Sky Harbour Group (NYSE:SKYH) Issues Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Sky Harbour Group (NYSE:SKYH) announced its quarterly earnings results on Wednesday. The company reported ($0.15) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.14) by ($0.01), Zacks reports. Sky Harbour Group had a return on equity of 6.83% and a net margin of 63.95%.The company had revenue of $0.01 million for the quarter, compared to analyst estimates of $9.44 million.

Here are the key takeaways from Sky Harbour Group’s conference call:

• Q2 revenue rose 50% year over year and 13% sequentially, driven by new campus openings, higher occupancy, and rent increases. Operating cash flow turned positive at approximately $0.5 million, which management described as a company milestone.
• Sky Harbour Capital revenue increased 79% year over year, while operating cash flow reached nearly $3 million for the quarter and marked the subsidiary’s 10th consecutive quarter of positive cash flow. Management expects operating leverage from Opa-locka Phase II and Addison Phase II to expand gross profit and EBITDA margins.
• Management reaffirmed year-end guidance for an annualized revenue run rate of $42 million to $46 million and adjusted EBITDA of $4 million to $6 million. It expects further gains from Opa-locka leasing, higher occupancy at Denver and Phoenix, and upcoming Bradley and Addison Phase II openings.
• Liquidity totaled more than $207 million in cash and U.S. Treasuries, plus approximately $130 million of available construction financing; the company also completed a $40 million common-stock placement. Management said potential public-warrant exercises could provide another roughly $94 million, but the equity issuance diluted existing shareholders.
• Adjusted EBITDA remained negative at approximately $0.9 million in Q2, while operating expenses continued to rise due partly to campus headcount and non-cash ground-lease accruals. Leasing has been slower than expected at Denver Centennial, and management acknowledged potential construction-inflation headwinds despite current costs of about $242 per square foot.

Sky Harbour Group Price Performance

Sky Harbour Group stock traded down $0.69 during mid-day trading on Thursday, reaching $10.79. 333,081 shares of the stock traded hands, compared to its average volume of 149,290. Sky Harbour Group has a 12-month low of $8.22 and a 12-month high of $11.70. The business’s 50-day moving average is $10.05 and its 200-day moving average is $9.70. The stock has a market capitalization of $826.14 million, a PE ratio of 271.53 and a beta of 1.31.

Wall Street Analyst Weigh In

SKYH has been the topic of a number of research reports. Roth Capital initiated coverage on Sky Harbour Group in a research report on Friday, July 31st. They set a “buy” rating and a $14.00 target price on the stock. Weiss Ratings upgraded shares of Sky Harbour Group from a “sell (d)” rating to a “sell (d+)” rating in a research report on Monday, July 6th. Finally, Noble Financial raised shares of Sky Harbour Group to a “strong-buy” rating in a research note on Monday, May 18th. Two research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Sky Harbour Group currently has an average rating of “Moderate Buy” and a consensus price target of $13.50.

Insider Transactions at Sky Harbour Group

In other news, Director Andrew J. Gessow bought 5,000 shares of Sky Harbour Group stock in a transaction dated Wednesday, May 20th. The shares were acquired at an average price of $8.95 per share, with a total value of $44,750.00. Following the completion of the purchase, the director owned 17,910 shares in the company, valued at $160,294.50. The trade was a 38.73% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. 40.70% of the stock is currently owned by company insiders.

Institutional Trading of Sky Harbour Group

Hedge funds and other institutional investors have recently bought and sold shares of the stock. BNP Paribas Financial Markets increased its position in shares of Sky Harbour Group by 145.6% in the third quarter. BNP Paribas Financial Markets now owns 5,012 shares of the company’s stock valued at $49,000 after buying an additional 2,971 shares in the last quarter. Quadrant Capital Group LLC acquired a new position in shares of Sky Harbour Group during the 3rd quarter worth about $99,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Sky Harbour Group by 68.2% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 11,639 shares of the company’s stock valued at $114,000 after buying an additional 4,721 shares in the last quarter. Deutsche Bank AG boosted its holdings in Sky Harbour Group by 9.9% in the 4th quarter. Deutsche Bank AG now owns 15,007 shares of the company’s stock worth $135,000 after buying an additional 1,357 shares during the last quarter. Finally, Alliancebernstein L.P. increased its stake in Sky Harbour Group by 28.6% during the 3rd quarter. Alliancebernstein L.P. now owns 17,080 shares of the company’s stock worth $169,000 after buying an additional 3,800 shares in the last quarter. 14.75% of the stock is owned by institutional investors and hedge funds.

About Sky Harbour Group

Sky Harbour Group Inc is a U.S.-based real estate development and operating company focused on private aviation infrastructure. The company specializes in the acquisition, design and management of fixed-base operations (FBOs), aircraft hangarage and private terminals that serve business and general aviation operators. By providing expedited ground handling, concierge services and state-of-the-art facilities, Sky Harbour seeks to streamline the operations of private jet owners, fractional-ownership programs and charter operators while reducing congestion at major airports.

Through strategic leases and joint-venture partnerships, Sky Harbour has established a growing presence at key regional and metropolitan airports across the United States.