SkyWest, Inc.‘s SKYW first-quarter 2020 earnings of 59 cents per share missed the Zacks Consensus Estimate of 88 cents. Also, the bottom line deteriorated 55.64% on a year-over-year basis primarily due to fall in demand in March 2020 stemming from the COVID-19 outbreak.
Quarterly revenues came in at $729.9 million, which beat the Zacks Consensus Estimate of $690 million. Moreover, the top line increased marginally year over year due to inclusion of 16 E175 aircrafts since first-quarter 2019.
Revenues from flying agreements (contributing 97.2% to the top line) inched up 1.35% from the year-ago quarter’s figure. Total expenses rose 5.8% to $663.6 million due to higher aircraft maintenance, materials and repairs as well as depreciation and amortization costs. The carrier reported a 2.2% increase in block hours (a measure of aircraft utilization) during the reported quarter. Passenger load factor (percentage of seats filled by passengers) deteriorated 111 basis points to 67.5% in the reported quarter due to shrink in air travel demand thanks to the pandemic.
SkyWest Inc Price, Consensus and EPS Surprise
SkyWest Inc price-consensus-eps-surprise-chart | SkyWest Inc Quote
The company, carrying a Zacks Rank #5 (Strong Sell), exited the first quarter with cash and marketable securities of $578 million, up from $520 million at 2019 end. Long-term debt (net of current maturities) fell 3.8% year over year to $2.5 billion.
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The company used $20 million to repurchase stock during first-quarter 2020.
Unlike SkyWest, there are a few companies in the Zacks Transportation sector like Werner Enterprises, Inc. WERN, Union Pacific Corporation UNP and Canadian Pacific Railway Limited CP that have surpassed earnings estimates in first-quarter 2020.
Werner Enterprises reported first-quarter 2020 earnings per share (excluding 7 cents from non-recurring items) of 40 cents, which surpassed the Zacks Consensus Estimate of 35 cents. However, the bottom line declined 23.1% year over year.
Union Pacific’s first-quarter 2020 earnings of $2.15 per share surpassed the Zacks Consensus Estimate of $1.86. Moreover, the bottom line increased 11.4% on a year-over-year basis.
Canadian Pacific’s first-quarter 2020 earnings (excluding $1.08 from non-recurring items) of $3.3 (C$4.42) per share surpassed the Zacks Consensus Estimate of $2.86. Quarterly earnings surged more than 55% year over year.
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