SkyWest (NASDAQ:SKYW) Issues Earnings Results

SkyWest (NASDAQ:SKYW) announced its quarterly earnings data on Thursday. The transportation company reported $3.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.07 by $0.01, FiscalAI reports. The business had revenue of $1.12 billion during the quarter, compared to analyst estimates of $1.14 billion. SkyWest had a net margin of 9.78% and a return on equity of 14.58%.

Here are the key takeaways from SkyWest’s conference call:

• Third-quarter results were strong: SkyWest reported $120 million in net income, or $3.08 per diluted share, on $1.1 billion of revenue, while completing 99.9% of more than 230,000 flights.
• Fuel costs pressured the prorate business. Prorate fuel expense rose to $66 million from $34 million a year earlier as the average fuel price increased to $4.56 per gallon; management said higher yields are offsetting only part of the increase.
• SkyWest expects 2026 block hours to increase approximately 5%, with full-year EPS around $10.60, but is assuming fourth-quarter fuel costs of $4.90 per gallon. For 2027, block hours are expected to rise 1%–2% and EPS to be similar to 2026.
• The company is continuing its fleet renewal and expansion. SkyWest expects to receive 18 new E175s in 2027, reach roughly 300 E175s by year-end 2027, and deploy CRJ450 aircraft later this year, supporting longer-term cash earnings and an all-dual-class fleet.
• Management emphasized balance-sheet strength and capital flexibility, citing $1 billion of debt reduction since the end of 2022, more than $1.5 billion of unpledged assets, $238 million remaining under its buyback authorization, and planned 2027 capital expenditures of approximately $825 million.

SkyWest Price Performance

SkyWest stock traded up $1.27 during mid-day trading on Thursday, reaching $96.54. 252,939 shares of the company’s stock traded hands, compared to its average volume of 358,169. SkyWest has a 12-month low of $77.89 and a 12-month high of $117.72. The company has a quick ratio of 0.46, a current ratio of 0.57 and a debt-to-equity ratio of 0.59. The stock has a 50 day moving average of $96.94 and a two-hundred day moving average of $96.23. The company has a market cap of $3.75 billion, a price-to-earnings ratio of 9.60, a PEG ratio of 1.35 and a beta of 1.47.

SkyWest announced that its board has initiated a share buyback plan on Thursday, July 23rd that allows the company to buy back $250 million in outstanding shares. This buyback authorization allows the transportation company to buy up to 6.6% of its shares through open market purchases. Share buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Weiss Ratings restated a “hold (c+)” rating on shares of SkyWest in a research report on Wednesday, October 14th. TD Cowen reduced their price target on shares of SkyWest from $123.00 to $116.00 and set a “buy” rating on the stock in a report on Friday, October 2nd. The Goldman Sachs Group cut shares of SkyWest from a “buy” rating to a “neutral” rating and decreased their price target for the stock from $126.00 to $115.00 in a research note on Thursday, July 2nd. Finally, Cantor Fitzgerald set a $116.00 price target on shares of SkyWest in a research note on Friday, October 2nd. One equities research analyst has rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $113.00.

Insider Activity at SkyWest

In other SkyWest news, insider Wade Steel sold 22,000 shares of SkyWest stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $111.44, for a total value of $2,451,680.00. Following the completion of the transaction, the insider directly owned 55,438 shares of the company’s stock, valued at $6,178,010.72. This trade represents a 28.41% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 1.50% of the stock is owned by insiders.

About SkyWest

SkyWest, Inc (NASDAQ: SKYW) is an airline holding company that operates regional passenger air service in the United States. Its primary subsidiary, SkyWest Airlines, connects smaller and midsized communities with larger airline hubs and provides scheduled flights under capacity-purchase agreements with major airline partners.

SkyWest Airlines operates flights under the United Express, Delta Connection and Alaska Airlines brands, serving destinations throughout the United States and select locations in Canada, Mexico and the Bahamas.