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SkyWest (SKYW) Incurs Loss in Q4, Revenues Plunge 21% Y/Y
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SkyWest (SKYW - Free Report) incurred a loss of 93 cents per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 87 cents. In the year-ago period, the company reported earnings of $1.43 per share. Fourth-quarter results were hurt by depressed travel demand, thanks to the coronavirus pandemic.
Quarterly revenues of $589.6 million surpassed the Zacks Consensus Estimate of $530 million, but declined 20.7% year over year. The COVID-19 pandemic caused a significant cut in the number of scheduled flights, thereby inducing the year-over-year decline in the top line.
Revenues from flying agreements (contributing 96.6% to the top line) decreased 21.4% from the year-ago quarter’s figure. Total expenses (on a reported basis) were nearly flat year over year at $617.31 million. While direct operating costs reduced due to lesser number of flights operated, aircraft maintenance and depreciation expenses increased. The airline, which carried 48.9% less passengers during the fourth quarter, reported a 27.4% decline in block hours (a measure of aircraft utilization). Passenger load factor (percentage of seats filled by passengers) deteriorated 26.7 percentage points to 55.5% in the December quarter due to shrinkage in air-travel demand.
SkyWest, currently carrying a Zacks Rank #3 (Hold), exited the fourth quarter with cash and marketable securities of $825.91 million, up from $520.17 million at 2019-end. Long-term debt (net of current maturities) was $2.80 billion compared with $2.63 billion at 2019 end. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Airline Stocks
United Airlines (UAL - Free Report) , carrying a Zacks Rank #3, incurred a loss (excluding 6 cents from non-recurring items) of $7 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $6.56. Meanwhile, operating revenues of $3,412 million lagged the Zacks Consensus Estimate of $3,420.4 million.
Delta Air Lines (DAL - Free Report) , carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $1.34 from non-recurring items) of $2.53 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $2.43. Total revenues of $3,973 million topped the Zacks Consensus Estimate of $3,754.5 million.
Southwest Airlines (LUV - Free Report) , carrying a Zacks Rank #4, incurred a loss of $1.29 per share (excluding 25 cents from non-recurring items) in the fourth quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of $1.69. Meanwhile, operating revenues of $2,013 million lagged the Zacks Consensus Estimate of $2,117.5 million.
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SkyWest (SKYW) Incurs Loss in Q4, Revenues Plunge 21% Y/Y
SkyWest (SKYW - Free Report) incurred a loss of 93 cents per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 87 cents. In the year-ago period, the company reported earnings of $1.43 per share. Fourth-quarter results were hurt by depressed travel demand, thanks to the coronavirus pandemic.
Quarterly revenues of $589.6 million surpassed the Zacks Consensus Estimate of $530 million, but declined 20.7% year over year. The COVID-19 pandemic caused a significant cut in the number of scheduled flights, thereby inducing the year-over-year decline in the top line.
Revenues from flying agreements (contributing 96.6% to the top line) decreased 21.4% from the year-ago quarter’s figure. Total expenses (on a reported basis) were nearly flat year over year at $617.31 million. While direct operating costs reduced due to lesser number of flights operated, aircraft maintenance and depreciation expenses increased. The airline, which carried 48.9% less passengers during the fourth quarter, reported a 27.4% decline in block hours (a measure of aircraft utilization). Passenger load factor (percentage of seats filled by passengers) deteriorated 26.7 percentage points to 55.5% in the December quarter due to shrinkage in air-travel demand.
SkyWest, Inc. Price, Consensus and EPS Surprise
SkyWest, Inc. price-consensus-eps-surprise-chart | SkyWest, Inc. Quote
Liquidity
SkyWest, currently carrying a Zacks Rank #3 (Hold), exited the fourth quarter with cash and marketable securities of $825.91 million, up from $520.17 million at 2019-end. Long-term debt (net of current maturities) was $2.80 billion compared with $2.63 billion at 2019 end. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Airline Stocks
United Airlines (UAL - Free Report) , carrying a Zacks Rank #3, incurred a loss (excluding 6 cents from non-recurring items) of $7 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $6.56. Meanwhile, operating revenues of $3,412 million lagged the Zacks Consensus Estimate of $3,420.4 million.
Delta Air Lines (DAL - Free Report) , carrying a Zacks Rank #4 (Sell), incurred a loss (excluding $1.34 from non-recurring items) of $2.53 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $2.43. Total revenues of $3,973 million topped the Zacks Consensus Estimate of $3,754.5 million.
Southwest Airlines (LUV - Free Report) , carrying a Zacks Rank #4, incurred a loss of $1.29 per share (excluding 25 cents from non-recurring items) in the fourth quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of $1.69. Meanwhile, operating revenues of $2,013 million lagged the Zacks Consensus Estimate of $2,117.5 million.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>