Allegiant Travel Company ALGT is scheduled to report second-quarter 2018 earnings on Jul 25, after market close.In the first quarter of 2018, the company’s earnings came in at $3.42 per share, surpassing the Zacks Consensus Estimate of $3. The bottom line increased significantly on a year-over-year basis. The quarterly results were aided by higher revenues.Quarterly revenues increased in double-digits on a year-over-year basis to $425.4 million, marginally above the Zacks Consensus Estimate of $425.1 million. The top line was primarily driven by significant increase in ancillary revenues.Let’s see how things shape up for this announcement.Factors at PlayWe expect high labor costs to hurt the bottom line in the soon-to-be reported quarter. Escalating fuel costs, expected at $2.38 per gallon, do not bode well for the stock.Moreover, woes related to capacity extension are major concerns. For the quarter under review, the company anticipates average seat miles (scheduled and system) to increase in the range of 10-14%. The Zacks Consensus Estimate for second-quarter capacity is pegged at 4,013 million, which reflects an increase from 3,729 million in first-quarter 2018.Additionally, shares of Allegiant are still suffering from CBS News’ Report, 60 Minutes, which alleged that the company was facing a number of safety-related issues. These allegations are being investigated. We expect an update on this front during the second-quarter conference call.However, the company’s efforts to reward shareholders through share buybacks and dividend payments are impressive. Its fleet-modernization initiatives look encouraging as well.Allegiant Travel Company Price and EPS Surprise Allegiant Travel Company Price and EPS Surprise | Allegiant Travel Company QuoteEarning WhispersAccording to the Zacks model, a company needs to have the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase the odds of an earnings surprise. However, that is not the case as highlighted below.Earnings ESP: Allegiant has an Earnings ESP of -3.52% as the Most Accurate Estimate is at $2.57 per share, lower than the Zacks Consensus Estimate of $2.66. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: Allegiant carries a Zacks Rank #4 (Sell), which lowers the predictive power of ESP.In fact, we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into an earnings announcement, especially when the company is seeing negative estimate revisions.Stocks to ConsiderInvestors interested in the broader Zacks Transportation Sector may check out the following companies with the right combination of elements to beat estimates in the next releases:Hawaiian Holdings, Inc HA has an Earnings ESP of +5.56% and a Zacks Rank #3. The company will release second-quarter 2018 results on Jul 24. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Old Dominion Freight Line, Inc ODFL has an Earnings ESP of +1.87% and a Zacks Rank #2 (Buy). The company will release second-quarter 2018 results on Jul 26.C.H. Robinson Worldwide, Inc CHRW has an Earnings ESP of +0.79% and a Zacks Rank #3. The company will release second-quarter 2018 results on Jul 31.Looking for Stocks with Skyrocketing Upside?Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.See the pot trades we're targeting>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report Old Dominion Freight Line, Inc. (ODFL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research