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SkyWest (SKYW) Up 2.6% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for SkyWest (SKYW - Free Report) . Shares have added about 2.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is SkyWest due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
SkyWest Q1 Earnings & Revenues Beat Estimates
The company delivered better-than-expected results in the first quarter of 2019. The company’s earnings (on an adjusted basis) of $1.33 per share, surpassed the Zacks Consensus Estimate of $1.18. Also, the bottom line improved 29% on a year-over-year basis. Results benefited from the company’s fleet transition initiatives.
Quarterly revenues came in at $724 million, beating the Zacks Consensus Estimate of $707 million. However, the top line declined year over year owing to the sale of ExpressJet Airlines in January 2019.
In fact, SkyWest’s efforts to modernize its fleet and streamline operations are very impressive. The company aims to reduce the 50-seat jets from its fleet and add new E175 aircraft. In fact, this St. George, UT-based carrier reported a 6.2% increase in block hours (a measure of aircraft utilization) during the first quarter of 2019.
Operating expenses declined to 9.8% to $627 million owing to the sale of ExpressJet Airlines. Expenses on salaries, wages and benefits decreased 16% to $257.6 million.
The company exited the reported quarter with cash and marketable securities of $544.2 million, down 21% sequentially. Total debt increased to $2.7 billion from $2.8 billion in at the end of 2018.
We are also pleased by the company’s efforts to reward shareholders. To this end, the company bought back shares worth $25 million. Out of the $25 million, $21 million was purchased under our new $250 million program approved by the board in February 2019.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, SkyWest has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise SkyWest has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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SkyWest (SKYW) Up 2.6% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for SkyWest (SKYW - Free Report) . Shares have added about 2.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is SkyWest due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
SkyWest Q1 Earnings & Revenues Beat Estimates
The company delivered better-than-expected results in the first quarter of 2019. The company’s earnings (on an adjusted basis) of $1.33 per share, surpassed the Zacks Consensus Estimate of $1.18. Also, the bottom line improved 29% on a year-over-year basis. Results benefited from the company’s fleet transition initiatives.
Quarterly revenues came in at $724 million, beating the Zacks Consensus Estimate of $707 million. However, the top line declined year over year owing to the sale of ExpressJet Airlines in January 2019.
In fact, SkyWest’s efforts to modernize its fleet and streamline operations are very impressive. The company aims to reduce the 50-seat jets from its fleet and add new E175 aircraft. In fact, this St. George, UT-based carrier reported a 6.2% increase in block hours (a measure of aircraft utilization) during the first quarter of 2019.
Operating expenses declined to 9.8% to $627 million owing to the sale of ExpressJet Airlines. Expenses on salaries, wages and benefits decreased 16% to $257.6 million.
The company exited the reported quarter with cash and marketable securities of $544.2 million, down 21% sequentially. Total debt increased to $2.7 billion from $2.8 billion in at the end of 2018.
We are also pleased by the company’s efforts to reward shareholders. To this end, the company bought back shares worth $25 million. Out of the $25 million, $21 million was purchased under our new $250 million program approved by the board in February 2019.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, SkyWest has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise SkyWest has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.