SkyWest (SKYW) Q2 Loss Wider Than Expected, Load Factor Tanks
SkyWest‘s SKYW second-quarter 2020 loss of 51 cent per share was wider than the Zacks Consensus Estimate of a loss of 2 cents. Results were hurt by coronavirus-induced low air-travel demand. The company reported earnings of $1.71 per share in the year-ago quarter when air-travel demand was strong.
Moreover, quarterly revenues of $350 million plunged 53% year over year and missed the Zacks Consensus Estimate of $352.4 million. The COVID-19 pandemic caused a significant reduction in the number of scheduled flights, thereby hurting the top line.
Revenues from flying agreements (contributing 96.1% to the top line) decreased 53.6% from the year-ago quarter’s figure. Total expenses fell 41% to $354.4 million due to lower number of operating flights. The carrier reported a 66% decline in block hours (a measure of aircraft utilization) during the reported quarter. Passenger load factor (percentage of seats filled by passengers) deteriorated 4950 basis points to 34.4% 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
Liquidity
The company, carrying a Zacks Rank #5 (Strong Sell), exited the second quarter with cash and marketable securities of $762 million, up from $520 million at 2019 end. Long-term debt (net of current maturities) inched up 1.3% year over year to $2.6 billion.
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Sectorial Snapshot
Let’s take a look into some other Zacks Transportation sector companies’ second-quarter results.
Canadian National’s CNI second-quarter 2020 earnings (excluding 36 cents from non-recurring items) of 92 cents per share (C$0.77) were in line with the Zacks Consensus Estimate. However, the bottom line declined 28.7% year over year. Quarterly revenues of $2,315 million (C$3,209 million) missed the Zacks Consensus Estimate of $2,407.6 million and fell 21.8% year over year.
J.B. Hunt Transport JBHT, reported second-quarter 2020 earnings of $1.14 per share that surpassed the Zacks Consensus Estimate by 31 cents. Total revenues of $2,145.6 million beat the Zacks Consensus Estimate of $2,060.9 million.
Kansas City Southern’s KSU second-quarter earnings (excluding a penny from non-recurring items) of $1.15 per share beat the Zacks Consensus Estimate of $1.12. Total revenues of $547.9 million lagged the consensus mark of $550.2 million.
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Canadian National Railway Company (CNI) : Free Stock Analysis Report
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