SkyWest (SKYW) Stock Rises 11.7% Since Q3 Earnings Beat
SkyWest, Inc. (SKYW) shares gained 11.7% since its third-quarter 2023 earnings release on Oct 26. The uptick can be attributed to the better-than-expected earnings and revenue performance of SkyWest in its third-quarter 2023 results.
Quarterly earnings per share (EPS) of 55 cents outpaced the Zacks Consensus Estimate of 40 cents but declined 42.7% year over year. Revenues of $766.2 million beat the Zacks Consensus Estimate of $762.6 million but slipped 2.9% year over year.
SkyWest, Inc. Price, Consensus and EPS Surprise
SkyWest, Inc. price-consensus-eps-surprise-chart | SkyWest, Inc. Quote
Revenues from flying agreements (contributing 96.8% to the top line) declined 2.8% from the prior-year reported figure of $741.89 million.
The airline carried 4.7% fewer passengers in the reported quarter on a year-over-year basis. Departures were 7.5% less on a year-over-year basis. The passenger load factor (percentage of seats filled by passengers) increased 0.5 points to 85.1%.
SkyWest has inked a new deal with United Airlines to place 19 new E175 aircraft under contract,with deliveries scheduled from late 2024 through 2026. By 2026-end, SkyWest is scheduled to operate a total of 258 E175 aircraft.
As of Sep 30, 2023, SKYW’s fleet size decreased to 493 from 530 a year ago.
Operating expenses were $717 million, up 0.4% from the year-ago reported quarter. The uptick was due to a rise in employee compensation, including higher pilot pay scales.
At the third-quarter end, the company had cash and marketable securities of $819.5 million compared with $862.3 million reported at the prior-quarter end. Long-term debt (net of current maturities) was $2,633.70 million compared with $2,743.80 million reported at the end of the prior quarter.
Per its previously announced share repurchase program authorized by SKYW’s board of directors in May 2023, SKYW repurchased 1.2 million shares for $50 million during third-quarter 2023. As of Sep 30, 2023, SkyWest had $136 million available under its current share repurchase program.
In the reported quarter, capital expenditures were $32 million. Additionally, SkyWest paid $36 million in aircraft deposits related to its order for 19 new E175 aircraft during third-quarter 2023.
Currently, SkyWest carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s JBHT third-quarter 2023 EPS of $1.80 missed the Zacks Consensus Estimate of $1.85 and declined 30% year over year.
JBHT’s total operating revenues of $3,163.8 million also lagged the Zacks Consensus Estimate of $3,224 million and fell 18% year over year. Total operating revenues, excluding fuel surcharges, decreased 15% year over year.
Delta Air Lines, Inc. (DAL) reported third-quarter 2023 EPS (excluding 31 cents from non-recurring items) of $2.03, which comfortably beat the Zacks Consensus Estimate of $1.92 and improved 35% on a year-over-year basis.
DAL’s revenues of $15,488 million beat the Zacks Consensus Estimate of $15,290.4 million and increased 11% on a year-over-year basis, driven by higher air-travel demand.
Alaska Air Group, Inc. ALK reported third-quarter 2023 EPS of $1.83, which missed the Zacks Consensus Estimate of $1.88 and declined 28% year over year.
Operating revenues of $2,839 million missed the Zacks Consensus Estimate of $2,876.1 million. The top line jumped 0.4% year over year, with passenger revenues accounting for 92.2% of the top line and increasing 0.1% owing to continued recovery in air-travel demand.
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