It has been about a month since the last earnings report for SkyWest (SKYW). Shares have lost about 26.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is SkyWest due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat at SkyWest in Q4
The company’s earnings of $1.43 per share surpassed the Zacks Consensus Estimate of $1.41. Also, the bottom line improved 11.7% on a year-over-year basis. Results benefited from the company’s fleet-transition initiatives. Notably, SkyWest added 10 E175 aircraft and seven CRJ900 aircraft to its fleet since the fourth quarter of 2018.
Quarterly revenues came in at $743.6 million, which beat the Zacks Consensus Estimate of $737.1 million. However, the top line declined 7.45% year over year due to the sale of ExpressJet Airlines in January 2019. The carrier reported a 4.7% increase in block hours (a measure of aircraft utilization) during the reported quarter. Operating expenses declined 9.4% to $618 million owing to the sale of ExpressJet Airlines. Expenses on salaries, wages and benefits declined 16.7% to $249 million.
The company exited 2019 with cash and marketable securities of $520 million, down 24.5% year over year. Long-term debt (net of current maturities) fell 7.14% year over year to $2.6 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We are optimistic about the company’s efforts to reward shareholders. Evidently, the company bought back shares worth $10 million under its $250-million buyback program during the quarter under review.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted -8.82% due to these changes.
At this time, SkyWest has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, SkyWest has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
To read this article on Zacks.com click here.