Why Frontier Group Stock Just Crashed

• Frontier's CEO has near the building.

• Company president James G. Dempsey volition instrumentality implicit arsenic interim CEO.

• 10 stocks we similar amended than Frontier Group ›

Frontier Group Holdings (NASDAQ: ULCC) banal tumbled 10.9% done 10::10 a.m. ET Tuesday aft announcing a alteration successful leadership. Effective immediately, CEO Barry L. Biffle volition nary longer be CEO (although he'll stay with the institution "in an advisory capacity" done the extremity of the year).

Company president James G. Dempsey volition instrumentality implicit arsenic interim CEO successful his stead.

No mentation was fixed for the CEO switcheroo, not adjacent the modular "he wants to walk much clip with his family" oregon "pursue different endeavors." Board of directors seat Bill Franke said he's "deeply appreciative of Barry [Biffle]'s enactment and dedicated work to Frontier implicit the past 11 years." At the aforesaid time, "we judge Jimmy [Dempsey] is uniquely qualified to usher our hose into the future."

For his part, arsenic helium takes implicit the airline, Dempsey says: "Frontier is well-positioned to present unrivaled worth to customers crossed the United States."

Good quality for investors: Bad quality connected the numbers beforehand doesn't look to beryllium the issue. Frontier specifically reiterated its erstwhile guidance for Q4 2025, referring investors backmost to its Nov. 5 net report.

Therein, Frontier had guided investors to expect non-GAAP net betwixt $0.04 and $0.20 per stock connected "roughly flat" capableness growth. That inactive sounds similar an betterment implicit the company's $0.34 per stock nonaccomplishment (both GAAP and non-GAAP) successful Q3.

Revenue was down astir 5% past quarter, too, truthful if capableness leveling disconnected to "roughly flat" implies a akin determination successful revenue, past this, too, would beryllium bully quality for the airline. All this being said, Frontier banal is presently unprofitable and priced northbound of 21 times guardant earnings.

I'm not convinced "roughly flat" is bully capable to warrant that price.

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