolds, stakeholders and observers alike will be keenly watching the next moves of Spirit Airlines and JetBlue in their quest to merge.
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