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SkyWest (SKYW) Q3 Earnings Top Estimates, Revenues Miss

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SkyWest, Inc. (SKYW - Free Report) reported mixed third-quarter 2022 results wherein earnings outpaced the Zacks Consensus Estimate but revenues missed the same.

Quarterly earnings of 96 cents per share beat the Zacks Consensus Estimate of 72 cents but declined 34% from the year-ago quarter’s levels.

Revenues of $789.4 million missed the Zacks Consensus Estimate of $829.5 million but improved 6% year over year. The uptick was backed by the addition of 33 E175 aircraft to its operations since third-quarter 2021 and the elimination of the COVID-19 partner revenue concessions from third-quarter 2021.

SkyWest, Inc. Price, Consensus and EPS Surprise

 

SkyWest, Inc. Price, Consensus and EPS Surprise

SkyWest, Inc. price-consensus-eps-surprise-chart | SkyWest, Inc. Quote

Revenues from flying agreements (contributing 96.7% to the top line) rose 6.2% from the year-ago quarter’s figure. Expenses pertaining to salary, wages and benefits increased 15.9% in the quarter. Aircraft fuel expenses fell 13.5% year over year.

The airline carried 1.4% less passengers year over year. The passenger load factor (percentage of seats filled by passengers) increased 5.5 percentage points to 84.6% in the third quarter.

SkyWest exited the third quarter with cash and marketable securities of $1,004.2 million compared with $974.7 million at the end of June 2022.  Long-term debt (net of current maturities) was $2.98 billion in the third quarter compared with $2.86 billion at June 2022-end.

Capital expenditures during the third quarter were $224 million. The spending was due to the purchase of nine E175s and other fixed assets by SKYW during the quarter.

Currently, SkyWest carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Transportation Companies

Delta AirLines’(DAL - Free Report) third-quarter 2022 earnings (excluding 42 cents from non-recurring items) of $1.51 per share fell short of the Zacks Consensus Estimate of $1.56. Escalated operating expenses induced the earnings miss. Multiple flight cancelations and booking weaknesses due to Hurricane Ian also hurt results. DAL reported earnings of 30 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.

DAL reported revenues of $13,975 million, which lagged the Zacks Consensus Estimate of $14,157.2 million. Driven by the high air-travel demand, total revenues increased more than 52% on a year-over-year basis.

United Airlines’ (UAL - Free Report) third-quarter 2022 earnings (excluding 5 cents from non-recurring items) of $2.81 per share beat the Zacks Consensus Estimate of $2.21 and our estimate of $2.17. An upbeat in air-travel demand aided results.

In the year-ago quarter, UAL incurred a loss of $1.02 per share when air-travel demand was not as buoyant as in the current scenario. The third quarter of 2022 was the second consecutive profitable quarter at UAL since the onset of the pandemic.

Operating revenues of $12,877 million beat the Zacks Consensus Estimate of $12,709.5 million and our estimate of $12, 631.6 million. UAL’s revenues increased more than 66% year over year owing to an upbeat in air-travel demand. The optimistic air-travel demand scenario is also evident from the fact that total operating revenues increased 13.2% from third-quarter 2019 (pre-coronavirus) levels.

J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.JBHT’s quarterly earnings of $2.57 per share surpassed the Zacks Consensus Estimate of $2.45 and improved 36.7% year over year.

JBHT’s operating revenues of $3,838.3 million also outperformed the Zacks Consensus Estimate of $3803.4 million. The top line jumped 22.1% year over year on the back of strength across — Dedicated Contract Services, Intermodal, Truckload and Final Mile Services segments. Total operating revenues, excluding fuel surcharges, rose 12.4% year over year.

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